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Policy and Budget Speech 2012/13: MEC Masango - Department of Human Settlements                     

Provincial Legislature, Nelspruit, 22 May, 2012    

Honourable Speaker and Deputy Speaker
Honourable Premier, Mr DD Mabuza
Honourable Members of the Executive Council
Honourable Members of the Provincial Legislature
Fellow compatriots


On the 08th January 2012, the African National Congress (ANC) celebrated 100 years of its existence. The centenary celebration held at Mangaung, in the Free State Province was not by accident, this is where the ANC was born (1912). This was an historic feat for Africa’s oldest Liberation Movement and its people. Since its formation in 1912, the ANC has grown in stature and impacted positively on people’s lives in and outside the country’s borders.  

I think it is fitting to dedicate this Policy and Budget Speech, 2012/2013 to the brave warrior Kings who defended the invasion, colonisation and ultimately the conquest  of our forefathers land: Nghunghunyane, Soshangane, Moshoeshoe, Nyabela, Mabhoko, Manala, Mswati, Sobhuza, Shaka, Cetshwayo, Sandile, Dalindjebo,  Hintsa, Makana, Makhado and Mphephu I.

Bayede !!

Let us also dedicate this Policy and Budget Speech to the glorious memory of the heroic leadership of the ANC esihole kwaze kwaba la!: John L. Dube, Sefako Mapogo Makgatho, Josiah T Gumede, Pixley ka Isaka Seme, ZR Mahabane, AB Xuma, JS Moroka, Chief Albert Luthuli, OR Tambo and those still alive: NR Mandela, TM Mbeki and JG Zuma

Unwele olude maqhawe’ sizwe !! 

Hon. Speaker, let us also dedicate this Policy and Budget Speech to the first Minister of Housing in a democratic South Africa, Comrade Joe Slovo.  We will always remain deeply indebted to his farsightedness, resourcefulness and selflessness in working for the people of South Africa.  

Hon. Speaker, this noble vision of a united and non-sexist human settlements was proclaimed by the Freedom Charter in 1955 in that:

“There shall be houses, security and comfort!

All people shall have the right to live where they choose, be decently housed, and bring up their families in comfort and security,

Unused housing space to be made available to the people......

Slums shall be demolished, and new suburbs built where all have transport, roads, lighting, playing fields, crèches and social centres” 

Equally befitting is the fact that these ideals find resonance in the Constitution (1996) of the Republic (South Africa) through the Bill of Rights. Section 26 states that:  

  • “ Everyone has the right to have access to adequate housing,
  • The state must take reasonable legislative and other measures, within its available resources, to achieve the progressive realisation of this right, and
  • No one may be evicted from their home, or have their home demolished, without an order of court made after considering all the relevant circumstances. No legislation may permit arbitrary evictions”.  


In the last 18 years since the dawn of democracy the department has delivered just over 160 000 (166 564).

 Honourable members there is however, a huge task ahead of us as we remain ever committed to deliver quality services to our people. The demand for houses is still huge.

Since 2009, the department had a new approach following changes effected by the current administration. The migration from housing to human settlements was necessitated by the apparent poor planning and lack of synergy between government spheres during delivery.


Hon.  Speaker, we are steadily migrating from the narrow mandate; Housing to a broadened mandate; Human Settlements.  We are directed by the Hon. Premier’s injunction of 2009, SOPA wherein he said: “Honourable members, our approach to building cohesive and sustainable communities will focus on the development of integrated and de-racialised human settlements.  The development of socially inclusive settlements with economic and social infrastructure is essential in fostering social cohesion and racial harmony.  The task of building a truly united, non-racial, non-sexist and democratic society is a social transformation imperative that we will continue to pursue”.

At the beginning of the 2011/12 Financial Year, the Department committed to deliver on a range of services of its broadened mandate. This commitment was guided by government’s Outcome 8 with its four outputs.

The outputs where we continued to deliver included the upgrading of informal settlements, identification of well located land for human settlements development, provision of accommodation for people within the gap market, and the provision of basic services such as water, electricity and other related services to households.  

