1. DEPARTMENT OF HUMAN SETTLEMENTS Presentation to Portfolio Committee on Human Settlements 02 June 2010

2. PURPOSE To provide progress report on the implementation of the EXCO resolution regarding absorption of North West Housing Corporation (NWHC) personnel as part of the critical component of the winding down process. To provide progress report on the financial status of the Housing Corporation

3. SITUATIONAL ANALYSIS The NWHC was established mainly to compliment the efforts of the government to provide different forms of shelter to the communities. The Institution has been faced by various challenges relating to sustainability and in some instances credibility issues. EXCO resolved that the NWHC be winded up and the Premier has since made a pronouncement during her state of the Province address.

4. PROCESS Two task teams have since been established primarily to manage the process, one to concentrate on financial, debt management, immoveable and moveable assets; The second one will concentrate on absorption of staff. The two task teams comprise of personnel from the Housing Corporation, departments of Human Settlements

5. PERSONNEL STATUS 55 staff members of the Corporation were absorbed by the Department for Local Government and Housing 3 Staff members took severance packages. 5 Staff members resigned (including the CEO and 2 Executive Managers ) 1 Staff members retired through old age / disability

6. PERSONNEL STATUS Cont… 5 Staff members were lost through death. 40 staff members have been matched and process of placement is being finalized. 7 contract staff who make the core management/ other staff have been allowed to complete this contract which end on 31 March 2010 and have been informed accordingly.

7. FINANCIAL IMPLICATIONS The most critical matter is that some of the outstanding debts are of statutory nature and if not attended to now have the potential of bringing the institution to liquidation. In total the corporation is indebted to an estimated amount of R 147 million.

8. SALE OF IMMOVABLE PROPERTY The Corporation uses two methods to sell its properties: Rental Stock The current occupants be given the first option If option 1 fails, then open market. Vacant Land First come first serve principle applies Buyers to pay 10% after deeds of sale is signed Given three months to finalize the sale