Departmental Second Quarter Preliminary Performance Report 2018/19

1. Departmental Second Quarter Preliminary Performance Report 2018/19 Portfolio Committee Presentation 27 November 2018

2. Presentation Outline 1. Quarter 2 Preliminary Performance as per approved Annual Performance Plan 2018/2019 2. Progress on MTSF Target Performance 3. Expenditure Report and Human and Urban Settlements Developments Grants as at 30 September 2018 4. Areas that Require Attention for Improved Performance and Actions Implemented to Improve Performance 5. Recommendations

3. Governance and Administration • There was 70% compliance with statutory tabling and prescripts. The compliance to statutory prescripts include submission of the following: • First Departmental Strategic and Annual Performance Plans for 2019/20 to the oversight bodies • Financial statements to the National Treasury • Departmental Quarterly Performance Reports to the oversight bodies • Quarterly Training and Expenditure Report to PSETA by 30 September • Employee Performance information captured on PERSAL to DPSA by 31 July • Compliance Report on Performance Agreements of SMS to DPSA • Quarterly Integrated EHW Reporting Tool to DPSA by 31 July • Quarterly FOSAD report to DPSA by 30 September • Quarterly Financial Misconduct Report to the Public Service Commission by 30 September 2018 • Detailed Bi-annual report on grievance statistics submitted to PSC by 30 September • There were 5 invoices out of 375 which were paid after 30 days whilst compliance with invoices paid within 30 days 98,6%.

4. Governance and Administration The 76% implementation of the HR Plan includes but is not limited to the following activities: • 100% implementation of the HRA conditions of service and benefits • Analysis of exit interviews • Annual leave audit • Implementation of the approved Work Skills Plan initiatives • Convening the Public Service Women Management Week (PSWMW) session • Convening the BathoPele Change Management Engagement Programme (BPCMEP) session The following activities were not completed by the end of Quarter 2: • Finalisation of recruitment processes for vacant posts including advertising, shortlisting, interviews, qualification verifications, appointments • PERSAL update on vacancy reduction rate • Analysis of Quarterly leave usage and coordination of consequence management for late leave submission • Procurement of service provider for Competencies Assessments and Skills Audits. • Coordination and submission of SMS Annual Assessment Reports • Establishment of the Task Team on Batho Pele Service Standards Pilot Project

5. Governance and Administration The following is progress on legislation and policy changes: • Human Settlements Development Bank Bill - the Business Case is in process of being finalised. • Human Settlements Bill – The Department has commenced with appointment of capacity to draf the Human Settlements Bill. • PIE Amendment Bill - A Special Legal Forum was hosted to consult and agree on the processing of steps for any review of the Act • Property Practitioners Bill: Relevant actions taken to process the Bill • Housing Consumer Protection Bill: The Minister is in process of requesting approval for the submission of the Bill for public comment. • HLAMDA Bill: The Minister is in process of obtaining for the submission of this Bill to the Parliament. Awaiting approval by the Cabinet. • Rental Housing Amendment Act Regulations: Regulations have been drafted and the next phase will be to develop the norms and standards and thereafter commence steps to have the regulations approved.

6. Intergovernmental and International Relations

7. Intergovernmental and International Relations

8. Policy and Planning Actions • The draft multi-year land assembly plan for human settlements development was compiled. The acquired land was 990.6187ha and land released, 52.7817ha. • Work commenced on the development of a framework for the policy and regulatory institutionalization of a Human Settlements Ombudsman. • The draft benchmark report on management of homelessness was compiled.

9. Programme Monitoring and Delivery Support Further actions on the assessment and categorisation of informal settlements was undertaken based on the following categories : • FULL CONVENTIONAL UPGRADE consisting of full services, top structure and formal tenure- formalization where appropriate, affordable and visible (Category A) • INCREMENTAL UPGRADE WITH ESSENTIAL SERVICES leading to eventual formalisation, where informal settlements sites are viable and appropriate but where formalisation/ full upgrading is not imminent (Category B1) • DEFERRED RELOCATION WITH EMERGENCY SERVICES for informal settlements sites where long-term formalisationis not viable or appropriate but relocation is not urgent or possible (Category B2) • IMMEDIATE RELOCATION as a last resort for settlements where there are urgent health or safety threats cannot be mitigated and an alternative relocations destination is readily available (Category C)

10. Programme Monitoring and Delivery Support • 91 Informal settlements were assessed and feasibility studies conducted in the City of Tshwane Region 2 (16), Region 3 (13), Region 4 (7), Region 5 (13), Region 6 (27) and Region 7 (15). • A further 29 feasibility studies have not been conducted mainly due to the organising and arranging of the households and socio - economic surveys and service delivery protests within the informal settlements. The remaining plans will be completed in the 3rd Quarter. • 60 Informal settlement upgrading plans were developed in Buffalo City (20), Nelson Mandela Bay (29) & City of Joburg Region F (11). • A further 65 upgrading plans have not been completed since the socio - economic surveys which need to inform the plans were still underway.

11. Programme Monitoring and Delivery Support

12. Programme Monitoring and Delivery Support

13. Programme Monitoring and Delivery Support

14. Programme Monitoring and Delivery Support Five Provinces - Eastern Cape, Gauteng, Mpumalanga, Northern Cape and Western Cape and 5 Metros (Buffalo City, City of Johannesburg, City of Tshwane, Ekurhuleni & Nelson Mandela Bay) were supported in the implementation of the informal settlements upgrading programme.

