Finance minister Trevor Manuel has asked the National Treasury to track a R5 low-cost housing surcharge that has been deducted from homeowners for the past 15 years.

More than R1-billion was thought to have been accumulated in the fund.

Opposition parties believe the fund has been forgotten by the government.

Asking the question in parliament, Freedom Front Plus (FF(43)+) MP Pieter Groenewald expressed concern that “somewhere there was more than a R1-billion lying around that government could be using to build houses”.

“This was the reason the fund was established in 1990 by the former government,” Groenewald said.

He said the previous government had decided to subtract R5 in terms of the Usury Act from homeowners to create a pool of R3,5-billion to assist low-cost housing schemes.

Groenewald asked Manuel in a written question to disclose the details and estimated amount thought to have been deducted over the years without home-owners being aware of it.

He also asked if the money from the scheme had been paid to banks for risk reduction purposes.

Responding, Manuel said he had only recently been made aware of the scheme but said the money had not been used for risk reduction but as a compliance levy.

He would not comment on the amount thought to have already been paid into the scheme.

Manuel said the national treasury would “engage the banks on this matter”.

This article was originally published on page 2 of Cape Argus on December 19, 2005

Source: Independent Online (IOL)
URL: http://www.iol.co.za/index.php?set_id=1&click…/p>