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STRUCTURE OF THE PRESENTATION

DEPARTMENT OF HUMAN SETTLEMENTS ANNUAL PERFORMANCE REPORT FOR THE FINANCIAL YEAR 2012/13 DIRECTOR-GENERAL: T ZULU. STRUCTURE OF THE PRESENTATION. Performance of the National Department as per Approved Annual Performance Plans 2012/13 Departmental Expenditure vs Performance (Targets/Outcomes)

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STRUCTURE OF THE PRESENTATION

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  1. DEPARTMENT OF HUMAN SETTLEMENTS ANNUAL PERFORMANCE REPORT FOR THE FINANCIAL YEAR 2012/13 DIRECTOR-GENERAL: T ZULU

  2. STRUCTURE OF THE PRESENTATION • Performance of the National Department as per Approved Annual Performance Plans 2012/13 • Departmental Expenditure vs Performance (Targets/Outcomes) • Sector Performance 3.1 Communication and Outreach key 3.2 Delivery Agreement (Outcome 8) 3.3 Job Creation 3.4 Accreditation of Municipalities • Financial issues • Responses to Audited Outcomes / Action Plan

  3. ANNUAL DEPARTMENTAL PERFORMANCE (APRIL 2012 – END MARCH 2013) During the 2012/13 financial year we marked the third financial year in which we existed as the department of human settlements and cemented the outcome based approach in line with the National Development Plan. The Department has made reasonable strides and progress in setting the delivery framework and systems for the achievement of outcome 8 targets. In the Informal Settlement Upgrading Progamme we have improved outputs and have to date provided nearly 190 000 households with upgraded services and secure tenure.

  4. To ensure that households in the affordable sector increased their ability to access adequate housing, the National Housing Finance Corporation has commenced with the necessary work to activate the Mortgage Default insurance programme. • The department has also revised the finance linked individual subsidy programme to improve the ability of households in the income category R3 501-R15 000 to access mortgage finance for housing thus increasing access to housing finance and the provision of shelter and basic services. • The management of the Urban Settlement Grant continued to receive attention in the devolution of powers to the local sphere of government.

  5. The department went on a massive recruitment drive to implement the turn-around strategy aimed at repositioning the Organization to better discharge its responsibilities in providing integrated and sustainable human settlements. • The new organizational structure was implemented in line with the approved strategic plan. • Employee development plans in the context of the performance management system continued to receive attention so as to give meaning to the Departmental Strategy. • These successes reflect tireless efforts by all stakeholders in the human settlement sector to respond to the challenge of working differently and better. This annual report accounts on this success as implemented through each programme in the Department.

  6. OVERVIEW OF DEPARTMENTAL PERFORMANCE(APRIL 2012 – END MARCH 2013) • The overall achievement by the National Department of Human Settlements during the financial year 2012/13 is fifty seven percent (57%). • Out of one hundred and twenty-eight (128) targets which were planned for the period under review, seventy three (73) targets were achieved whilst fifty five (55) targets were not achieved.

  7. Performance of the National Department as per Approved Annual Performance Plans 2012/13

  8. DEPARTMENTAL EXPENDITURE VS. PERFORMANCE (TARGETS)

  9. NATIONAL DEPARTMENT OF HUMAN SETTLEMENTS 2012/13QUARTER AND ANNUAL PERFORMANCE AVERAGE

  10. COMMUNICATION AND OUTREACH For the 2012/2013 period, the following Departmental stakeholder outreach programmes were facilitated and implemented-: • The Masimong 4 CRU project was launched on 20th June 2012. • Govan Mbeki Human Settlements Awards • Budget vote 2012 • WUF Consultative Workshop • Youth build 2012 on 14 May 2012 • Estate Agency Affairs (EAAB Summit) 31 July 2012 • Mantheding Project Launch 24 July 2012 • Construction Sector Breakfast 02 Aug 2012 • Presidential Visit To Sweetwaters And Bekkersdal – 10 Aug2012 • Tlokwe Cru Launch + Municipal Accreditation 10 Aug 2012 • Women’s Build House Handover Closing Ceremony 30 Aug 2012 • Fleurhof Intergrated Human Settlement Development 20 Sept 2012

  11. COMMUNICATION AND OUTREACH CONT • Bothasig Gardens Social Housing project • Cornubia Integrated Housing development Project Launch • World Toilet Summit • Lephalale SOD Turning Ceremony; • World Urban Forum Report back session • Benguela Delegation Visit To Cornubia – 13 February 2013 • Kenyan delegation visit - 1 March 2013 • EAAB Board member announcement 7 March 2013 • Launch of the Chair for Education in Human Settlements 19 March 2013 • Preparation for Danida Energy Efficiency Pilot Project • Preparatory meeting for the International Conference on Architecture for 2014.