15. Programme Monitoring and Delivery Support • The Department is in the process of assisting Provinces in the delivery of 250 units in the quarter for Military Veterans. In Quarter 1, 11 houses were handed over in Chatty (Eastern Cape) and 20 houses were delivered in the Western Cape during Quarter 2. • There were 6 provinces and four metros which were supported in the implementation of the PHP policy, namely Western Cape,, Kwa Zulu Natal, Mpumalanga, North West, Gauteng, Free State and Mangaung, City of Johannesburg, Ethekwini, and City of Tshwane

16. Programme Monitoring and Delivery Support • Provinces were supported in the programme implementation of the subsidy housing programme as follows: • KwaZulu - Natal: A request for funding was received and a response was provided. • Mpumalanga and Free State: The Project Process Guide for Human Settlements Programmes on how to implement various National housing programmes was presented to the Provincial Department of Human Settlements. • Progress on the consolidation of the financial entities of the Department is that the 3 three entities are now consolidated within the NHFC. A final Business Case will be subjected to the MinTop and MinMec processes followed by a submission to the Minister for the approval of the Business Case and the accompanying Human Settlements Development Bank Bill

17. Programme Monitoring and Delivery Support • Provinces were supported in the implementation of the Title Deeds restoration programme - Pre and Post 94. • Provinces were supported in the implementation of the Title Deeds restoration programme post through the analysis of the 1st draft of the business plan on the programme.  • Within a monitoring framework 99.8% of projects monitored and verified (HSDG and USDG), that is, a total number of 1578 out of 1581 projects (HSDG = 492 and USDG = 1089). Threeof the projects implemented in Gauteng could not be verified against the PIP. This matter was taken up with the Provincial Human Settlements Department • The evaluation on the the UISP three year impact was delayed in order to ensure compliance with procurement processes.

18. Programme Monitoring and Delivery Support The Department continues to provide implementation support on the Revitalization of Distressed Mining Communities Programme and the following are activities undertaken: • Finalisation of Implementation Protocols for all the Provinces and Metros. • Conducted an assessment of the 2019/20 1st Draft Provincial Business Plans to ensure that the human Settlements priorities of municipalities with distressed mining communities have been incorporated in the draft business plans. • Provision of on-going programme planning and implementation support to all the local municipalities with distressed mining communities in line with the HSDG ring -fenced funding and confirmed municipal human settlements priorities: • Informal settlements upgrading • Conceptualisation and development of local Human Settlements Development Plans • Technical studies

19. Programme Monitoring and Delivery Support Revitilisation of Distressed Mining Communities Programme The following are the prioritised Municipalities :

20. Programme Monitoring and Delivery Support • During the period under review, the department has provided support in the implementation of Catalytic Programmebased on the following actions: • Joint Branch Management Committee Coordination • Catalytic Projects Programme Coordination • Programme Steering / Technical Coordination • Further support was provided in the implementation of Social Housing Programme and Community Residential Programmes.

21. Programme Monitoring and Delivery Support -Capacity Development • 195 Practitioners are currently trained in human settlements programmes training through the “Train the Trainer”programme in Batho Pele Change Management in human settlements delivery instead of 18. The training programmes were over-subscribed due to interest shown by the participants.

22. Programme Monitoring and Delivery Support • A total of 43 Youth received support from the scholarship programme through the payment of tuition, accommodation, books and stipend.

23. Departmental Scholarship Programme A total of 43 students received support per the following disciplines during the period under review: • 28 = Engineering • 8 = Building • 5 = Survey • 01 = Construction Studies • 01 = Architectural Technology

24. FLISP Performance

25. FLiSP Programme Constraints Matters constraining performance during the quarter under review include the following: • Availability of affordable stock • Poor credit records of people earning less than R15 000 per month • IRDP not making provision for FLISP • Private sector projects in distress • The restriction on voluntary sale of state-subsidised housing provisions of Section 10A and 10B of the Housing Act 1997 as a condition of every housing subsidy is also applicable to FLISP • Impact of constraint economic growth and • Protracted approval processes

26. Legend

28. MTSF Implementation Progress As At 30 September 2018

29. MTSF Implementation Progress As At 30 September 2018

30. MTSF Status: Upgrading Of Informal Settlements : 30 September 2018

31. MTSF Progress As At 30 September 2018: Subsidy Market

32. MTSF Progress As At 30 September 2018: Social Housing

33. MTSF Progress As At 30 September 2018: Title Deed Restoration Programme

34. MTSF Progress As At 30 September 2018: New Title Deeds

35. Departmental Expenditure Report As At 30 September 2018

36. Departmental Expenditure by Programme

37. Expenditure by Economic Classification

38. Operational Expenditure by Branch: Actual vs Projection

40. Transfer Payments

41. Human Settlements Development Grant (HSDG) As At 30 September 2018

42. Human Settlements Development Grant Expenditure (HSDG) Performance as at 30 September 2018

43. Delivery Targets % Performance on Delivery April - September 2018

44. Expenditure Correlation against Milestones as at 30 September 2018

45. Work In Progress – Top Structures

46. Urban Settlements Development Grant (USDG) Performance As At 30 September 2018

47. Urban Settlement Development Grant Expenditure (USDG) Performance As At 30 September 2018

48. Consolidated USDGFunds Utilisation As At 30 September 2018

49. Title Deeds Restoration Grant (TDRG) Expenditure Performance as at 30 September 2018.

50. Title Deeds Restoration Grant Expenditure (TDRG) Performance As At 30 September 2018