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22

Presentation to the Parliament Select Committee

on Public Hearing on 2 & 3 November 2004 – Parliament

–

CAPE TOWN

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Presentation TopicsPresentation Topics

• Servcon’s Mandate and Role

• Performance to date

• Challenges

• Corrective Measures put in place

• Changing Environment

• Financial Management

• Way- Forward

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1.1. Servcon Mandate and RoleServcon Mandate and Role

• Joint Venture between Government and the Banking Sector

• Deals with repossessed properties – on or before 31 August 1997 totaling 33 386

• Four key options were made available to clients namely rental; buy back i/s; Insitu for disabled and aged; Relocation Assistance Programme – Thubelisha

• Contract for eight years 4/1998 to 3/2006

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2.2. Performance to DatePerformance to Date

• First Five years achieved set targets with an ideal Soft Core clientele – 52, 5% properties were satisfactorily disposed of.

• Remaining Portfolio as at 1 April 2003 constituted Hard Core clientele.

• Target set for 31/03/2004 was 65% SDO and only 59% was achieved & reasons

• Political interventions; Failed evictions and moratoriums placed by Provinces

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3.3. ChallengesChallenges

• Key Stakeholders: having varying ideas on how to assist Servcon achieve its SDO’s targets

• Clients, who opted for relocation program, reneging to move when prompted to do so

• Evictees, who were taken through applicable options, using political structures to remain in illegal occupation of bank owned houses

• Delayed implementation of suggested alternatives and limited meeting of SDO targets

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4.4. Corrective Measures put in Corrective Measures put in placeplace

• Articulated, to all stakeholders and partners, pertinent issues that needed respective attention and thus enable Servcon to positively achieve SDO targets

• Suggested in situ right for all houses where outstanding debt is less than subsidy amount

• Suggested an incentive equivalent to eviction cost for relocation acceptance

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5.5. Changing EnvironmentChanging Environment

• The environment has drastically changed since 1 April 1998

• Although Servcon assisted clients in the ring fenced properties, more people came forward asking for the same privilege – extension of cut off date: DoH is still entertaining proposal

• Servcon role in assisting the DoH i.t.o. of new Housing Plan and the FSC.

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6.6. Financial Management Financial Management

98/99

99/

00

00/

01

01/

02

02/

03

03/

04

04/

05

05/

06

Budget R23,6m R20,0m R26,4m R28,0M R31,6m R30,1m R32,4m R25,5m

Spent R23,0m R21,7m R23,1m R26,6m R28,8m R29,7m

Variance R0,6m R1,7m R3,3m R1,4M R2,8m R0,4m

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7.7. Way ForwardWay Forward

• Finalize ring fenced portfolio on or before 31 March 2006

• DoH enhancing Servcon in terms of the Housing Comprehensive Plan and ensure it carries out its renewed mandate on Consumer Education, Rental Stock and Secondary Market initiatives – PPP

• Monitoring and Evaluation - Performance

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THANK

YOU