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Houses intended for poor residents are not for sale
​EThekwini Mayor Zandile Gumede, Deputy Mayor Fawzia
Peer and Human Settlements and Infrastructure Committee
Chairperson Councillor Mondli Mthembu with an elated house
recipient, Phumzile Mbambo, who was one of four beneficiaries
of the newly built Breaking New Ground (RDP) houses in
eTafuleni, Inanda during this year’s Mandela Day celebrations
on 18 July. Council has warned people not to sell government
houses for financial gain.
ETHEKWINI Municipality has condemned the selling of government houses by recipients, which is rife especially in Breaking New Ground (RDP) housing projects.

The Municipality is taking a tough stance against beneficiaries of government housing who are selling their homes for financial gain. Human Settlements and Infrastructure Committee Chairperson Councillor Mondli Mthembu has issued a stern warning to those who are involved in this illegal practice. “If government has issued a house to you and you put it on the market for sale, you will face the full might of the law. It is not allowed and is a criminal activity. If you are doing it, you will find yourself on the wrong side of the law,” he said. The City’s Human Settlements Unit is working with the City Integrity and Investigations Unit to deal with fraudulent activities taking place in various housing projects in eThekwini.

Allocations Manager for the Human Settlements Unit Gugu Ngema said the selling of houses is a challenge which the City is working hard to eradicate. “Beneficiaries who sell their houses must be aware that they cannot benefit from another housing project in South Africa because the Department of Human Settlements uses one system called the Housing Subsidy System. This system records the information which is available to any administrator working in the department irrespective of the province they are in,” she said. The Municipality is aware that some beneficiaries are selling their houses and returning to informal settlements or transit camps where they previously lived.

A warning has also been issued to those buying RDP homes. “To those who buy houses from beneficiaries, the title deed remains in the name of the approved beneficiary. If the beneficiary decides to come back and evict you, the Municipality cannot intervene because the title deed and records will prove who the owner is. The buyer will therefore lose their money,” explained Ngema. The Municipality is in possession of a court order to evict illegal occupants who have invaded the Cornubia Integrated Human Settlement Project.

The Human Settlements Unit has been approached by people in possession of false allocation letters under the pretence that they have been given the letters to use in order to collect their house keys. The fake letters, titled “temporary title deed”, are being investigated by the Municipality along with all other housing related fraudulent activities that have been reported to the City. Allocations for houses are done based on all approved beneficiaries by the Housing Subsidy System. This is followed by the allocation to the rightful owner. Ngema reiterated that government houses are not for sale.
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