Departmental Performance Report January – March 2017 Quarter 4 Mr. M Departmental Performance Report January – March 2017 Quarter 4 Mr. M. Tshangana Director-General

Overview Summary - Under-Performing Targets Progress for Quarter 4 Partially achieved targets Financials Recommendations

Summary and Mitigation of Under-Performing Targets Eradication of Title Deeds Programme The management of Title Deeds restoration project has been institutionalized Project Managers being appointed to support National intervention measures Ministerial Task Team has been activated to report and intervene in all Provinces Min-Mec resolution to support the National Minister intervention actions Upgrading of informal settlements Provincial Steercoms activated in all nine provinces National Upgrading Support Programme capacity support activated Improved HSDG and USDG programme and project alignment which will result in increased numbers of settlements and households to be targeted.

Summary and Mitigation of Under-Performing Targets Slow Progress on the Implementation of FLISP The FLiSP programme has not been prioritised by the Provinces and thus the Department will undertake a process to centralize the management and allocation of the FLiSP. Only two Provinces have undertaken a process to upscale and these include KZN and Western Cape, whilst Gauteng is in the process of finalising the arrangements, with the NHFC and its relevant implementing agents. Slow Progress in Housing the Military Veterans The Department has experienced delays in the verification process in respect of qualifying military veterans, which now has been resolved with the Department of Military Veterans. The performance of the programme it is projected will improve during the 2017/18 financial year.

Summary and Mitigation of Under-Performing Targets Slow Performance in the Social and Rental Housing Sector Progress has improved compared to 2015/2016 The SHRA governance and programme performance improvement plan is yielding results The programme and project pipeline has been streamlined with available funding Ministerial consideration is being given to the readjustment of the subsidy bands as well as RCG quantum Process of rezoning the land acquired with no development rights The National Joint Coordinating Committee on Land is now active with Transport, CoGTA DPE, RD and LR as well as Public Works being members. There is more improved monitoring on release of state land and use thereof for human settlements The HDA is tasked and capacitated to manage and ensure the rezoning target is achieved.

Governance The improvement plan for MPAT is being implemented Required Statutory Prescripts have been complied with and include: The improvement plan for MPAT is being implemented Financial Statements were prepared and submitted on time Reporting to National Treasury on payments within 30 days in terms of section 44 of the PFMA Submission of the Estimates of National Expenditure database and chapter in terms of section 26 and 27 of the PFMA The approved Human Resource Plan is being implemented, this includes the commencement of the process of filling of vacant positions

Legislation Legislative Programme Developed and activated including: Home Loan and Mortgage Disclosure Bill published for public comment Prevention of Illegal Eviction Bill in process of Sector Consultation Housing Consumer Protection Bill in process of Sector Consultation Draft Human Settlements Development Bank Bill being finalised Property Practitioners Bill published for public comment A departmental communication programme that profiles the work of the department and that of the sector has implemented

Establishment of the Human Settlements Bank The reconstitution of the Board of the NHFC has been approved This allows for improved board to be representative of RHLF, NURCHA and NHFC  The operational integration of the three entities has commenced. All the required legal, governance and regulatory approvals are in place for the operational integration A draft Bill for the establishment of Human Settlements Development Bank is being finalised for submission to Cabinet." 

Policy and Support Provinces have been supported with the approved PHP Policy guidelines to upscale the programme A draft White Paper for Human Settlements is being finalised A revised framework of the human settlement code was developed for consultation and implementation The Accreditation Framework has been revised to allow for improved accreditation and assignment framework for municipalities 41.849 land acquired during quarter 4, however there is slow progress on rezoning

Policy and Support The draft Backyard Rental Policy has been consulted upon The USDG Policy has been finalised and awaiting tabling The Social and Rental Housing income bands and grant quantum revised for approval and application

