DEPARTMENTAL PERFORMANCE REPORT DIRECTOR-GENERAL: M. TSHANGANA 1st QUARTER (APRIL TO JUNE 2016) DIRECTOR-GENERAL: M. TSHANGANA

Presentation Outline Policies Legislative Programme DFI Consolidation Housing Opportunities Strategic Partnerships Sector Capacity building initiatives Administration Departmental Overall Expenditure Recommendations

Policy A significant number of stakeholders consulted on the draft discussion document and include Provinces, other Sector Departments, Local Government, Banks, Academic Institutions, Entities and other non-governmental organizations. A round-table discussion on finance and human settlements was also held to enhance process and content quality

Policy Round-table discussions on planning, design and development of human settlements were convened Through the consultation process and round-table discussions, the policy discussion document was revised taking into consideration inputs and proposals made The review of the Housing code has commenced and programmes in the code are being reviewed by the department and provinces

Legislative Programme A consultation with the Department of Rural Development and Land Reform (DRDLR) on the Prevention of Illegal Eviction from an Unlawful Occupation of Land Amendment Bill, 2016 was consulted was held The required social economic impact assessment analysis was conducted on the Property Practitioner’s Bill, 2016. The DPME issued the required SEIAS certificate for the tabling of the Bill before the Social Protecion and Human Development Cluster

Legislative Programme Inputs were received into the adjudication of disputes in the Housing Consumer Protection Bill, 2016. The Bill has been submitted to the Office of the Chief State Law Advisor for a preliminary legal opinion Amendments are being prepared to the Home Loan and mortgage Disclosure Amendment Bill The CSOS and STSM have been adopted by National Assembly The Regulations will be tabled before National Council of Provinces in August 2016

Consolidation of Development Finance Institutions The Policy, Legal and Regulatory processes for the establishment of the Human Settlements Development Bank HSDB were finalised including the final draft of the policy and appointment process for the legal drafters A proposal on the appointment of the interim governance structure for the single DFI is under consideration by Minister. The required amendments to tax legislation to enable the conclusion of the buy-sell agreements to effect the consolidation of RHLF and NURCHA into NHFC.

Preliminary Housing Opportunities Of the 75 feasibilities planned to be conducted on informal settlements in quarter one, 52 feasibilities were conducted in various municipalities conducted in Breede Valley, Amathole, Knysna, Mbombela and Alfred Nzo Of the 100 Informal settlement upgrading plans planned for quarter one, and 26 Informal Settlement upgrading plans were developed in Msunduzi and Thembisile Hani Municipalities 9 279 households were upgraded 16 906 subsidy housing opportunities provided

Delivery for April – June 2016 in relation to Estimated Targets for the First Quarter Note: 2016/17 Q1 delivery figures are preliminary and is as captured on HSS (10 Aug 2016).

Delivery (April – June 2016) in relation to Annual Targets and Remainder to be Delivered to Year-End Note: 2016/17 Q1 delivery figures are preliminary and is as captured on HSS (10 Aug 2016).

Strategic Partnerships The MOUs have been drafted for the establishment of partnerships with the following mining companies : Wesizwe Bakubung-Platinum Mining Company Anglo American

Strategic Partnerships Association for universities established - with academic institutions participating in the professionalization of a Human Settlements qualification The MOA between the department and Mangosuthu University of Technology(MUT) drafted for approval and signature The University of Fort Hare Centre for Sustainable Human Settlements partnership was established, with specific focus on social facilitation, community engagement, research and capacity development

Sector Capacity Building Initiatives To date, a total of 1750 Youth received training on Artisan Development in various provinces and these include: Eastern Cape, Gauteng, Mpumalanga, Free State, KwaZulu Natal, Western Cape, Northern Cape, North West and Limpopo The department facilitated the provision of specialised professional skills including: The intake of 900 Real Estate Learnerships through the EAAB Funding more than 70 students through the departmental scholarship programme

Sector Capacity Building Initiatives Minimum 30% allocation quota of housing projects to women has been implemented within the existing government’s procurement policy framework This is demonstrated by the implementation the procurement policy framework and the allocation of projects to women contractors The allocated units in various Provinces for the programme inlcudes: 13 865 housing units in  Eastern cape 3042 housing units in Free State 2568 housing units in North West 16 557 housing units in KwaZulu Natal 896 housing units in Western Cape 5 900 housing units in Limpopo

