Durban: The KwaZulu-Natal Department of Human Settlements has secured R100 million in additional funding from the national government.

The department said the funds were provided to the province following recognition for its efficient spending and ability to manage housing projects effectively.

The funds, redirected from underspending provinces, will primarily be used to resolve issues at the Aloe Ridge Social Housing Project in Msunduzi Municipality, where 261 units have been illegally occupied since 2018.

Speaking at a media briefing on issues in the Human Settlements department, MEC for Transport and Human Settlements Siboniso Duma expressed gratitude to Minister of Human Settlements Thembi Nkadimeng and Finance Minister Enoch Godongwana for ensuring the funds were processed swiftly.

“We wish to announce that the Department of Human Settlements has again been identified to receive a reallocation of R100 million in additional funds. The KZN Department of Human Settlements is commended for always displaying the capacity to spend efficiently,” said Duma.

The Aloe Ridge Social Housing Project, consisting of 952 two-bedroom units, was completed in February 2018 but soon faced a major setback when 261 units were invaded by military veterans and community members.

This occupation caused severe financial strain for Capital City Housing, the Social Housing Institution that is managing the project.

Duma emphasised that the R100 m reallocation is meant to address two key issues:

Resolving the matter of 261 invaded flats through asset acquisition

Providing financial reprieve for Capital City Housing, which has been struggling under business rescue and facing the threat of liquidation.

“We wish to caution Capital City Housing and other Social Housing Institutions operating in KZN to always guard their assets and manage their facilities in a manner that does not invite bankruptcy,” Duma warned.

He added that he had mandated the Head of Department to assemble a joint team with representatives from national Human Settlements, national and Provincial Treasury, Capital City Housing, and Msunduzi Municipality to ensure the allocated funds are used efficiently and deliver the intended outcomes.

Duma acknowledged that the department has faced severe financial pressure, worsened by multiple housing projects moving into implementation simultaneously without matching cash flow.

Budget cuts in 2023/24 also created financial difficulties, leading to serious accruals in the current financial year.

“The people of KwaZulu-Natal will recall that when President Cyril Ramaphosa was here with his cabinet, he singled out the building of houses for the people as deserving special attention. He further congratulated the department for doing more with fewer resources and offered to ensure that more support is extended,” Duma said.

THE MERCURY