Programme Delivery Annual target Quarter 4 target Quarter 4 actual performance 2016/2017 preliminary performance MTSF Delivery 175 000 households in informal settlements upgraded 55 000 22 617 HSDG 9 915 USDG Total: 32 532 56 343 HSDG 19 658 USDG Total for the year: 76 001 157 410 HSDG 103 560 USDG Total: 260 970 500 feasibilities on informal settlements conducted 175 24 283 achieved with a variance of 217 444 Informal settlement upgrading plans developed 144 224 413 achieved with a variance of 31 115 000 subsidy housing opportunities provided 45 000 29 151 91 078 subsidy housing opportunities provided 17 396 title deeds issued for new subsidy houses 286 627 subsidy houses 69 675 title deeds issued for new subsidy houses

Programme Delivery Annual target Quarter 4 target Quarter 4 actual performance 2017/2017 preliminary performance MTSF Delivery 100 000 pre- and post 1994 title deeds issued 100 000 cumulatively 10 752 64 686 pre and post 1994 title deeds 187 175 pre and post 1994 title deeds 2 000 CRU units delivered 500 219 1 647 CRU units 5 258 6 301 Social Housing units delivered 1801 1 599 3 058 Social Housing units 8 165 3 700 private affordable rental opportunities delivered 1000 1 112 16 577 private affordable rental opportunities 16 577

Partially Achieved Targets : Quarter 4 Land rezoning Issuing of title deeds (pre and post 1994 ) including the new title deeds from 2014 Draft White Paper Master Spatial Plan 73 % of the Annual Audit Plan implemented 88% of the risk management plan implemented 68 % of the anti-fraud and corruption plan implemented 87% of the HR plan implemented

Targets Not Achieved : Quarter 4 Feasibilities in informal settlements Target on the upgrading of households not met during Quarter 4 State Finance products not revised as planned

Overall Departmental Performance

Departmental Expenditure Report

Departmental Expenditure as at 31 March 2017* Programmes Total Allocation Virement Revised Allocation Expenditure Variance % Spent From To 1. Administration 461 058 (15 000) 9 800 455 858 420 896 34 562 92.4% 2. Human Settlements Policy, Strategy and Planning 88 063 - 4 213 92 276 86 598 5 678 93.8% 3. Programme Delivery Support 216 298 (12 713) 13 700 217 285 151 743 65 942 69.7% 4. Housing Development Finance 29 930 937 29 927 993 2 944 100.0% 30 696 356 (27 713) 27 713 30 587 229 109 127 99.6% * Expenditure Subject To Auditing!

Departmental Expenditure as at 31 March 2017 Programmes Total Allocation Expenditure Variance % Spent 1. Administration 454 858 420 896 33 962 92.5% Compensation of employees 216 393 194 401 21 992 89.8% Goods and services 215 377 219 629 -4 253 102.0% Of which:   Internal Audit and SIU 18 402 15 605 2 798 84.8% 2. Human Settlements Policy, Strategy and Planning 92 276 86 560 5 716 93.8% 3. Programme Delivery Support 218 285 151 743 66 542 69.5% 81 259 59 933 21 326 73.8% 124 049 82 762 41 288 66.7% National Upgrading Support Programme 41 392 33 210 8 182 80.2% Computer Services HSS 25 000 11 781 13 219 47.1% 4. Housing Development Finance 29 930 937 29 927 993 2 944 100.0% Total 30 696 356 30 587 229 109 127 99.6%

Transfer Payments as at 31 March 2017 Adjusted Allocation Expenditure Variance % Spent Grants 29 123 459 - 100% Human Settlements Development Grant 18 283 991 Urban Settlements Development Grant 10 839 468 Entities 782 395 Social Housing Regulatory Authority: Operational 36 392 Social Housing Regulatory Authority: Institutional Investment 28 083 Social Housing Regulatory Authority: Restructuring Capital Grant 424 388 Social Housing Regulatory Authority: Regulations 6 000 Community Schemes Ombuds Services 30 020 National Housing Finance Corporation 100 000 Housing Development Agency 147 512 Housing Development Agency: NUSP 10 000 Departmental Transfers 18 138 16 747 1 391 92% Mangosuthu University of Technology 3 500 Scholarship Programme 5 900 4 581 1 319 78% UN Habitat 1 924 1 923 1 Households 1 814 1 742 72 96% CSIR 5 000 Total 29 923 992 29 922 601

