1. 1

2. 2 Presentation to the Parliament Select Committee on Public Hearing on 2 & 3 November 2004 – Parliament – CAPE TOWN

3. 3 Presentation Topics Servcon’s Mandate and Role Performance to date Challenges Corrective Measures put in place Changing Environment Financial Management Way- Forward

4. 4 1.Servcon 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

5. 5 2.Performance 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

6. 6 3.Challenges 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

7. 7 4.Corrective Measures put in place 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

8. 8 5.Changing 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.

9. 9 6.Financial Management 98/9 9 99/ 00 00/ 01 01/ 02 02/ 03 03/ 04 04/ 05 05/ 06 Budget R23,6mR20,0mR26,4mR28,0MR31,6mR30,1mR32,4mR25,5m Spent R23,0mR21,7mR23,1mR26,6mR28,8mR29,7m Variance R0,6mR1,7mR3,3mR1,4MR2,8mR0,4m

10. 10 7.Way 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

11. 11 THANK YOU