RiversideHousingProject: Gauteng Provincial Government reduces Joburg’s HSDG funding, City responds

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    The City has since appointed external lawyers and plans to approach the courts with urgency to challenge the decision.

    The City of Joburg’s Executive Mayor, Herman Mashaba, is conducting a walkabout with the media today in Dieploot, 10 January, accompanied by MMC for Housing, councilor Meshack van Wyk. The visit to the Riverside Housing Project aims to bring attention to the issue of the inability to complete 1 485 RDP units.

    Construction will be stalled due to the Gauteng Provincial Government’s decision to reduce the City’s Human Settlements Development Grant (HSDG) funding.

    HSDG funding from the Provincial Government has suddenly been reduced by R180 million from the R248 million initially allocated at the beginning of the financial year.

    “It is critical that the residents of the City of Johannesburg are made aware of the impact of this irrational decision upon our most vulnerable communities,” a statement by the City read.

    “The City of Johannesburg has exhausted the inter-governmental relations framework in attempting to engage MEC Moiloa, Premier Makhura, Minister Nomaindia Mfeketo and President Ramaphosa on this decision to reduce its HSDG. These efforts have been ignored outright.”

    The City has since appointed external lawyers and plans to approach the courts with urgency to challenge the decision.

    “The decision to reduce Johannesburg’s HSDG comes on the back of the City spending 98 percent of its Housing Capital Budget last year, and having contractors on the ground busy with construction.”