Human Settlements Development Grant Expenditure Performance as at 31 March 2017 Provinces Voted Funds to provinces Roll Over from 2015/16 Total Available Year to date (1 April 2016 - 31 March 2017) Expenditure :Total available % Expenditure: Total Available Unspent funds % Unspent R'000 Eastern Cape 1 991 457 4 186 1 995 643 100 - Free State 1 098 411 2 784 1 101 195 1 098 317 2 878 Gauteng 5 022 669 4 978 964 99 43 705 1 KwaZulu-Natal 3 124 702 3 123 330 1 372 Limpopo 1 208 370 394 842 1 603 212 1 517 376 95 85 836 5 Mpumalanga 1 314 645 1 302 757 11 888 Northern Cape 371 109 3 821 374 930 368 127 98 6 803 2 North West 2 151 817 1 951 247 91 200 570 9 Western Cape 2 000 811 Total 18 283 991 405 633 18 689 624 18 336 572 353 052

Work In Progress Levels Eastern Cape Work In Progress Levels Output Foundations 4 860 Wall Plate 2 390 Roof 3 843 Finishes 1 023 Total 12 116 Provinces Amount transferred Expenditure Balance/entity Units delivered R'000 Eastern Cape No transfers, Claims paid 252 455 2 248

Work In Progress Levels Accreditation support Free State Work In Progress Levels Output Foundations 246 Wall Plate 134 Finishes 9 Units completed but not counted due to various reasons 126 Total 515 Provinces Amount transferred Expenditure Balance Units delivered R'000 Free State 3 000 o Accreditation support

Work In Progress Levels Gauteng GAUTENG Work In Progress Levels Output Foundations 962 Wall Plate 1 633 Roof 539 Units completed but not counted due to uninstalled basic services 9 481 These will be included as units concluded once the FURs have been issued - Total 12 615 Transfers Amount transferred Expenditure Balance/entity Units delivered R'000 Gauteng 1 378 600 657 900 720 700 1 473

Work In Progress Levels KwaZulu-Natal Province Amount transferred Expenditure Balance Ithala Bank MV units delivered R'000 KwaZulu-Natal 100 000 1 show house Work In Progress Levels Output Foundations 3 265 Wall Plate 3 935 Total 7 200

Work In Progress Levels Limpopo Work In Progress Levels Output Foundations 1 204 Wall Plate 1 097 Roof 1 150 Total 3 451 Provinces Amount transferred Expenditure Balance Units delivered R'000 Limpopo 340 416 181 983 158 433 399

Work In Progress Levels No response received from the Province Mpumalanga MPUMALANGA Work In Progress Levels Output Foundations 1 161 Wall Plate 1 418 Roof 1 339 Finishes 767 Total 4 685 Province Amount transferred Expenditure Balance Units delivered R'000 Mpumalanga No response received from the Province

Work In Progress Levels Northern Cape NORTHERN CAPE Work In Progress Levels Output Foundations 327 Wall Plate 205 Roof 356 Total 888 Provinces Amount transferred Expenditure Balance Units delivered R'000 Northern Cape 30 578 Land acquisition & planning

Work In Progress Levels North West NORTH WEST Work In Progress Levels Output Foundations 2 317 Wall Plate 2 629 Finishes 2 799 Total 7 745 Province Amount transferred Expenditure Balance Units delivered R'000 North West No transfers made

Work In Progress Levels Western Cape WESTERN CAPE Work In Progress Levels Output Foundations 286 Wall Plate 319 Roof 212 Total 817 Province Amount transferred Expenditure Balance Units delivered R'000 Western Cape No transfers made, municipalities submit claims and payment is effected on value created

Other Programmes as at 31 March 2017 Other Milestones Other Programmes as at 31 March 2017 Programmes Annual Targets Delivery Performance Sites Units Funds Allocated Expenditure R'000 EEDBS 50 3 574 68 113 - 5 851 45 067 Rectification 3 685 331 701 4 699 459 316 OPSCAP 796 396 747 772 722 Land Hectares 308 75 639 1 528 300 422 Eradication of Title Deeds Backlog 175 964 306 000 34 250 141 912 Disaster Relief Fund 174 195 009 124 248 35 932 Total 183 705 1 772 858 47 323 1 755 371

