Cape Town - The Human Settlements Department has made the shocking revelation that it has not spent any funds from the R600 million in rental relief to tenants in affordable rental housing who faced financial distress due to the Covid-19 pandemic.
This was revealed by Human Settlements Minister Lindiwe Sisulu when she was responding to parliamentary questions from IFP MP Xolani Ngwezi.
In July, Sisulu announced in her budget vote speech the introduction of three Covid-19 impact relief measures to enable the sector to survive the serious shocks and constraints brought about by the pandemic.
One of these was the rental relief aimed at assisting tenants in formal affordable rental housing to meet their monthly rent obligations.
Sisulu said at the time that means testing would form part of necessary criteria to determine those who could be assisted and promised details of the relief for tenants in affordable rental was to be made within 30 days.
Five months after her announcement, Ngwezi asked what progress had been made with the distribution of the R600 million.
He also asked the relevant details of the selection criteria, including the means test, that were utilised to determine who was eligible for the specified funds.
Ngwezi also enquired how the specified budget has been spent and the number of tenants who have been allocated at each provincial and municipal level.
In her written reply, Sisulu said the government remained committed to providing support to the persons and households affected by the Covid-19 pandemic.
She also said the government has also introduced a number of measures, including the declaration of a state of disaster under the Disaster Management Act to support with specific reference to persons and/or households renting accommodation.
“The intent of the Residential Rent Relief Scheme (RRS) is to provide temporary financial relief for residential low-income tenants and landlords in circumstances where tenants have been unable and are unable to meet their rental obligations as a consequence of financial distress associated with the Covid-19 lockdown.
“While the assistance is targeted to the tenant, a landlord will receive a secondary benefit in the form of security of income,” she said in her written response.
Sisulu also said the funds would benefit all the tenants occupying affordable rental housing whether in the unsubsidised, and state subsidised rental sectors.
However, the minister dropped a bombshell saying there has not been any expenditure nor distribution of the funds, five months after her announcement.
“No funds have been used to date. No allocations have been made to date,” Sisulu said.
“A detailed policy framework for the Residential Rent Relief Scheme Programme is currently being developed by the National Department of Human which will provide guidelines,” she added.
Ngwezi said it was shocking that the department has not spent a single cent of the R600m allocated funds.
“It is a pity that our people are denied services because of the failure of the government to act or rather plan on time. If they say there is an issue of policy on how to allocate, it means the department is poor in planning,” he said.
Ngwezi said his party would pursue the matter in the New Year, when they returned to Parliament.
Ngwezi said he now feared that a bigger portion of the R600m might be forfeited to the National Treasury as it was unlikely to be fully spent by the end of March.
“If funds are not spent, they are forfeited to the National Treasury. It is likely that 60% of the funding will be forfeited because of the government’s failure to plan for our people,” he added.
Political Bureau