Where shall we go?

5 August 2004 - Drum Magazine

Millions of South Africans don't have roofs over their heads. in a new democracy, is it right that housing has become a luxury for the lucky minority?

Susan Majola would not be struggling to survive if the  law respected her contribution to the world.

At 64, she would be slowing down and resting with not a care in the world. But today she finds herself embroiled in a bitter row with the bank over her house. She's on the brink of losing not only her house, but her sanity too. This is the house her late daughter bought and now it's been attached by the bank following non-payment. Suzan's daughter, the only breadwinner, died two years ago.

"I was kicked out with my grandchildren and spent the night at the police station on charges of trespassing. It's not that I refuse to pay the bond; I get a pension and my grandchildren receive disability grants. I'd use it to pay the bond if the bank reduces the installment," says Suzan.

Sophie Matlhabe (46) is in the same predicament. She lost her job three years ago and hasn't been able to pay her bond since. She says she paid a deposit of R58 000 two years before moving in.

The bank, she says, required that deposit to make her monthly repayments reasonably low because she earned very little.

"My bond was R607, but sometimes I paid more. After losing my job I explained my problem to the bank. but an influx of people soon came to view the house as it was put on auction. I want to pay but it's difficult to get a job at my age. I'm left with a balance of around R40 000 and the bank wont accept the little I can pay every month," says Sophie.

But Sophie is defiant and vows to fight for her house. But sadly for Nana Monareng (58), the bank's already done its worst. Although she falls within a group that deserves clemency from the banks by virtue of her age and disability, she was evicted from her house in Protea City on 1 June. She was among the first group to feel the wrath of the bank in its quest to clamp down on bond defaulters.

"My goods are still outside because I've moved in with my sister and there's no space in her house. I was retrenched in 1999 while I was paying my bond. When I got my package I paid R20 000 towards the bond, but I haven't been able to pay since," says Nana.

She says she's desperate and will gladly accept an RDP house.

Minister Lindiwe Sisulu has arranged RDP houses for 11 of the evicted families and has asked the banks to halt evictions while they negotiate.

Nine million citizens are in need of homes and 2,2 million have to be built. That's a serious backlog. In their anger, residents have accused banks of racism. They claim banks are reluctant to negotiate for reasonable solutions.

The Protea Glen fracas broke as the dust was beginning to settle following clashes in Diepsloot where residents protested against apparent plans by the government to relocate them to Brits.

Thabang Chiloane, spokesperson for the National Department of Housing says his department is well aware of the housing shortage. However, he says, they've made strides and the country is considered the best in the world in terms of delivery in the housing sector. 

He says in the past 10 years government has provided 1,6 million houses to seven million people at a cost of R23 billion.

:We're not denying the fact that there's still a lot to be done but we've done our best in the last decade. proof of that was the United nations award presented to former Housing Minister Sanki Mthembu-Mahanyele in recognition of our efforts.

"Minister Sisulu will soon submit a comprehensive plan on how the Department will deal with the housing problem as demanded by the president.

"The Diepsloot and the Protea Glen issues highlight the extent of the problem we're faced with," says Chiloane. But if government is doing its best, why are so many people still homeless?

"We can't back allegations that the banks are racist because we're reluctant to generalise on their behalf. The Protea Glen situation teaches us that people must abide by their contractual obligations to honour their bond repayments. Government also needs to poster its relationship with banks and work hand in hand with them," says Chiloane.

Elliot Sithole of the Local Community Forum, which has been trying to assist families facing eviction in Soweto, says most people default on their payments because they can't afford to, not because they don't want to pay.

"Except for a few ignorant individuals, most of the people I interview actually have valid reasons. Unemployment is the major cause of the crises. We know banks seek profits, but they need to be sympathetic to the physically-challenged, HIV-infected, orphans, the unemployed and the elderly," says Sithole.

But what legal recourse do bond defaulters have? Advocate Neville Melville of the Ombudsman for Banking Services says there's often nothing they can do. "Generally complaints about property evictions or repossessions, particularly where legal action has commenced or the bank has obtained judgement against a client, are outside the jurisdiction of the Ombudsman.

"Occasionally, a bank has been prepared to restructure a loan or accommodate the homeowner in some other manner." says Melville.

He says the Code of Banking Practice contains an undertaking by banks to try to be understanding towards borrowers experiencing financial difficulties. but, he warns, borrowers are expected to be honest and open with the bank as soon as they run into financial difficulty.