Sector Capacity Building Initiatives 42 officials were trained on the Wits Training Course on the Housing Policy Development and Management Programme 40 Officials trained on FLISP application 41 Professionals and designated groups skilled through Short Learning Programmes 5712 beneficiaries trained on consumer education Hyperlink: Quarter 1 capacity building initiatives per province

Administration and Communication The department complied with statutory tabling and prescripts on submission of financial statements and annual report Human Resource Plan was submitted to DPSA The SMS Disclosure requirement was submitted to DPSA

Preliminary Overall Performance The overall departmental performance is 48% Most targets that have not been achieved relate to MTSF delivery targets that are cumulative Information classified as partially achieved relate to targets where substantial amount of work has been done and actual performance will be validated prior submitting the actual performance information in September 2016

Delivery Targets Not Achieved Title Deeds restoration programme Informal Settlements Upgrading Programme including the National Upgrade Support Programme Affordable Rental Anti-Fraud and Corruption Strategy not approved at the time of reporting Audit Plan not approved at the time of reporting

Performance per programme (Preliminary)

DEPARTMENTAL EXPENDITURE 1st QUARTER

Expenditure by Programme: 30 June 2016 Total Allocation R' 000 Commitments Expenditure Variance % Spent 1. Administration 442 274 34 538 85 243 357 031 19% 2. Human Settlements Policy, Strategy and Planning 83 063 1 561 16 115 66 948 3. Programme Delivery Support 224 582 33 086 19 864 204 718 9% 4. Housing Development Finance 29 940 937 51 5 209 625 24 731 312 17% Total 30 690 856 69 235 5 330 846 25 360 010

Operational Expenditure by Programme: 30 June 2016 Total Allocation R' 000 Commitments Expenditure Variance % Spent 1. Administration 442 228 34 538 85 241 356 987 19% 2. Human Settlements Policy, Strategy and Planning 81 852 1 561 16 115 65 737 20% 3. Programme Delivery Support 215 227 33 086 19 736 195 491 9% 4. Housing Development Finance 25 083 51 5 269 19 814 21% Total 764 390 69 235 126 361 638 029 17%

Transfer Payments: 30 June 2016 Total Allocation Expenditure Variance % Spent Grants 29 123 459 5 151 600 23 971 859 18% Human Settlements Development Grant 18 283 991 13 132 391 28% Urban Settlements Development Grant 10 839 468 - 0% Entities 792 395 52 756 739 639 7% Social Housing Regulatory Authority: Operational 36 392 100% Social Housing Regulatory Authority: Institutional Investment 34 183 Social Housing Regulatory Authority: Restructuring Capital Grant 424 388 Social Housing Regulatory Authority: Regulations 6 000 Community Schemes Ombuds Services 23 920 16 364 7 556 68% National Housing Finance Corporation 100 000 Housing Development Agency 147 512 Housing Development Agency: NUSP 20 000 Departmental Transfers 10 612 130 10 482 1% Bursaries Scheme 9 355 121 9 234 UnHabitat 1 211 Households 46 9 37 19% Total 29 926 466 5 204 486 24 721 980 17%

HSDG Expenditure Performance: 30 June 2016 Provinces Voted Funds Year to date (1 April 2016 - 30 June 2016) Transferred Funds Spent by Provinces Variance Spent vs. Transferred Variance Spent vs. Voted Funds Transferred as % of Voted Spent as % of Transferred Funds Spent as % of Total Available Funds R'000 Eastern Cape 1 991 457 776 622 776 623 -1 1 214 834 39 100 Free State 1 098 411 626 118 507 915 118 203 590 496 57 81 46 Gauteng 5 022 669 957 218 740 620 216 598 4 282 049 19 77 15 KwaZulu-Natal 3 124 702 1 021 726 906 628 115 098 2 218 074 33 89 29 Limpopo 1 208 370 202 555 264 963 -62 408 943 407 17 131 22 Mpumalanga 1 314 645 298 987 257 196 41 791 1 057 449 23 86 20 Northern Cape 371 109 107 731 46 135 61 596 324 974 43 12 North West 2 151 817 752 643 499 434 253 209 1 652 383 35 66 Western Cape 2 000 811 408 000 347 474 60 526 1 653 337 85 Total 18 283 991 5 151 600 4 346 988 804 612 13 937 003 28 84 24

