POTSDAM
REMARKS BY BUFFALO CITY
EXECUTIVE MAYOR ZINTLE PETER

• Programme Director,
• Members of the Mayoral Committee (esp. Portfolio-holder for Housing),
• Councillors,
• Honoured Guests and Community Members,
• Representatives of the Contractor (Thubelisha Homes),
• Officials of the Municipality,
• Ladies & Gentlemen:

I also regard it as a privilege that I can be here as an instrument of service-delivery on behalf of the different spheres of government, of course assisted by our engineers and planners and workers in Buffalo City, to make sure that our people are able to see tangible signs of the better life that all of us are challenged to build.

Let us acknowledge that without the hard work of our contractors on this project, as well as the staff of the municipality who have responsibility for housing development, we would not be here for the handing over of these houses today.

Comrades, it was 52 years ago, in 1955, that the Congress of the People in Kliptown said in the Freedom Charter that "there shall be houses, security and comfort". This was not a declaration that was made in a political vacuum, neither was it a promise that in a democratic society, life was guaranteed to be comfortable without the need to work to earn a living.

Indeed, the Freedom Charter went on to say that the prosperity of our country depended equally on all people having access to work opportunities to enable them to earn their daily bread.

We all know the political context in which these statements were made: our people had been dispossessed of their land and property, and condemned in the land of their birth to a life of perpetual servitude as "hewers of wood and drawers of water".

In 1955, our people were regarded as migrant labourers that did not have a right to own property. We could work in the factories, in the kitchens, on the farms, we could clean the streets of the towns, but we could not have a home to call our own.

This was effectively the situation that faced us, comrades, when we prepared for our first democratic election in 1994. We all remember the challenges we faced in fighting for free political activity in what was then the so-called Ciskei homeland, first under L.L. Sebe and later under Oupa Gqozo. This battle was also being waged in the streets of Mdantsane and in Potsdam.

I think we can be very proud as a democratic government when international observers look at South Africa and ask, "How did you manage to build 2 million houses in the first decade of democracy?", because this is more than any other country which has similar resources and challenges to our own.

We are certainly very proud as Buffalo City that we have played a significant part in meeting this target, and that our Housing Division continues to enjoy the confidence of the Department of Housing, Local Government & Traditional Affairs as an accredited housing developer.

Under the previous Ciskei Government the policy at the time in certain areas of Mdantsane was to divide a four-roomed house in half and install a second family, in order to address housing shortages. Thus one house would be shared between two families, each with 2 rooms.

In 2001, Buffalo City resolved that a new housing project be implemented to resolve once and for all the issue of these shared houses, which did not provide a dignified living environment for families.

This particular project has consequently been aimed primarily at providing low-cost housing units at Potsdam (Unit P) for beneficiaries from various zones within Mdantsane who are currently living in "shared houses".

For each shared house, one family will be required to move to the new development whilst the other family will remain in the house.

At the project location in Potsdam there are also a number of shack dwellers who are currently residing on the development site (Ikwezi Block 2) who qualify for housing subsidies.

The total number of units for the project is 2,503 of which funding for the first 500 sites has been granted by the Provincial Housing Department.

The Contract was originally awarded to a local Joint Venture (JV) of emerging contractors in June 2005. However, due to poor performance and bad workmanship the contract was terminated in January 2006. They had worked on 52 sites - 1 show house and 51 foundations.

In April 2006, Thubelisha Homes were appointed as Implementing Agents for the balance of 448 sites.

Of the total of 2503 residential sites, there are 628 shack dwellers and 1,800 "sharing house" beneficiaries.

The project has been broken down into three stages:

Stage 1 : 500 sites 2006/2007
Stage 2 : 1000 sites 2007/2008
Stage 3 : 1003 sites 2008/2009

For Stage 1, the 500 sites have been split into 250 for each beneficiary community (Sharing & shack dwellers). The first phase is valued at R15,9 million and is due to be completed by December this year.

The beneficiaries from sharing houses are being relocated from Mdantsane to Potsdam using local labour and funding from the Mdantsane Urban Renewal Programme to the tune of R100,000.

Those moving to Potsdam will be given title deeds to their new RDP unit. The beneficiary remaining at Mdantsane will be given title deeds for the four-roomed house.

Another point is that the council policy of demolishing of shacks prior to handing over of keys to house units is being enforced. This is regarded as very important because our government has committed itself to the progressive eradication of informal settlements, and it is obvious that we will never achieve this goal if, when a house is handed over to a beneficiary, the beneficiary then simply moves back into his shack and rents the house out, or alternatively lives in the house and rents the shack out.

The relocation of beneficiaries has included the relocating school children. The Dept of Education is tasked with assisting this process.

During the construction of the houses emphasis has been put on the use of local labour and the use of women. Where possible local suppliers have also been used.

Ladies and gentlemen, I want to reassure you that we are aware of the defective workmanship of the original contractors, and are taking decisive steps to correct this. Legal action is currently being undertaken against the original JV, and a motivation has been submitted to DHLG&TA for funding to repair the 51 slabs and increase the subsidy funding for the 51 houses. The existing agreement with Thubelisha Homes may be extended to include these 51 sites.

An electrical contractor is presently on site and is due to finish in January 2008. Funding is from the national Department of Minerals & Energy and a condition is that project is 80% complete before funding is released, hence the contractor has only started recently now.

ID	Surname	Name	Address	New House Number
6402085440081	ZONDANI	SEPTEMBER	P378	6647 Ikwezi
6803016007081	MYEKI	ZOLILE DAVIDE	P158	6648 Ikwezi
6602016017086	GONIWE	ZAMELEKHAYA DAVID	B133	6649 Ikwezi
3601290266081	MAKOYI	NTOMBIZINI OLIVE	P138	6650 Ikwezi
5504095232084	MBALI	LOLOSE VIZARD	1642-6	6760 NU6
1407155180082	SOQHARA	VULINDLELA WILTON	4-5	6759 NU 5
4009130334086	PLATYI	NONCEBA VIOLET	P24	6622 Ikwezi
8306201298083	MRUBATA	KOLOSA	B159	6623 Ikwezi

It is a great pleasure for me to hand over the keys to these eight houses to the beneficiaries.

(Call up beneficiaries). > I look forward to returning here in the near future and seeing Phase 1 completed, seeing more than 400 families proudly occupying their new houses, seeing a vibrant human settlement where our children are playing safely, where there is pride in the appearance of the streets and the yards, and where there has been economic development.

The municipality looks forward to working with you as an integral part of Buffalo City to make our vision into a reality for all of us.

I thank you.

N.C. Peter
EXECUTIVE MAYOR

OTHER RELEVANT DETAILS:

Stage 1- 500 sites

Current Progress.
Foundations 415
Roofs 324
Completions 264

Beneficiaries already on site 210
(Approx. 50:50 between two beneficiary groups).
Completion date for 448 top structures - 14 December 2007.
Project Budget R 15 900 000.
Expenditure to date R 14 360 000

As s result of escalation of material costs, an application for additional funds has been forwarded to DHLGTA.
Stage 2 - 1000
Funding has been applied for from DHLG&TA for the Engineering Services. (Sewers, water, roads & stormwater). Subject to approval, tenders to be placed November 2007 with contractor appointed before Contractors shutdown, December 14, 2007.
Funding for construction of houses to be applied for in April 2008 to take advantage of new subsidy quantum on April 1st 2008.

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