FLISP FISP as at 31 March 2017 Province Annual Targets Delivery Performance Sites Units Funds Allocated Expenditure R'000 Eastern Cape - 203 3 249 194 8 981 Free State 80 4 800 23 1 228 Gauteng 893 56 536 1 245 21 006 KwaZulu-Natal 2 000 400 96 000 347 11 875 Limpopo 256 21 248 6 287 Mpumalanga 6 960 44 1 901 Northern Cape 30 2 182 15 678 North West 34 6 078 60 3 301 Western Cape 1 161 58 050 755 36 069 Total 3 137 255 103 2 689 85 326

Rectification as at 31 March 2017 Province Annual Targets Delivery Performance Units Funds Allocated Expenditure R'000 Eastern Cape 1 899 170 311 2 653 295 503 KwaZulu-Natal 1 786 157 390 1 622 143 991 Limpopo - 15 3 332 Western Cape 4 000 395 8 815 Total 3 685 331 701 4 685 451 641

Other Programmes as at 31 MARCH 2017 OPSCAP Other Programmes as at 31 MARCH 2017   5% allocation Funds Allocated Units Expenditure R'000 Eastern Cape 98 119 55 132 - 38 711 Free State 52 864 46 070 Gauteng 248 992 251 133 222 477 KwaZulu-Natal 161 774 140 384 747 139 357 Limpopo 64 194 47 616 43 678 Mpumalanga 63 258 65 732 44 940 Northern Cape 19 020 18 555 29 075 North West 103 157 107 514 53 536 Western Cape 98 756 57 466 110 369 Total 910 134 796 396 728 213

Disaster Relief Programme as at 31 March 2017 DISASTER RELIEF GRANT Disaster Relief Programme as at 31 March 2017 Province Annual Targets Delivery Performance Units Funds Allocated Sites Expenditure R'000 Eastern Cape - 100 000 124 122 29 923 Gauteng 47 379 Limpopo 29 678 Mpumalanga 174 17 952 126 6 009 Total 195 009 248 35 932

Mining Towns Province Mining Towns as at 31 March 2017 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 90 1 127 158 616 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 46 648 107 15 510 Greater Tubatse 517 6 000 50 943 539 45 578 Elias Motsoaledi 240 406 12 000 50 465 488 33 127 Lephalale 1 054 975 18 000 149 646 632 592 133 086 Fetakgomo 521 3 000 50 635 35 5 961 1 294 2 910 66 000 348 337 1 761 233 262

Mining Towns Province Mining Towns as at 31 March 2017 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 4 000 784 256 215 Steve Tshwete 745 528 38 000 120 603 - 3 76 115 Thaba- Chweu 235 28 000 20 750 638 87 6 819 Total 2 745 2 739 162 000 411 278 4 638 874 339 149 Northern Cape Tsantsabane 15 11 000 12 600 588 8 474 Ga-Segonyana 360 49 13 000 24 215 96 42 8 665 Gamagara 500 10 000 11 250 5 148 Kgatelopele 4 700 222 1 360 64 36 000 52 765 684 22 509 North West Kgetleng Rivier 498 15 000 65 069 597 63 330 Madibeng 1 034 1 069 240 000 203 760 232 33 339 Moses Kotane 922 60 000 116 826 405 109 691 Rustenburg 2 070 1 639 201 000 302 126 177 565 121 093 Matlosana 780 69 000 98 708 951 1 589 322 336 3 104 4 908 585 000 786 489 1 128 3 388 649 789 Grand Total 12 520 16 970 1 073 000 2 528 174 7 172 7 192 1 403 325