Milestones Not Yielding New Opportunities : 30 June 2016 Some milestones not yielding new opportunities as at 30 June 2016 Programmes Annual Targets Delivery Performance Sites Units Funds Allocated Expenditure R'000 EEDBS 50 12 274 81 733 - 388 11 420 Rectification 3 685 331 701 818 140 527 OPSCAP 796 396 167 407 Land Hectares 280 hectare 75 639 65 000 Eradication of Title Deeds Backlog 304 629 4 871 2 089 Disaster Relief Fund 174 195 000 49 52 19 358 Total 330 192 125 1 785 098 6 129 405 801

Upgrading of Informal Settlements in Mining Towns Province Mining Towns Area Annual Targets   Delivery Performance Sites Units Funds Allocated (Gazetted) Funds Allocated (As per BP Expenditure R'000 Free State Matjhabeng 967 2 208 101 000 245 243 602 103 499 Total Gauteng Merafong City 935 986 26 000 166 533 Randfontein 33 000 10 711 Westonaria 1 000 1 787 44 000 299 069 Mogale City 1 115 1 368 20 000 207 749 3 050 4 141 123 000 684 062 Limpopo Thabazimbi 491 27 000 46 648 30 1 963 Greater Tubatse 517 6 000 50 943 182 10 008 Elias Motsoaledi 240 406 12 000 50 465 138 12 919 Lephalale 1 054 975 18 000 149 646 235 17 919 Fetakgomo 521 3 000 50 635 35 5 961 1 294 2 910 66 000 348 337 620 48 770

Upgrading of Informal Settlements in Mining Towns Province Mining Towns Area Annual Targets   Delivery Performance Sites Units Funds Allocated (Gazetted) Funds Allocated (As per BP Expenditure R'000 Mpumalanga Emalahleni 2 000 1 976 96 000 269 925 1 500 160 89 782 Steve Tshwete 745 528 38 000 120 603 52 601 Thaba- Chweu 235 28 000 20 750 68 1 853 Total 2 745 2 739 162 000 411 278 228 144 236 Northern Cape Tsantsabane 15 11 000 12 600 1 970 Ga-Segonyana 360 49 13 000 24 215 42 1 223 Gamagara 500 10 000 11 250 Kgatelopele 4 700 1 360 64 36 000 52 765 3 193 North West Kgetleng Rivier 498 15 000 65 069 121 19 234 Madibeng 1 034 1 069 240 000 203 760 137 8 631 Moses Kotane 922 60 000 116 826 231 44 532 Rustenburg 2 070 1 639 201 000 302 126 246 47 792 Matlosana 780 69 000 98 708 602 66 097 3 104 4 908 585 000 786 489 1 337 186 286 Grand Total 12 520 16 970 1 073 000 2 528 174 2 829 485 984

Finance Linked Individual Subsidies Programme (FLISP) Report as at 30 June 2016 Province Annual Targets Delivery Performance Sites Units Funds Allocated Expenditure R'000 Eastern Cape - 203 3 249 75 3 344 Free State 80 4 800 Gauteng 893 56 319 KwaZulu-Natal 2 000 400 96 000 70 3 280 Limpopo 156 12 498 Mpumalanga 6 960 Northern Cape 30 2 182 5 160 North West 34 6 078 17 913 Western Cape 1 161 58 050 154 3 628 Total 3 037 246 136 321 11 325

Rectification Report as at 30 June 2016 Province Annual Targets Delivery Performance Sites Units Funds Allocated Expenditure R'000 Eastern Cape - 1 899 170 311 591 111 146 KwaZulu-Natal 1 786 157 390 225 29 381 Western Cape 4 000 Total 3 685 331 701 816 140 527

Operational Capital Budget Report as at 30 June 2016  Province 5% allocation Funds Allocated Expenditure R'000 Eastern Cape 98 119 55 132 10 085 Free State 52 864 33 614 Gauteng 248 992 251 133 58 520 KwaZulu-Natal 161 774 140 384 25 002 Limpopo 64 194 47 616 50 Mpumalanga 63 258 65 732 12 567 Northern Cape 19 020 18 555 3 843 North West 103 157 107 514 13 958 Western Cape 98 756 57 466 9 768 Total 910 134 796 396 167 407