Since 2009 our mandate was broadened to ensure the delivery of well coordinated and sustainable human settlements where people can have access to portable water, access roads, recreational, educational, health facilities and different housing typologies.

One of the major achievements was the delivery of the Klarinet Integrated Human Settlements Project in March 2012. The multi-billion project was opened by Minister Tokyo Sexwale, other Human Settlements MECs and myself.  

Upon completion, the project will have nearly 12000 units, comprising of rental stock, low cost houses, bonded houses, recreational facilities, and social and economic facilities.  Klarinet is an excellent example of the collaborative effort and joint development amongst stakeholders such as the government, the private sector and the municipality.  Isn’t that what the country needs?


The CRDP is a very imaginative flagship under the Mabuza Administration in that it will alleviate poverty, provide employment and skills in the true spirit of Vuk’uzenzele in the seven poverty-stricken local municipalities namely: Nkomazi, Bushbuckridge, Thembisile Hani, Dr JS Moroka, Mkhondo, Chief Albert Luthuli and Pixley ka Isaka Seme.

Equally remarkable was the delivery of the 3 275 out of the planned 5 300 People’s Housing Process (PHP) housing units as part of the CRDP. This was our contribution towards rural, economic and skills development.

Indeed our contribution with the PHP programme is making a conspicuous mark towards the Province’s rural development strategy.

The poor start in the establishment of cooperatives - which were to produce building material such as bricks, window and door frames – affected the smooth implementation of the programme.

Reverting to the conventional route of utilising Community Resource Organisations (CROs) was not a diversion from the policy, but an intervention aimed at delivering the houses therefore not surrendering the budget to other Provinces.

In fact our approach of delivering PHPs through the CRDP route is lauded at some quarters including the National Portfolio Committee on Human Settlements.  The Province hosted the committee in July 2011.

Under the Informal Settlements Upgrading Programme, a total of 1 286 of the 2 319 targeted units were delivered.

We managed to complete 831 of the 1 450 planned units through the Project Linked Programme at various areas in the Province.    

Still during the past financial year, the Department achieved 908 of the planned 425 units, including projects carried over to the year under review through the Integrated Residential Development Programme (IRDP).

Honourable Members, despite these and other challenges the Department delivered an overall total of 7 702 housing units including 635 Community Residential Units (CRUs) from the total planned target of 10 568.

CRUs are normally refurbished old hostels and turned into decent family units - another form of intervention to address the ever growing housing demand and the provision of respectable accommodation through our Rental Stock Programme for example Chromeville Hostel built in Steve Tshwete Municipality.

The remaining projects were at various stages of completion given the nature of our business (construction) which is not favourable in some seasons of the year.

I must indicate though that 2011/12 has been an adventurous period in a sense that we were just a year into the new mandate. This voyage was not an easy one though, but we continued to soldier on and navigated the tumultuous seas.

My interaction with our stakeholders made us to share ideas and plans on how to improve our mode of delivery. And I must say that such engagements need to be nurtured for the benefit of all. 

The commitment shown by all partners in our quest to deliver integrated human settlements proved formidable. This can be attributed to the partnership we have with Absa Dev-Co, the eMalahleni Local Municipality, the National Department of Human Settlements and the Department of Energy.

I wish to challenge all municipalities to visit Klarinet and see what lessons they can take from this much talked about development. The Klarinet Project is a shining beacon for the Province and features prominently as one priority human settlements projects in the country.


Under the theme – “From Housing to Human Settlements” – all stakeholders, including academics, traditional leadership, local government (municipalities), and councillors gathered to deliberate on important issues affecting the delivery of quality services.

Important resolutions aimed at improving the way we roll-out the delivery of human settlements were taken. The delegates agreed on - amongst others – the following resolutions:

  • Coordinated planning with all government spheres and entities,
  • Identify development nodes in each municipality for human settlements delivery
  • Improve public participation for better planning and delivery
  • The development of a long term vision for Integrated Human Settlements, and
  • Address land ownership and development on Tribal areas and municipalities.

The indaba was soon followed by sector specific engagements aimed at mobilising them to partner with the Department in its quest for integrated planning.

The interactions further galvanise all of us to look beyond the near future, but a longer vision as envisioned by the outcomes of the Planning Commission Report.

