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SELECT COMMITTEE ON PUBLIC SERVICES PRESENTATION ON THE 2010/2011 DEPARTMENTAL ANNUAL REPORT

SELECT COMMITTEE ON PUBLIC SERVICES PRESENTATION ON THE 2010/2011 DEPARTMENTAL ANNUAL REPORT.

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SELECT COMMITTEE ON PUBLIC SERVICES PRESENTATION ON THE 2010/2011 DEPARTMENTAL ANNUAL REPORT

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  1. SELECT COMMITTEE ON PUBLIC SERVICES PRESENTATION ON THE 2010/2011 DEPARTMENTAL ANNUAL REPORT PCMS GENERAL: Doc # 382215

  2. Contents1. Introduction and overview 2. Human Resources Management3. Legal and Governance3. Research, Monitoring, Evaluation and Capacity Building Support4. Priority Project Support5. Sanitation Programme6. Intergovernmental Relations and Stakeholder Management7. Human Settlements Entities Summary8. Financial Report9. Challenges10.Proposed Interventions Doc Id: 382215

  3. Introduction and Overview Doc Id: 382215

  4. Introduction and Overview • In terms of financial management the Department has received an unqualified audit report. • The matters of emphasis will receive attention more particularly the matter of departmental performance management and reporting. • The Outcome Based Performance Management introduced by Cabinet came into place and required substantial readjustment in how we work and perform as a Department • The Department was “internal” focused and there is a clear need for the Department to take its place as the leader and driver of ensuring the facilitation of sustainable human settlements and improving household quality of life. • A Departmental Turn-Around Strategy was commenced with in order to ensure the mandate change from “housing to human settlements” development is implemented and achieved. Doc Id: 382215

  5. Introduction and Overview • A key issue is that the Departmental monitoring and reporting programme is weak and will be strengthened in the turn-around. • The lack of appropriate programme and project management capacity at the provinces and municipalities is a matter which clearly is reflected in performance and measurement of the outcomes. • A number of policy, planning, funding and implementation gaps have been identified including data collection and integrity, value for money, improved performance of the grants and subsidy instruments and steps taken to close the gaps. • Governance and compliance gaps will also be closed, improved and strengthened and this includes the entities until control of the Department and Minister. • The strengthening of policy responsiveness is also a matter for critical action and intervention including cooperative housing. Doc Id: 382215

  6. Human Resources Management Doc Id: 382215

  7. Personnel Employed and Vacancies Doc Id: 382215

  8. Annual Staff Turnover Rate Doc Id: 382215

  9. Staff Turnover Rate Doc Id: 382215

  10. Performance Rewards Doc Id: 382215

  11. Labour Relations Management Doc Id: 382215

  12. Training & Development Doc Id: 382215

  13. Legal and Governance Doc Id: 382215

  14. Legal Matters • Sectional Titles Schemes Management Act, 2011 was promulgated; • Community Schemes Ombud Service Act, 2011 was promulgated; • Rental Housing Amendment Bill was submitted to Cabinet for approval to introduce in Parliament; • The Department was a party in the Makhaza case where the City of Cape Town was ordered to build and closed the unenclosed toilets; • The Department held a watching brief in the Blue Moonlight case where the Joburg City’s differentiated approach to provision of emergency housing measures was declared to be unconstitutional; • The drafting of the regulations for the SHRA commenced. Doc Id: 382215

  15. Legal Matters • Sectional Titles Schemes Management Act, 2011 was promulgated; • Community Schemes Ombud Service Act, 2011 was promulgated; • Rental Housing Amendment Bill was submitted to Cabinet for approval to introduce in Parliament; • The Department was a party in the Makhaza case where the City of Cape Town was ordered to build and closed the unenclosed toilets; • The Department held a watching brief in the Blue Moonlight case where the Joburg City’s differentiated approach to provision of emergency housing measures was declared to be unconstitutional; • The drafting of the regulations for the SHRA commenced. Doc Id: 382215

  16. Special Investigations The progress on matters under investigation by Special Investigating Unit (SIU) in terms of the Presidential proclamation issued for the 2010/ 2011 financial year are furnished below: Municipal Employees • 401 municipal employees were arrested and 334 court cases were finalized. • 860 acknowledgements of debt to the value of R8.2 million were signed by municipal employees who committed fraud in terms of the National Subsidy Programme. • The relevant Provincial Departments are managing disciplinary cases as maybe required. Doc Id: 382215