  12. STRATEGY & PLANNING • Department rendered support to Provinces and Metros in respect of Programmatic Planning as it pertains to: • Review of planning frameworks • Delivery and assessment of Business Plans and BEPPs • Oversight in terms of outcome performances of Human Settlement Grants

  13. ENHANCED PEOPLE’S HOUSING PROCESS The Programme was implemented by five (5) Provinces listed below and 6 801 units were delivered in total • Mpumalanga 2 750 • Kwa Zulu Natal 1 628 • Western Cape 1 300 • Gauteng 673 • North West 450

  14. ENHANCED PEOPLE HOUSING PROCESS • All the nine (9) Provinces were consulted and engaged on the prioritization of PHP • Capacity workshops on the enhanced PHP Policy Framework delivered in the five (5) Provinces implementing PHP • Draft Implementation Guidelines for the enhanced PHP Policy Framework presented to MINTOP • SANCO Development Institute engaged on possibility of piloting a PHP project utilizing Cooperatives • Capacity Development Workshop regarding Cooperatives held on 27-28 June 2012 in partnership with Capacity Development unit

  15. INTERNATIONAL RELATIONS PROGRAMME The following Co-operation agreements were implemented: • Agreement with Cuba on the South Africa – Cuba Technical Support Programme • Co-operation Arrangement with the Netherlands in the Field of Social/Rental Housing • Memorandum of Understanding with Denmark on a pilot project for energy-efficient low-income housing • IBSA (India, Brazil, South Africa) Working Group on Human Settlements • China assisted housing project in Thabachweu, Mpumalanga • Cities Alliance, in support of their emerging Africa Strategy • Discussions on possible or continuing co-operation with: Angola, Burundi, DRC, Uganda, Zimbabwe

  16. INTERNATIONAL RELATIONS PROGRAMME Attended the following: • 6th Session of the World Urban Forum in Naples, Italy • BRICS Summit dialogue on sustainable urbanisation, Delhi, India • BRICS Urbanisation Forum in Delhi, India • International Conference on “Making Slums History: A Challenge for 2020”, Rabat, Morocco • 4th African Ministerial Conference on Housing and Urban Development , Nairobi, Kenya

  17. INTERNATIONAL RELATIONS PROGRAMME The Department received the following delegations: • Technical visit by the Botswana Ministry of Lands and Housing • Visit by the Deputy Minister of Regional and Local Government, Housing and Rural Development of Namibia Conducted the following visits: • Visit to Rwanda by Deputy Minister of Human Settlements • Visit to the Brookings Institute, USA

  18. STAKEHOLDER AND IGR PROGRAMME • The Govan Mbeki Human Settlements Awards Framework Document was reviewed in July 2012 and subsequently approved and endorsed by the Technical Minmec • The 2012 Govan Mbeki Human Settlements Awards were successfully implemented on the 31 May 2012. • The Province of the year was awarded to North West. • The Metropolitan Municipality of the year was awarded to Ethekweni.

  19. STAKEHOLDER AND IGR PROGRAMME The following Stakeholders were engaged-: • Cooperative Government and Traditional Affairs (Cogta); • National Treasury (Cities Support Programme); • Department of Mineral Resources; • Department of Science and Technology; • NURCHA, and • National Housing Finance Cooperation • Private Sector Stakeholders engaged for sponsorship and preparation of alternative technology.

  20. STAKEHOLDER AND IGR PROGRAMME • In the year under review, significant strides were made in the coordination of the government’s Programme of Action between key sector partners. The Department has worked closely with the Departments of; • Rural Development and Land Reform (RD&LR) which is responsible for Outcome 9 – viz. Cabinet’s 23 Prioritised Rural District Municipalities; and • Cooperative Governance and Traditional Affairs (COGTA) which is responsible for Outcome 7 – viz access to basic services and their Local Government Turnaround Strategy (LGTAS) programme in 108 poorly performing municipalities. A significant feature of the intergovernmental relationship with both COGTA and RD&LR has been the establishment of quarterly reporting regime where the NDHS provides key housing and sanitation progress information in support of their respective Delivery Agreement targets. • Directorate has developed the concept document and roll out plan towards the establishment of the National Human Settlements and Urban Forum (NHSUF).This process will allow all stakeholders to meaningfully participate in the ongoing debates and jointly develop policies and approaches pertaining to South Africa’s human settlements development and urban development policies and programmes

  21. STAKEHOLDER AND IGR PROGRAMME • Development of a project plan and concept note for the green paper process as approved by DG, EMT, MinTOP, Tech MinMEC, MinMEC and Portfolio Committee on Human Settlements; • Consultative session with the Portfolio Committee, Provincial Heads of Department, Metropolitan Municipalities on the Human Settlements Policies; • Consultative session on Pipeline Planning with human settlements practitioners to open a platform for robust engagement and dialogue on project pipeline planning; • Process towards the development of a National Disaster Management Plan for the sector.