The Indaba outcomes and the policy shift will over the next few years be implemented in a manner that undermines the apartheid spatial planning.

Our approach will henceforth not only look at brick and mortar, but pay special attention to other issues environment, space, land, and economic development. A holistic approach will remain central in our new journey.


As indicated by Honourable Premier DD Mabuza in his 2012 State of the Province Address, “Integrated human settlements embody our national vision of promoting non-racialism and prosperous communities. It is indeed a paradigm shift from the past where people were settled along racial lines and Blacks were placed as far as possible from the areas of economic activity”.

Premier Mabuza committed the Department to the promotion and facilitation of affordable rental and social housing market. These are exactly what we are all about this financial year.

The new approach is not just about the change of name but compels the Department to do more to mobilise its stakeholders to deliver as a collective.

This paradigm shift will see the delivery of services in an integrated and sustainable manner, where socio-economic, recreational, health and educational facilities and other required amenities will be delivered.

In fact, this Department is entrusted with the responsibility of playing a leading role towards mobilising resources and partners to make our communities sustainable.

OUTLOOK FOR 2012/13 (Departmental Priorities)

Honourable Members, it is an over stated fact that the Department has to move towards the delivery of human settlements as opposed to houses. The Department therefore has to strengthen its grip in delivering in that manner.

Directed by outcome eight – with four outputs, the Department has clear targets to meet until 2014:

  • Upgrading informal settlements and rental stock target,
  •  Improve access to basic services (water, sanitation, refuse removal and electricity),
  •  Provision of accommodation units within the gap market of people earning between R 3 500 and R 15 000 a month, (Gap market) and
  • Mobilise well located public land for low income and affordable housing with increased densities.  

On rural development, the Department plans to deliver 450 rural housing subsidies and 270 units for the farming community.


During the 2012/13 financial year, the Department will start with planning for the creation of new sustainable integrated human settlements in the following municipalities: - Nkomazi, Msukaligwa, Mbombela, Steve Tshwete and Umjindi.

Through the Department’s Planning Steering Committee, processes are already underway between the Department and the municipalities on development plans regarding the land.

After exhausting all the planning phases, the Department, the municipalities, sector departments and other social partners will focus on the actual construction of the approved human settlements plans in each locality.

Honourable Members, it must be noted that the delivery of integrated and sustainable human settlements will be rolled-out in stages in the sense that they will require more resources, intense planning and to a certain extent a reconfiguration on how the grant is being allocated.

Much as the mandate has been changed, funding from the National Department is still trapped in the old way – of being housing inclined.  Once again, maybe the Province has to start a debate around this matter.

The establishment of human settlements must however, not give an impression that individual houses will no longer be constructed. Given the rural nature of our Province, we will still need, amongst other programmes - the People’s Housing Process, Farm Worker Housing, and Individual Subsidies.

Upgrading Informal Settlements

And again, the upgrading of informal settlements remains a key focal area. We will still build where people stay. To this end, a total of 2 527 housing units will be constructed under this programme.

As a priority the department would like to see total eradication of Informal Settlements in moving these settlements to properly demarcated and serviced sites in support of Outcome Eight (8).  

Adding impetus to this cause will be the promulgation of the Mpumalanga Elimination and Prevention of and the Re-emergence of Informal Settlements Bill, 2012. The Draft Bill is ready for submission to the Executive Council for approval.

Once the Executive Council approves the Bill, it will be taken for public comments to all relevant stakeholders and interested parties. We envisage that all the processes will be completed within this financial year, provided no major hindrances are encountered.

Inner-city rejuvenation and rental stock management

To curb urban decay and tackle inner city rejuvenation, the Department will identify buildings in Mbombela and Emalahleni Local Municipalities to address the need for affordable state rental.

Provision of affordable state rental stock will see the delivery of 300 family units at Steve Tshwete, 250 at eMalahleni and 100 at Govan Mbeki Local Municipalities.

The rental stock programme is another form of dealing with the mush-rooming of informal settlements, and also provides decent and affordable accommodation. The structures will be refurbished and be utilised to deliver on quality community residential units (family units).

