Free State shockingly spends R1.4 million per housing unit

14 May 2015

The Human Settlements Portfolio Committee heard this week that the Free State Provincial Department of Human Settlements is spending R1.4 million on just 18 Emergency Housing Assistance units and just over R1 million to upgrade 100 Community Residential Units.

The presentation revealed that 18 houses for Emergency Housing Assistance will cost the taxpayer just over R25 million. A further R108 million is allocated to upgrade 100 Community Residential Units, formerly known as hostels.

This is simply outrageous. How can this be the case considering that the average cost of building a decent Breaking New Ground (RDP) house from scratch is an estimated R100 000?

I am therefore writing to the Minister of Human Settlements, Lindiwe Sisulu, to request that she investigates the ballooning costs to build housing units in the Free State.

The same department spent almost R80 million on the restoration of just 264 houses - this amounts to R302 250 per house, this year.

This exorbitant amount of taxpayer’s money being spent needs to be accounted for and the DA therefore urges Minister Sisulu to step in and intervene in the Free State.

By inflating the cost of building new housing units fewer units can be built, exacerbating the housing backlog. The DA will continue to ensure that those acting in contravention of the law will be brought to justice.

Statement issued by Makashule Gana MP, DA Shadow Minister of Human Settlements, May 14 2015