Media Statement: Strategy to Resolve Blocked Projects Welcomed, Provided it is Implemented Effectively

The Portfolio Committee on Human Settlements embraced the Department of Human Settlements’ intention, in consultation with provinces, to develop a revised strategy to unblock stalled projects. While the strategy is welcomed, the committee highlighted that effective implementation will be the only measure of the strategy’s success.

“It is important that the strategy is not merely another grand plan that does not address the plight of the people. It is now time to ensure that plans bear the necessary fruits and result in more housing opportunities for the people,” said Mr Nocks Seabi, the Chairperson of the committee. The committee’s emphasis on implementation is premised on the effects of stalled projects, which include wastage of financial resources and increased construction costs that eventually contribute to community frustrations and the erosion of trust.

It is important, according to the committee, that the strategy addresses poor administration, capacity challenges and procurement delays at local government level. “It is unacceptable that there is continued lamentation about lack of skills within the local sphere of government without clear plans to address those deficiencies,” Mr Seabi emphasised.

Also, inadequate project planning and management leads to the appointment of incapable contractors who are unable to deliver projects timeously. The committee reiterated the need to cease using contractors with bad track records in project delivery to ensure delivery of quality products.

The committee welcome the assurance that the strategy will address critical causes of stalled projects by focusing on clear project definitions, legal and contractual clarity, project categorisation, financial frameworks, contracting strategies, implementation and monitoring, and quality assurance. The committee believes that if these elements are achieved, the strategy has the potential to resolve many of the stalled projects.

Upon conclusion of the strategy, the committee will request periodic updates from the department to monitor implementation and ensure results.

Meanwhile, the committee welcomed plans to assist provinces and metropolitan municipalities to improve their financial performance against conditional grants. The committee reiterated its long-held stance that better planning and coordination is central to better performance. “The District Development Model provides a framework for coordination across spheres of government and must be exploited,” Mr Seabi emphasised.

Furthermore, the committee emphasised the need to avoid practices that have previously contributed to underperformance, such as delaying supply chain processes, spending grant funding on projects outside approved business plans, allocating funds for projects not ready for implementation, and not enrolling projects with the National Home Builders Registration Council prior to starting construction

The committee has committed to enhance monitoring grant funding spending to ensure that it achieves its intended use.

Distributed by APO Group on behalf of Republic of South Africa: The Parliament.