Improve access to basic services

The provision of basic services such as water, electricity, and refuse removal remains a transversal function. It cuts across government departments and municipalities.

Water provision is primarily a municipal function, and as a Department we will continue to coordinate the servicing of settlements within our operational sphere, therefore supporting municipalities with this function. A total of 9 264 sites will be installed with services (internal reticulation) during this financial year.

The aspect of coordinated planning as espoused by the Planning Commission Report will also find expression in the envisaged Human Settlements Master Plan.  


Following the approval of the organogram in the previous financial year, the Department has made significant in-roads in appointing senior managers and stabilising regional offices. Our regional offices have dedicated officials to ensure instant delivery. 

We will again this financial year finalise all appointments for critical senior positions in order for us to focus on delivering the mandate. Other positions at middle and junior levels will also be processed. 

By so doing, we will create an enabling environment for proper project management, monitoring and quality assurance. The relationship between the National Home Builders Registration Council (NHBRC) and the Department bears testimony to this.

Govan Mbeki Human Settlements Awards, 2012

The Department recently acknowledged stakeholders who have made immense contribution within the human settlements space. The awards also honoured role players in the human settlements value chain, including developers, building contractors, banking sector, community based organisations, mining sector and professional associations, to mention but a few.  

Let me congratulate all the winners who were duly honoured at the glittering awards ceremony on the 08th May 2012. They are:

  • Ms Khomotso Choma - Best Informal Settlements Upgrading Project
  • Mr Sipho Mnyakeni – Best People’s Housing Process Project (PHP)
  • Steve Tshwete Housing Association – Best Rental Stock Project (Mr TT Ntuli and co)
  • Klarinet Integrated Project – Best Priority Project (eMalahleni Local Municipality)

May I wish all the winners GOOD LUCK as they will continue to compete with their counterparts at the National Awards Ceremony to be held on the 31st May 2012 at Gallagher Convention Centre in Gauteng.

Budget Presentation

Honourable Members, may I present the budget of R 1 164 949 000 for the Department of Human Settlements (Vote 13) as outlined below:

Programme 2012/13 R’000
Administration  88 907
Housing Needs, Research and Planning  47 721
Housing Development and Implementation  1 022 754
Housing Assets Management 5 567
Total appropriation R 1 164 949


This Budget, Honourable Members, will deliver a total of 10 985 housing units through the various programmes and other required amenities towards the establishment of proper human settlements as articulated by our mandate.

Let us make bold our view that we shall remain wedded to the vision propounded by the Freedom Charter, 1955 and the directive so clearly enunciated by the Hon. Premier, 2009 SOPA, that we must build integrated non-racial communities.  In fact, as Human Settlements, we must contribute in the realisation of a non racial society of our dreams.   


Let me conclude by drawing your attention to the ever enduring words of wisdom of Thomas Sankara, former President of Burkina Faso: You cannot carry out fundamental change without a certain amount of madness.  In this case, it comes from nonconformity, the courage to turn your back on the old formulas, the courage to invent the future.  It took the madmen of yesterday for us to be able to act with extreme clarity today.  I want to be one of those madmen.  We must dare to invent the future.”

I would like to personally commend the oversight role played by the Portfolio Committee on Human Settlements, Co-operative Governance and Traditional Affairs. The committee’s sharpness kept the Department on its toes under the able leadership of Honourable SPD Skhosana.   

Siyathokoza Bab’ uSkhosana neKomidi yakho.  

In addition, I would like also to thank the Budget and Finance Committee for guiding and supporting the Department.

Allow me to thank the Honourable Premier, Mr DD Mabuza for his visionary stewardship and guidance to the Department. And that also goes to my colleagues in the Executive Council. 

Again, the leadership shown by the HOD, Mr D Dube, his management team and the entire staff is commendable. The guidance and dedication exhibited by all is really laudable.  

Finally, I owe a deep debt of gratitude that I can’t repay, to my family for sharing my responsibilities with the nation. Your love, support and tolerance is immeasurable.

Dumako, Phond’ Elibovu!    

The homeless shall be housed, challenges notwithstanding!

Inarha ayilale.  Uzimu nabezimu banitjhudubaze.



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