URBAN SETTLEMENTS DEVELOPMENT GRANT PERFORMANCE AS AT 31 MARCH 2017

USDG PERFORMANCE – EXPENDITURE AS AT 31 MARCH 2017 USDG EXPENDITURE (01 JULY 2016 – 31 MARCH 2017) Municipality Voted Funds 1 Roll-over from 2015/16 2 Total Available Funds 3=(1+2) Transfer from Voted funds 4 Spent by Municipality 5 % Spent 7=(5÷3)   Unspent Funds 6=(3-5) % Unspent 8=(6÷3) R'000 Buffalo City 731 499 - 510 132 69.7 221 367 30.3 Nelson Mandela Bay 868 282 439 164 50.6 429 118 49.4 Mangaung 725 003 58 644 783 647 544 689 69.5 238 958 30.5 Ekurhuleni 1 890 352 815 522 43.1 1 074 830 56.9 City of Johannesburg 1 775 809 94 984 1 870 793 1 017 418 54.4 853 375 45.6 City of Tshwane 1 539 334 993 847 64.6 545 487 35.4 eThekwini 1 885 685 856 694 45.4 1 028 991 54.6 City of Cape Town 1 423 504 145 319 1 568 823 787 731 50.2 781 092 49.8 Total 10 839 468 298 947 11 138 415 5 965 197 53.6 5 173 218 46.4

Expenditure as at 31 March 2017

CONSOLIDATION – FUNDS UTILISATION AS AT 31 MARCH 2017 Description Adjusted Budget % of Total Adjusted Budget Spent by Municipality % Spent Unspent Funds % Unspent Non financial R'000 Land acquisition 410 847 3.7 327 370 79.7 83 477 20.3 Human Settlements/ Housing 3 253 791 29.2 1 636 757 50.3 1 617 034 49.7 Roads and Stormwater 1 581 788 14.2 900 113 56.9 681 675 43.1 Transport 518 900 4.7 260 120 50.1 258 780 49.9 Water and Sanitation 3 360 153 30.2 2 075 534 61.8 1 284 619 38.2 Electricity 924 252 8.3 468 706 50.7 455 546 49.3 Waste Management 98 903 0.9 56 116 56.7 42 787 43.3 Social Amenities 594 092 5.3 169 493 28.5 424 599 71.5 Title deed issued 512 - 111 21.7 401 78.3 Office of City Manager - eThekwini 193 837 1.7 100 3% USDG OPSCAP - (BCM, Mangaung, Ekurhuleni, City of Tshwane and City of Cape Town) 112 960 1.0 70 877 62.7 42 083 37.3 VAT (City of Cape Town) 88 380 0.8 Total 11 138 415 5 965 197 53.6 5 173 218 46.4 R10 billion has been invested in Human Settlements development programmes i.e. land acquisition, Housing & Human Settlements, Road and Storm water, Transport, Water, Sanitation and Electricity and R5.7 (57%) billion was spent.

BUFFALO CITY Description Adjusted Budget Spent by Municipality Unspent funds R'000 Human Settlement 131 243 104 396 26 847 Roads and Storm water 172 500 127 927 44 573 Transport 57 500 2 461 55 039 Water 47 500 47 558 - 58 Sanitation 246 634 188 024 58 610 Electricity 18 000 8 427 9 573 Waste Management/ Refuse 21 955 9 759 12 196 Social Amenities (Public Spaces) 15 000 6 586 8 414 EPMO-Project Management Funding 21 167 14 994 6 173 Total 731 499 510 132 221 367

NELSON MANDELA BAY Description Adjusted Budget Spent by Municipality Unspent funds R'000 Human Settlements 229 254 105 344 123 910 Roads, Storm water and Transportation 89 650 45 365 44 285 Water Service 192 718 111 133 81 585 Sanitation Service 337 440 158 102 179 338 Electricity 19 220 - Total 868 282 439 164 429 118

MANGAUNG Description Adjusted Budget Spent by Municipality Unspent funds R'000 Human Settlement and Housing 61 291 46 334 14 957 Roads and Storm water 289 195 164 039 125 156 Water Services 217 475 150 569 66 906 Sanitation 154 224 157 193 - 2 969 Waste management 14 139 4 126 10 013 Social Amenities, Economic and Rural Development Programmes 40 323 20 790 19 533 3% USDG OPSCAP 7 000 1 638 5 362 Total 783 647 544 689 238 958

