"Banks cannot sell Government subsidised houses (RDP) to settle short term debts", Sisulu
The Minister of Human Settlements, Lindiwe Sisulu has noted with regret media reports in the Star newspaper and other media platforms that banks are auctioning Government subsidised houses affectionately known as RDP houses to settle short term or small debts.
The Minister has directed the Department of Human Settlements to do an urgent investigation on this matter and report back to her.
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", said Minister Sisulu. The Minister will meet with the leadership of the Banks to discuss this concern as soon as possible.
The inister has called on all beneficiaries of RDP houses to value their houses and not to use them as security or collateral for short term debts but to preserve them for future generations.
Issued by: Department of Human Settlements