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DA raises alarm over R8.5m deficit at Polokwane Housing Association
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The DA in Polokwane has raised serious concerns over the financial mismanagement of the Polokwane Housing Association (PHA), which is projecting an R8.5 million deficit despite receiving a R10 million municipal subsidy.
DA councillor Jacques Joubert said the housing body has failed to submit annual financial statements on time and has regressed to a qualified audit finding.
Joubert pointed to the largely unoccupied phase two of the Ga-Rena housing project as a key example of mismanagement, citing delayed tenant placements and previous water supply issues. Phase one has also suffered vandalism and poor maintenance.
Joubert warned that without decisive leadership and regular reporting, the entity risks collapse. The municipality has not yet commented on the matter.
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POLOKWANE – The DA in Polokwane is deeply concerned about the manner in which the municipality's housing provision arm, the Polokwane Housing Association (PHA) is being managed, and intends to request a joint portfolio committee meeting to call the PHA Board of Trustees to account for a projected R8.5m deficit for the upcoming financial year.
This deficit is despite the inclusion of a R10m subsidy in the city's budget.
The PHA is tasked with providing affordable housing to qualifying residents but continues to be marred by maladministration and a failure to fulfil its core mandate, according to Jacques Joubert, DA councillor on the finance and land use, spatial planning and LED portfolio committees.
To exacerbate the situation, the PHA has failed to submit its Annual Financial Statements for the 2023/24 financial year within the legally prescribed time frame and regressed to a qualified finding.
'For far too long, the PHA executive management and board have relied on bailouts from the Polokwane Municipality, placing the financial burden squarely on the shoulders of the city's residents. This cannot be allowed to continue,' Joubert noted and added that currently, phase two of the Ga-Rena housing project at Ladanna which PHA is in charge of, remains mostly unoccupied, having stood vacant for many months – incurring substantial financial losses.
According to Joubert, initial delays were due to backup water supply issues, followed by the painfully slow pace of tenant placement.
'Occupation of these units with qualifying residents will significantly help to address Polokwane's housing backlog and alleviate the escalating problem of illegal land use and unregulated backyard dwellings.
Phase one also faces major issues and numerous units have been vandalised and are now uninhabitable.
Furthermore, the project has been plagued by poor debt collection since inception. 'Without firm and effective leadership, this entity is on a continued path to inevitable failure,' Joubert said and added that transparency and accountability are at an all-time low.
Monthly financial reports are not submitted to the housing portfolio committee, and no joint oversight meetings with the finance portfolio committee have taken place in over 18 months.
Comment could not immediately be sourced from the Polokwane Municipality.
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