EKURHULENI Description Adjusted Budget Spent by Municipality Unspent funds R'000 Land Banking & Property acquisition 150 000 90 166 59 834 Housing 624 040 207 901 416 139 Roads and Stormwater 159 030 79 944 79 086 Transport 31 257 16 916 14 341 Water and Sanitation 611 182 266 150 345 032 Electricity 184 000 75 884 108 116 Waste Management - Refuse Removal 46 000 30 031 15 969 Social Amenities 78 043 48 530 29 513 OPSCAP - Capacity 6 800 - Total 1 890 352 815 522 1 074 830

CITY OF JOHANNESBURG Description Adjusted Budget Spent by Municipality Unspent funds R'000 Land Acquisition 10 149 3 010 7 139 Housing and Human Settlements 1 001 458 644 404 357 054 Roads 445 644 184 120 261 524 Water 70 650 39 812 30 838 Sanitation 6 300 - Electricity 223 763 133 991 89 772 Social Amenities (Sports,Recreation & Arts) 112 829 12 081 100 748 Total 1 870 793 1 017 418 853 375

CITY OF TSHWANE Description Adjusted Budget Spent by Municipality Unspent funds R'000 Land Acquisition 30 971 30 970 1 Housing & Human Settlements 506 733 355 378 151 355 Roads and Transport 318 335 255 829 62 506 Water & Sanitation 384 450 187 617 196 833 Electricity 252 665 117 873 134 792 3% USDG OPSCAP 46 180 - Total 1 539 334 993 847 545 487

ETHEKWINI Description Adjusted Budget Spent by Municipality Unspent funds R'000 Land acquisition 45 000 28 497 16 503 Housing 385 900 75 972 309 928 Roads and storm water 107 434 42 889 64 545 Ethekwini Transport Authority 122 695 63 664 59 031 Water 299 863 177 388 122 475 Sanitation 384 107 376 312 7 795 Electricity 94 248 46 637 47 611 Social Amenities 235 792 33 135 202 657 Solid Waste/ Refuse 16 809 12 200 4 609 Office of the City Manager 193 837 - Total 1 885 685 856 694 1 028 991

CITY OF CAPE TOWN Description Adjusted budget Spent by Municipality Unspent funds R'000 Land acquisition 174 727 - Human Settlements 313 872 97 028 216 844 Transport 307 448 177 079 130 369 Water and Sanitation 407 610 215 676 191 934 Electricity 132 356 66 674 65 682 Social Amenities 112 105 48 371 63 734 Title deed 512 111 401 3% USDG OPSCAP 31 813 8 065 23 748 VAT 88 380 Total 1 568 823 787 731 781 092

Overall Summary The overall reported expenditure by Provinces on the HSDG is 98% - Eastern Cape and Western Cape Provinces reported full expenditure. A total of R353 million was reported as unspent by Provinces and North West Province is the lead contributor with R200 million All the unspent funds will be subjected to roll-over processes as per Section 22 of the 2016 DORA Provinces reported a total delivery performance of 83% of housing opportunities and Limpopo and Western Cape were the only two Provinces to exceed targets. The National Department did not meet its annual target of 175 378 housing opportunities Three Provinces have reported a joint 2016/17 accrual amount of R896 million - Eastern Cape with R450 million followed by Gauteng and Free State with R278 million and R168 million respectively. The first tranche of the 2017/18 financial year was transferred on the 25 April 2017 The Business plans of Eastern Cape, Gauteng and Free State Provinces are pending approval the first tranches was not transferred on the 25 April 2017 but on or about the 08th May 2017

Recommendations It is recommended that the Committee notes the presentation detailing non-financial performance made during Quarter Four of 2016/17 It is recommended that the Committee notes the presentation detailing financial report for Quarter Four of 2016/17, pending the final audit. Note that the Qualitative Targets on Delivery are preliminary and will be subject to change in the annual report - currently in the process of being validated