South African Human Settlements Tender System Under Review

Cape Town – Human Settlements Minister Lindiwe Sisulu says her department will review its tender system to make it work better.

The Minister made this announcement when outlining the highlights of her budget vote speech at the Imbizo Centre in Parliament on Thursday.

She said the review was necessary as her department manages a budget of R30 billion, which she said was a lot of money.

“We will be reviewing the tender system, one of our biggest headaches in the Human Settlements environment.

“The review will focus on pre-qualifying contractors based on skills and capacity rather than price.

“We know the price, so there is no competition on price,” she said.

This comes as the department aims to build 1.5 million houses and housing opportunities to accommodate a growing housing backlog.

The Minister said her department was exploring partnerships to ensure that this target is met.

“Following the Human Settlements Indaba last year, we signed a social contract with the Banking Association of South Africa.

“It is our intention to translate this contract into a vehicle that will assist us towards an increased and enhanced delivery plan,” he said.

Minister calls on beneficiaries to care for their houses

The Minister said while government will strive to deliver quality houses to citizens, they also have a role to play to ensure that the houses they stay in do not fall apart.
“We appeal to our people to look after their houses.

“A beneficiary of a house has a responsibility to fix a broken window or door latch when it is broken.

“We are embarking on a nationwide consumer education to empower our people to understand the value of the houses they own, the importance of caring for it and most importantly, why they must not easily sell it to address short term challenges.

“In partnership with one of our entities, the Estate Affairs Agency Board, we will educate them on how the property market works,” she said.

4 000 houses built in mining towns

The Minister said her department was focusing on rolling out decent housing to 22 mining towns in six provinces, as per President Jacob Zuma’s directive.

The President appointed an Inter-Ministerial Committee last year to focus on revitalising distressed mining towns.

“For the last financial year, more than 4 000 units were delivered, mainly in Mpumalanga and North West, which are the main pressure points.

“In the Marikana area, there are two human settlement projects being completed that will deliver over 500 units built on land donated by Lonmin.

“Anglo American has embarked on a project to provide more than 10 000 housing units,” she said.