  22. OUTCOME 8 – CREATE SUSTAINABLE HUMAN SETTLEMENTS AND IMPROVED QUALITY OF HOUSEHOLD LIFE

  23. UPGRADING OF INFORMAL SETTLEMENTS • Actual number of households provided with upgraded services as on 31 March 2013: 177 598 households • Represents 44,4% of 2014 target • Including USDG: Increased to 230 111 households • Represents 57,5%% of 2014 target • Over same period Provinces delivered 182 065 formal housing units to households in informal settlements

  24. OUTPUT 1: UPGRADING OF INFORMAL SETTLEMENTS

  25. OUTPUT 1: UPGRADING OF INFORMAL SETTLEMENTS: USDG

  26. OUTCOME 8 : UPGRADING OF INFORMAL SETTLEMENTS (INCLUDING USDG)

  27. NATIONAL UPGRADING SUPPORT PROGRAMME • Technical assistance to Provinces and Municipalities: Upgrading of informal settlements: • EC: Buffalo City: To be advertised in Tender Bulletin, NMM: Negotiations in advanced stage; • FS: Categorisation and mapping under way in six NUSP Municipalities; • GT: Tender evaluation completed for Ekurhuleni, COJ, Mogale City and City of Tshwane; Emfuleni to be re-advertised; • KZN: Assistance concluded with Ladysmith, Newcastle and Mzundusi, Proposal agreed with Umhlathuze,

  28. NATIONAL UPGRADING SUPPORT PROGRAMME • NUSP (continued..): • KZN : Response on proposal awaited from Ethekweni • LP: Developing of specific upgrading plans underway; • MP: still waiting for response from PHSD – NUSP interacting with Municipalities directly; • NC: Draft SLA’s submitted for approval; • NW: TOR for Rustenburg approved and proposals submitted to Tlokwe and Madibeng; • WC: TOR for George advertised and draft SLA’s for COCT and Drakenstein submitted for approval

  29. INCREASED PROVISION OF WELL-LOCATED RENTAL ACCOMMODATION

  30. ACCREDITATION AND ASSIGNMENT OF MUNICIPALITIES Performance to date: • Level 1: 8 Municipalities and 1 District Municipality; • Level 2: 7 Metros, 3 District Municipalities and 8 Local Municipalities • Assessed and accredited Municipalities to date: 27 Municipalities • Provincial Departments of CoGTA and Human Settlements will provide coordinated capacity, expertise and technical support to municipalities that are recommended for accreditation; • Broad collaboration framework with National Treasury through Cities Support Programme has been agreed upon

  31. ACCREDITATION AND ASSIGNMENT OF MUNICIPALITIES • Each Province has been assigned with Professional Teams to assist in the facilitation, coordination and conflict resolution issues pertaining to accreditation and assignment processes.

  32. OUTPUT 3: EFFICIENT UTILISATION OF LAND FOR HUMAN SETTLEMENTS DEVELOPMENT • Actual delivery: • 69 163 ha of state land identified for assessment and 47 604 ha thereof assessed for suitability for release; • 7 477,5 ha has been released (FS, GP,KZN,LP+NW) • Land released well located for extension of existing settlements or within established town; • Land released earmarked for land tenure upgrading, integrated development or GAP market • PHSD’s (private land acquired): 10 218,9 ha

  33. OUTPUT 4: IMPROVED PROPERTY MARKET • Mortgage Default Insurance Scheme: • MDI has been submitted to the National Treasury for consideration • Finance Linked Individual Subsidy: • Revised FLISP Policy implemented on 1 April 2012; • 12 projects across the country are at different stages of implementation. • The process of accreditation of projects is on-going. • Implementation of FLISP is extended to the open market to fast track programme delivery in provinces; •  On 31 March 2013 the budget commitments for FLISP applications amounted to R42 million • Long term fixed interest rate instrument • Planned for launching in 2014 • 3

  34. PERFORMANCE : DEVELOPMENT FINANCE INSTITUTIONS: LOANS GRANTED

  35. IMPROVED PROPERTY MARKET • Stringent qualification criteria applied by banks is not promoting growth in the affordable housing; • The NDHS to engage with the Banks and encourage them to be transparent with the reasons for declining home loans; • A process of engagement with public, private, social, community and labour stakeholders are still to be arranged • Department in conjunction with DPSA is developing a policy and programme for the provision of access to finance by public servants