Disaster Relief Programme Province Annual Targets Delivery Performance Sites Units Funds Allocated Expenditure R'000 Eastern Cape - 100 000 49 52 19 358 Gauteng 47 000 Limpopo 30 000 Mpumalanga 174 18 000 Total 195 000

USDG Expenditure Performance : 30 June 2016 USDG PRELIMINARY EXPENDITURE (01 JULY 2015 – 30 JUNE 2016) Municipality   Voted Funds 1 Rollover from 2014/15 2 Total Available Funds 3 (1+2) Spent by Municipality 4 % Spent against Total Available funds 5 (4÷3) Unspent from Total Available Funds 6(3-4) % Unspent against Total Available Funds 7(6÷3) R'000 Buffalo City 713 132 42 403 755 535 730 966 96.7 24 569 3.3 Nelson Mandela Bay 846 480 - 826 954 97.7 19 526 2.3 Mangaung 693 847 77 536 771 383 711 479 92.2 59 904 7.8 Ekurhuleni 1 842 887 486 507 2 329 394 2 013 668 86.4 315 726 13.6 City of Johannesburg 1 731 220 1 666 512 96.3 64 708 3.7 City of Tshwane 1 500 683 36 868 1 537 551 100 eThekwini 1 838 336 City of Cape Town 1 387 760 163 495 1 551 255 1 324 095 85.4 227 160 14.6 Total 10 554 345 806 809 11 361 154 10 649 561 93.7 711 593 6.3

MHSCG Performance - Expenditure as at 30 June 2016 Municipality Voted Funds Rollover from 2014/15 Total Available Funds Actual Transfer from Voted funds Spent by Municipality % Spent against Total Available funds % Spent against Transferred funds Unspent from Total Available Funds % Unspent against Total Available Funds 1 2 3 (1+2) 4 5 6 (5÷3) 7 (5÷4) 8 (3-5) 9 (8÷3)   R'000 Buffalo City 9 253 - 2 983 32.2 6 270 67.8 Nelson Mandela Bay 9 847 23 235 33 082 15 129 45.7 153.6 17 953 54.3 Mangaung 9 206 4 650 50.5 4 556 49.5 Ekurhuleni 14 313 50 818 65 131 19 460 29.9 136.0 45 671 70.1 City of Johannesburg 16 505 59 573 76 078 16 121 21.2 97.7 59 957 78.8 City of Tshwane 12 831 16 420 29 251 100.0 228.0 eThekwini 14 342 39 980 54 322 27 872 51.3 194.3 26 450 48.7 City of Cape Town 13 703 31 580 45 283 19 209 42.4 140.2 26 074 57.6 Total 100 000 221 606 321 606 134 675 41.9 134.7 186 931 58.1

Consolidated – Non-Financial Performance as at 30 June 2016 Category Description Total Available Funds % of Voted Funds Spent By Municipalities Unspent Funds % Spent R'000 Capacity Compensation of Employees/ Salaries 112 292 34.9 54 491 57 801 48.5 Training of Staff 15 991 5.0 12 581 3 410 78.7 Workshops 400 0.1 57 343 14.3 Consultants 74 836 23.3 48 182 26 654 64.4 Professional / Technical Sevices 22 980 7.1 3 511 19 469 15.3 Interim Capacity (Fixed term contracts) 13 336 4.1 3 368 9 968 25.3 Research 10 701 3.3 - 0.0 Legal costs 1700 0.5   Support Rental - External / Buildings 1 352 0.4 479 873 35.4 Risk Management 15 028 4.7 953 14 075 6.3 Management plan/business processes 1 769 0.6 1 486 283 84.0 Functional Planning 23 442 7.3 5 417 18 025 23.1 Operational Costs 435 381 54 87.6 Office Equipment 11 096 3.5 3 703 7 393 33.4 Systems 16 248 5.1 66 16 182 Total 321 606 100 134 675 186 931 41.9

Recommendations It is recommended that the Committee notes the presentation on preliminary performance information and related expenditure

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