5 June, 2003 Press Release JOBURG ACCELERATES HOUSING DELIVERY It is unfortunate that the Star today carried misleading and inaccurate story. This is despite having access to all relevant City officials to verify the facts. The story headlined "Joburg boss demoted over housing shambles" on pages 6 missed an opportunity to inform Johannesburg residents about progress being done to accelerate housing delivery in the City. The City of Johannesburg places on record that it has learned with dismay that Shimi Maimela has been demoted. It wishes to further state categorically that Mr Maimela is still director of housing in the City of Johannesburg. Furthermore, in respect of the constitutional mandate that places an obligation on provinces to support local government in capacity building, the Gauteng Department of Housing has undertaken the exercise of monitoring the effective functioning of housing departments in all municipalities within the province. This is done to identify areas of possible intervention or cooperation with local government. Once these have been identified, a partnership is then formed with the relevant authority to effect measures of intervention. At this stage, a need for intervention has been identified in the Johannesburg department of housing. This is done with full participation of the department and its management. The City of Johannesburg housing department and the Gauteng Department of Housing are currently discussing mechanisms of intervention as well as the scope of intervention. The province proposes providing consultancy capacity to work with the current management of the city department to identify long-term solutions. This is to be done with full participation of the current head of department, Mr. Shimi Maimela. The report about a provincial team to take over administration is factually inaccurate. The context of this intervention should therefore be understood as a contractual partnership to complement and assist in accelerating housing delivery in specific areas. The allegation that the provincial department of housing has instituted forensic investigation against the council department is inaccurate. The current forensic investigation instituted by the province is on the use of housing subsidies by the government. It therefore focuses on projects across the province and not particular municipalities. Furthermore it is imperative that the following inaccuracies are address: The City of Johannesburg housing department spent R121.5 million Capital expenditure in the 2001/2002 financial year and has already spent R104 million capital expenditure in the current financial year. (We are definitely perplexed by the R100-million unspent budget) Johannesburg's housing department is the sole developer of the Vlakfontein West Project by virtue having signed a funding agreement with the Gauteng Province. In 2001 Nu-Way Housing Company (not Urban Dynamic as per the report) were appointed project manager for the project. The lead project management role rests with Nu-way who have delegated this duty to Maluleke, Luthuli & Associates. The city advertised a tender in March this year for the installation of services on 3100 stands as part of phase one. Tender adjudication and the awarding of this tender is awaiting the finalisation of a process embarked upon by the housing department, Johannesburg Water and the Johannesburg Roads Agency. The City of Johannesburg is disturbed by this type of reporting, which we consider to be unethical and damaging. On discussion with your reporter he admitted that he dialled incorrect numbers in his attempt to obtain the City's comment. This we find unacceptable because the Star's news desk has the correct details of the city's spokespersons. ENDS... Nthatisi Modingoane Media Liaison Officer CITY OF JOHANNESBURG Tel: (011) 407 7354 Fax: 403 3494 Cell: 082 467 9228 E-mail: nthatisem@joburg.org.za