  36. CONSOLIDATION OF DFIS • Consolidation of DFIs makes provision for three phases: • Phase 1: Assessment of human settlements environment – completed; • Phase 2: Develop a business case - include policy and legislative amendments, operational and legal due diligence – appointment of service providers to undertake legal and operational due diligence as well as drafting of Bill being finalised and expected to commence with work in the first quarter of 2013/14; • Phase 3: Design establishment processes for new institution – will commence as soon as Phase 2 has been successfully concluded

  37. ACTIONS TAKEN TO ADDRESS CHALLENGES • A full informal settlement upgrading implementation support programme will be negotiated between the National Department, Provincial Departments and the 49 municipalities; • A process has been initiated to review completed work to identify further areas of assistance • Proposals for the revision of the CRU Policy, the Social and Rental Policy as well as the Institutional Subsidy as a package is currently being developed and will be submitted to EMT for further actions/instructions - Policy for backyard rental will form part of the aforementioned proposals;

  38. ACTIONS TAKEN TO ADDRESS CHALLENGES • Office of Disclosure developed enhanced Annual Return Reporting Format tool for disclosing of information. In addition, engagement with Banks to amend legislation to cover disclosure of unsecured loans is also underway; • Negotiations with Banks with a view to the introduction of a Human Settlements Financial Charter envisaged to commence soon – will encourage greater finance provision from private sector for low and middle income households

  39. JOB CREATION The delivery of 43,825 serviced stands and 115,131 completed houses created an estimated 59,923 job opportunities during the 2012/13 financial year.

  40. SELECTED PERFORMANCE INDICATORS AS PER 2012/2013 STRATEGIC PLAN: PROGRESS STATUS BY PPMU BRANCH • About 31 299 affordable, social and rental accommodation units were provided by December 2012 exceeding planned 25 693 units. • The total of 141 973 households were upgraded in well-located informal settlements with access to secure tenure and basic services by December 2012. This also exceeds 140 000 which was planned for 2012/13. • Technical assistance under the NUSP to prepare municipal upgrading strategies and settlement level plans have been provided to 26 municipalities while assistance for a further 17 municipalities have been negotiated. The target for the financial year was to provide technical assistance to 9 municipalities. • As of December 2012, 7 477.5 ha of land have been released. This also exceeded the planned target of 2 084 which was same as 2011/12 total. • The totals for houses completed and number of sites serviced per year are awaiting confirmation which should be received during the fourth quarter provincial reviews, to be held in May 2013.

  41. DEPARTMENTAL ADJUSTED BUDGET FOR 2012/13 FINANCIAL YEAR

  42. ADJUSTMENT ESTIMATE SUMMARY • Rollovers approved • R11 million for the leasing of office accommodation; and • R2.5 million for furniture and equipment. • Declared savings. • R138.878 million has been identified by National Treasury as a saving on the Rural Household Infrastructure grant.

  43. ADJUSTMENTS • A virement was approved to fund Servcon. • Servcon required R36.8 million as part of its closure costs and funded in Programme 5. • The following savings were used: • Prog 1: R20.5 million (Savings in SIU) . • Prog 5: R16.3 million from within prog. 5 (Savings within Management Information Services).

  44. DEPARTMENTAL EXPENDITURE PER PROGRAMME: 31 MARCH 2013

  45. OPERATIONAL EXPENDITURE:31 MARCH 2013 Note: Expenditure excludes all Transfer payments.

  46. REASONS FOR UNDERSPENDING • Non-filling of vacancies as a result of the lack of office space. • Special Investigation Unit (SIU) challenges were experienced with the SIU not providing the Department with invoices. • The leasing of additional office accommodation were not utilised as issues were not resolved with the Department of Public Works. • Within programme 3 a delay occurred in the implementation of the National Upgrading Support Programme.

  47. REASONS FOR UNDER SPENDING CONT. • The inability of SITA to provide resources at an adequate level to maintain the Housing Subsidy System (HSS) as stipulated in the SLA led to under spending within programme 5. • On Rural Household Infrastructure Grant: • The building of toilets for the 2012/13 financial year was delayed because the service providers had to finish work from the previous financial year. • As part of the Department’s intervention, additional service providers were appointed during the last quarter of the financial year to assist in finalising the projects, but at year end work was still underway.

  48. GRANTS AND TRANSFER PAYMENTS 31 MARCH 2013

  49. HUMAN SETTLEMENTS DEVELOPMENT GRANT EXPENDITURE: 31 MARCH 2013

  50. DELIVERY PERFORMANCE

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