  17. Special Investigations Government Employees • A total of 936 government officials were arrested and 871 were convicted of offences related to the National Subsidy Programme - The sentences handed down include suspended sentences and with conditions to repay subsidy amounts. • 1615 acknowledgements of debt to the value of R21.7 million were signed by civil servants who defrauded the Department and/or Provinces. • The department has to date recovered a total amount of R19 million. This figure is a consolidation of both government and municipal employees. Doc Id: 382215

  18. Research, Monitoring, Evaluation and Capacity Building Support Doc Id: 382215

  19. The Research Programme The Research Programme for the period included the following: • Economic Impact of Government Housing Programmes in low cost housing construction • Assessment of the performance of government subsidised housing as an asset • The costs of building an informal dwelling in informal settlements • Understanding beneficiaries’ perceptions on alternative technologies: Doc Id: 382215

  20. The Monitoring and Evaluation Unit The Unit conducted the following in respect of monitoring and evaluation: • The physical verification of project performance done in 285 projects in all Provinces and monitoring reports completed • An Impact Assessment Study of the Upgrading of Informal Settlements Programme in Limpopo, Free State and Gauteng Provinces was completed • Specific physical monitoring done and reports produced on projects in Matatiele, Mount Frere, Mount Ayliff, Flagstaff and Jansenville in Eastern Cape • The unit prepared and submitted a progress report on the development of a Human Settlement Index • The unit prepared and submitted quarterly POA Summary Reports and Cabinet Memorandum regarding the performance of Outcome 8 and updated the POA System accordingly. Doc Id: 382215

  21. Capacity Building Support • Two hundred and eight one (281) previously disadvantaged learners were awarded scholarships to study towards human settlements qualifications • Four provinces were supported to effectively implement the South African Cuban Technical Support Programme • Hands on support was provided to all provinces in developing credible provincial capacity development business plans • Human Settlements specific training programmes were conducted and 998 councillors,officials and community members were reached • 30 000 beneficiaries were reached through the human settlements consumer education programmes sessions and print material Doc Id: 382215

  22. Priority Projects Support Doc Id: 382215

  23. Priority Projects Support Doc Id: 382215

  24. Priority Projects Support Doc Id: 382215

  25. Priority Project Support Doc Id: 382215

  26. Sanitation Programme Doc Id: 382215

  27. Sanitation Unit Doc Id: 382215

  28. Intergovernmental Relations and Stakeholder Management Doc Id: 382215

  29. Intergovernmental Relations • Eight municipalities were recommended for accreditation to Level 1 & 2, • Six (6) Metropolitan Municipalities; and • Two (2) District Municipalities in the Northern Cape. • The Municipal Capacity and Compliance Assessment Panel (MCCAP) has been re-established with two key outputs : • To assess and determine state of readiness for the priority municipalities to assume level one and two accreditation functions; and • To facilitate and manage the post accreditation transitional process. Doc Id: 382215

  30. Intergovernmental Relations • The Department has in place a Technical MinMec as well as a MinMec. • The Implementation Forum with a Technical component has been established. • A Joint MinMec with CoGTA was held as well as a Joint MinMec with Water Affairs and CoGTA. • A Special Presidential Coordinating Council was convened. • Delivery Agreements on Outcome 8 were concluded with all Provinces as well as with the Ministers’ of Rural Development and Land Reform, Cooperative Governance and Public Enterprises. Doc Id: 382215

  31. Human Settlements Entities Summary Doc Id: 382215

  32. National Urban Reconstruction and Housing Agency (NURCHA) • The Department authorized a loan of R75m approved from Cadiz as well as recapitalization of NURCHA in the amount of R300m • Contractor Training and Development Programme completed • The value of loans disbursed under the affordable housing for houses & sites serviced is R84.9 million • The number of houses built and sites serviced under the affordable housing programme are 2092. • 33 projects under the infrastructure and community programme were completed during the period review. Doc Id: 382215

  33. Rural Housing Loan Fund (RHLF) • The Department approved the recapitalization of the Fund to the value of R49m • Number of loans disbursed : 40 289 against target of 44 933 • Value of loans disbursed is R113.6m against target of R112m • Total disbursements of R224.4m against target of R202m Doc Id: 382215

