SA Banks Warned To Stop Using RDP Houses As Collateral
South Africa’s Minister of Human Settlements, Lindiwe Sisulu warns SA banks to stop selling RDP houses in order to settle debts.
Banks cannot sell government subsidised houses to settle short-term debts, the Minister asserted.
The warning follows media reports which circulated that banks are auctioning Government RDP houses to settle small debts.
While the Minister has already directed the Department of Human Settlement to carry out an urgent investigation into the matter, she contended that Banks should not under any circumstances auction a Government subsidised house to settle any debt.
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Excerpt from the media statement the Department of Human Settlement issued in this regard read:
“The Minister of Human Settlements…has noted with regret media reports…that Banks are auctioning Government subsidised houses affectionately known as RDP houses to settle short term or small debts.
The Minister is of the view that Banks should not under any circumstances auction a Government subsidised house or RDP to settle any debt.
The Government builds and gives indigent South Africans homes. These homes do not belong to one person but to the whole family.
By auctioning this house to settle short term debts the Banks are depriving the whole family a home and in many cases, kids are left stranded.”
It was also disclosed that Minister Sisulu will meet with the leadership of SA Banks to discuss this issue as soon as possible.
In the meantime, Minister Sisulu called on all beneficiaries of RDP houses to value their houses and not use them as security or collateral for short-term debts.
She urged them to preserve the houses for the future generations.
Earlier this year, the Minister divulged that the government will soon introduce laws that will stop the sale of RDP houses.
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Then, Sisulu stressed that government RDP houses aren’t for individuals but for families. “When the government gives a house to the needy, it is for the whole family and not for one person.
“No one must sell the house. It must be passed from generation to generation,” she instructed.