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Evictions leave residents in despair

'I no longer have a home after paying for years'

For almost 10 years, Martha Sikrweqe and her children lived in a two-bedroom unit in Newtown, Joburg. They paid R940 a month in rent with the promise that one day she would be a part-owner tenant in a low-cost housing co-operative.

Sikrweqe's unit at the Newtown Urban Village, in 3 Malan Road, was an empty shell when she moved in nine years ago.

Helped by her son, she put up wall units and wardrobes where she could. And her children did their best to maintain the unit, painting and tiling it.

"I have used my pension money for the last five years, paying for this house," said the 65-year-old mother, clutching receipts as proof of her monthly payments. "I have never defaulted once, even though I don't work."

On Monday, Sikrweqe and other 350 families occupying the building formerly owned by Newtown Housing Co-operative were given until March 31 to apply for new accommodation with the Joburg Housing Company (JHC).

This is a result of the co-operative's support company, Cope Housing Association, filing for liquidation in 2005 after failing to repay a R14 million loan from the National Housing Finance Corporation (NHFC).

Cope was set up with the help of the government to develop and manage a new model for social housing in Gauteng, using funds from a Norwegian donor. But in September 2005 the company went into voluntary liquidation, leaving many residents of Newtown Urban Village in the lurch and the block of flats falling into disrepair.

Last August, a liquidator was appointed to take charge of the building, which was sold to the JHC for R27 million at an auction in November.

Sikrweqe and others facing eviction still have an R18 000 government subsidy registered in their names for the units they occupy.

They remain in the dark about the financial affairs of Cope and where their money has gone.

The residents refuse to accept responsibility for the debts the co-operative incurred.

"Where must I go now?" said a sobbing Sikrweqe. "I have nothing left yet today I am told I no longer have a home after all these years that I have been paying. How can I afford a rental house costing more than R1 000 while I am a pensioner?"

Another resident of Newtown Urban Village, Sello Dlamini, said many people who had bought into the co-operative in the hope of owning a unit had been "swindled".

"How can a co-operative go into liquidation without our knowledge yet we hold a 10 percent share in it?" he said.

"Until today, when we now face eviction, no one has accounted for the money we have been paying towards the houses we occupy - and it appears no one ever will."

According to advocates for the co-operative model of social housing, high accountability levels are required.

The Development Action Group, which did a case study on the co-operative after its collapse, concluded that its demise was exacerbated by lack of capacity development of its members.

"There should have been some back-up fund set up to take care of an eventuality such as non-payment of services and so on," the report said. "This model of housing should be about responsibility, transparency and trust of members."

For Nozzy Dlamini, who moved into the village in 2000, all hope is now lost after she was served with a notice to vacate the building.

"We are waiting for the forceful removals if needs be but we hope someone somewhere will be able to hear our story before then," she said.

"Who did the JHC buy the property from if we as owners don't know about this?"

JHC chief executive Elize Strobel said as far as the company was aware the co-operative no longer existed and its assets had been sold at an auction.

"JHC's understanding is that the co-operative defaulted on its payments to both the city and to its debt provider, NHFC, hence the liquidation," she said.

"JHC was, however, present at a meeting in February with the tenants and the liquidator where the liquidator advised former co-operative owners that they might get a payout of their equity or subsidy should there be anything left after the debt has been paid to the entities and that they should approach him directly to apply for this."

Strobel said JHC, in an effort to assist the occupants, had outlined the process regarding the renovations that were planned. These include efforts to restore the place to a safe, clean and decent state for habitation. The building upgrade will start in May and will take two months.

By then Sikrweqe and others in the village will be homeless.

Attempts to get comment from the liquidator, Michael Moloto, and the NHFC proved fruitless this week.

By Thabiso Thakali
The Saturday Star 13/03/10e1

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