  34. National Housing Finance Corporation (NHFC) • The Mortgage Default Insurance Program was approved by the MinMec in November 2010. • The Department supported the approval of an agreement with the European Investment Bank for the rand equivalent of EUR 30 million. • An agreement with Old Mutual Life Assurance Company of South Africa and its BEE Partners to participate in an Affordable Housing Fund with initial funding of R900 million to finance the development and sale of 25 000 affordable units. • The Trust for Urban Housing Finance (TUHF), loan portfolio reached more than R 1bn mark (R 1.2bn). • The distressed clients’ turnaround and collection recovery strategy was successfully implemented. Doc Id: 382215

  35. Housing Development Agency (HDA) • Seven Implementation Protocols have been signed with the provincial governments of Limpopo, Free State, Western Cape, Eastern Cape and the City of Tshwane. • In excess of 33 000 hectares of state land was identified for evaluation for release for human settlements development focused on the Outcome 8 which requires the release of 6 250 hectares of public land • A Joint Coordinating Committee on State Land Release has been established by the Department with the HDA as secretariat to manage the requirements of Output Three of the Delivery Agreement. Doc Id: 382215

  36. A policy outlining the criteria for identifying land, and a procedure for the transfer of state-owned land to the Department and/or HDA has been finalised with the relevant state departments. • In Limpopo the HDA has taken transfer of 72 hectares of land in Bela Bela, acquired on behalf of the Limpopo Department of Local Government and Housing, for human settlements development Doc Id: 382215

  37. Social Housing Registry Authority (SHRA) Social Housing Regulatory Programme (“SHORP”) • A total of eighteen Social Housing Institutions were accreditated Social Housing Investment Program (“SHIP”) • A Call for proposal for SHIP II was issued and in summary, a total of 11 242 units were applied for with a budget requirement of R1,2 billion; • Launched the Emerald Sky, TAU Village and Drommedaris Projects • Facilitated the delivery 1050 Social Housing units; • Implemented the regulatory programme which assisted the SHRA in identifying some policy and legislative challenges with respect to the current program. Doc Id: 382215

  38. National Home Builders Registration Council (NHBRC) Doc Id: 382215

  39. Doc Id: 382215

  40. Financial Report Doc Id: 382215

  41. 2010/11 Allocation Doc Id: 382215

  42. Doc Id: 382215

  43. Adjustments • A rollover amounting to R82,678 million was approved as follows: • Programme 1: Administration :R7,1 million • R1,9 million for the renewal of Microsoft licenses delayed due to outstanding documents from SITA. The renewal was paid in April 2011 and R5,2 million paid for the purchasing of server which was delayed as it had to be imported. • Programme 2: Housing Policy, Research and Monitoring: R1,2 million • Outstanding payment on a contract to the value of R1,2 million. • Programme 4: Housing Development Finance: R34,9 million • This amount is for a transfer payment to the Social Housing Regulatory Authority (SHRA) for establishment Doc Id: 382215

  44. Programme 5: Strategic Relations and Governance: R7,7 million • R7,7 million is for outstanding payments on the following tenders: • Closure of Thubelisha Homes; • Business plan and establishment of SHRA; • Policy development for SHRA; and • Determination of institutional arrangement and establishment of Human Settlements Development Finance Institution. • In addition Treasury approved an amount of R31.5 million for outstanding sanitation expenditure not provided for in the Department’s 2010/11 budget allocation Doc Id: 382215

  45. Virements approved • R27 million required to fund the Special Investigation Unit (SIU) for an audit in the provinces. This Audit is an extension for the expanded mandate to the current agreement between the Department and the SIU to provide for Proclamation R7 of 2007. • R14,4 million was to fund the appointment of a services provider to develop and facilitate a turnaround strategy for the Department. • R34 million to assist Servcon with its outstanding income tax liability. • R7,6 million required to fund the Servcon closure process which was approved after the end of the previous financial year and transferred could not be effected. Doc Id: 382215

  46. Expenditure per Programme - 31 March 2011 Doc Id: 382215

  47. Total Departmental Expenditure as at 31 Mar 2011 Doc Id: 382215

  48. Expenditure per Economic Classification - 31 March 2011 Doc Id: 382215

  49. Human Settlements Development Grant Allocation Doc Id: 382215

  50. Human Settlements Development Grant expenditure Doc Id: 382215

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