/ MEDIA STATEMENT / The content on this page is not written by Polity.org.za, but is supplied by third parties. This content does not constitute news reporting by Polity.org.za.

The huge funding injection hastily allocated to address the Northern Cape housing backlog, on the doorstep of the 2024 election reeks of electioneering as opposed to the true restoration of dignity to those waiting for a home.

We are concerned that R600 million of the R1 billion housing project, to be launched by President Cyril Ramaphosa in Kimberley later this week, is being borrowed for this project. The projected interest payment stands at R94 million. This form of funding mechanism, known as “frontloading”, is a pilot funding model being tested on the Northern Cape human settlements backlog.

The DA has its reservations about the provincial government’s ability to not only manage more debt but to ensure that there is ultimately value for money for this costly loan-investment. In the past, we have seen the costs of construction projects in the Northern Cape, like the mental hospital, escalate from R290 million to R2,1 billion. We have seen special allocations, like the millions of rands of Covid-19 funds intended for the procurement of PPEs, abused to such an extent that multiple court cases are currently underway. We also continue to witness the failure of the Roads and Public Works Department to managed construction projects. The latest Annual Report shows that only four out of 14 capital projects were completed within the allocate timeframe and only six out of fourteen within the agreed timeframe. This is serious cause for concern.

For a province already facing significant annual baseline reductions, on top of critical water and sanitation infrastructure backlogs, we also question the decision to prioritize top structures above fixing critical collapsing services, at a time when budget limitations are severe. Making debt so that the Premier can make good on promises he made to the people at the start of the 6th Administration, is questionable.

Given the timing of this project, we suspect that this is more of an ANC-vote winning stunt than an attempt by the ANC-government to deliver. That the housing launch is taking place in Roodepan, where an ANC councillor walked over to the PA and subsequently saw the ANC lose the ward to the PA, is a further telltale sign that this project has more to do with electioneering than it does with meeting the actual needs of Northern Cape citizens.

It also raises the question, whether this last-minute project has anything to do with Saul’s fairly recently launched State Owned Construction Company, which he urgently needs to justify before his term comes to an end.

This mega project will not serve to eradicate the housing backlog. Based on an oral reply about the project, previously received from the Premier, Dr Zamani Saul, the current cost per RDP unit is R250 000 per house. This means that out of the R1 billion, government can build 4 000 houses, as opposed to Saul’s previous promise of 6 500 houses on serviced sites.

While the DA sympathizes with the many residents of this province who have spent decades on housing waiting lists, we remain skeptical of this project. We will monitor it closely, posing more questions as the legislature gets underway.

Issued by Dr Isak Fritz, MPL - DA Northern Cape Premier Candidate