Gauteng Department of Human Settlements 2017/18 PERFORMANCE OF THE HUMAN SETTLEMENTS DEVELOPMENT GRANT (HSDG) PRESENTATION TO SELECT COMMITTEE ON APPROPRIATIONS

1. PURPOSE OF THE PRESENTATION Overview Purpose of the Presentation To present the Departmental expenditure performance on the Human Settlements Development Grant (HSDG) for the 2017/18 Financial Year. The presentation will also cover the progress made on addressing the performance challenges.

2. EXECUTIVE SUMMARY - PERFORMANCE 2017/18 FY NON-FINANCIAL PERFORMANCE The Department planned to deliver 16 965 stands and 32 064 housing units. A total of 7 910 stands and 17 558 housing units were delivered, 47% stands and 55% housing units. The variance against the annual targets amounts to 9 055 stands and 14 506 housing units. FINANCIAL PERFORMANCE During the period April 2017 - March 2018, the Department was originally allocated R5 528 050 000 for programmes and subsequently there was a downward adjustment of R150 000 000 and had an approved roll-over of R43 705 000 and consequently received R5 421 755 000 whereas expenditure for the year was R5 302 694 000. Therefore expenditure for 2017/18 financial year was 98% of the funds received with a variance of R119 061 000. Therefore, the housing opportunities created during this financial year are 25 468 (52%) whilst total expenditure is at 98% (R5 302 694 000).

3. IMPROVEMENT PLAN

3.1 MANAGING THE DELIVERY VALUE CHAIN Pipeline development USDG Alignment Municipal Serviced sites Municipal Planning Planning CFO-Supply Chain Management – Payment of Services Project Management Construction management Weekly reporting Legal Services : Contracting and litigation Beneficiary management and Public Participation Monthly Delivery Assurance Quarterly and Annual reporting Quality Assurance IT and Information Management Tittle Deeds Hand- Over houses with Title deeds

3.2 WORK PROGRAMME: FOCUS AREAS CHALLENGE ACTIONS PROGRESS Planning for project implementation Budget realignment to move funds to performing projects Review 2017/18 Business Plan Ensure better planning for the 2018/19 NHBRC projects enrolment HSDG and USDG alignment, Spatial integration Transformation objectives   Supply chain Management All outstanding supply chain management bids to be concluded. Contracts and service level agreements should be prepared while awaiting the conclusion of the supply chain management. Procurement of 2017/18 projects be concluded Appointment of PRT’s in line with Dep. new SCM process Contract Management Conclude all outstanding contracts Ensure that all contracts are enforced, and identify contractors/consultants who are not adhering to their contracts and take necessary action. Payment of Contractors A report on the status of all outstanding invoices, and identify challenges and causes of delays in payment of service providers Implement an invoice tracking system encompassing the entire value chain from the contractor submitting the invoice until payment is effected Ensure a payment system that pays within 14 days of approval of invoice

3.2 WORK PROGRAMME FOCUS AREA (Cont.) CHALLENGE ACTIONS PROGRESS Project Management Capacity Beef up in-house capital projects management capacity. Ensure weekly performance reports per project and per each contractor A weekly update on contractor, project and programme performance should be submitted to the HOD Ensure that all service providers adhere to the contracts and service level agreements   Public participation, engagement and community relations Ensure effective public participation during the planning phase of each project Undertake project profiling to anticipate any community dynamics which may negatively affect projects Ensure effective communication of delivery Work to achieve community ownership of projects Institutional Capacity Ensure proper support measures and Rescue Plan Determine project management capability in each Region, and provide support in ensuring capacity development Monitoring and Evaluation Proper and effective projects monitoring and evaluation systems Weekly reports on the performance of each region projects and contractor for all HSDG projects

3.2 WORK PROGRAMME FOCUS AREA (Cont.) CHALLENGE ACTIONS PROGRESS Misalignment of Plans Some of our projects are outside SDF prioritization areas of municipalities. This results in competing priorities with municipalities resulting in little funding being directed to GDHS projects - GDHS developments to follow municipal prioritization areas through involvement in Integrated Planning Processes of the Municipalities and alignment of plans.   Bulk infrastructure: Throughout Gauteng there are serious bulk infrastructure limitations. These threaten the continuity of almost all our projects (especially mega projects). - The responsibility of bulk infrastructure installation and upgrades is the Department of Water and Sanitation. Municipalities also responsible through the Municipal Infrastructure Grant to upgrade & maintain

3.2 WORK PROGRAMME FOCUS AREA (Cont.) CHALLENGE ACTIONS PROGRESS Misalignment of financial years between the province and local government (Municipalities), which negatively affects performance reporting for the two spheres of government Technical and Political Inter-governmental Relations Forums have assisted the two parties to identify bottle-necks with a view to addressing them as and when they arise. (E.g. Management of redemption claims)   Late signing of Implementation Protocols (IPs) by municipalities, hence the delay in the transfer of funds to municipalities Strict timeframes to be adhered to for the expedition of signing of IPs, otherwise funds may be re-directed to where they can be effectively utilised.

4. DEPARTMENTAL ANNUAL PERFORMANCE

4.1 2017/18 ANNUAL NON-FINANCIAL PERFORMANCE - PROGRAMME 3 Region Annual Target Annual Delivery % Delivery   Stands Housing Units Joburg 2 600 5 856 2 092 3 549 80% 61% Ekurhuleni 5 442 6 651 1 383 4 416 25% 66% Tshwane 1 387 6 912 3 938 0% 57% Sedibeng 3 748 4 258 1 865 2 082 50% 49% Westrand 3 788 4 425 2 570 2 457 68% 56% Head Office (Social Housing GPF) 569 Head Office (FLISP OPEN MARKET) 1 582 547 35% 1.1a Individual housing subsidies (R0 - R3 500) credit linked 2 380 Grand Total 16 965 32 064 7 910 17 558 47% 55% Annual Performance @ 47% stands @55% housing units @52% housing opportunities

4.2 FINANCIAL YEAR HOUSING OPPORTUNITIES PERFORMANCE TREND Whilst performance has dropped in percentage terms, influenced by targets set for individual years, the constant delivery trend is notable in terms of the overall outputs per financial year.

4.4 WORK IN PROGRESS – Closing balances as 31 March 2018 Region Foundation Wall Plate 90% completions/ Roof Ekurhuleni 1235 1441 1 Joburg 532 973 180 Tshwane 1024 2057 524 Sedibeng 630 736 87 Westrand 620 834 43 Total 4041 6041 835 The figures above are reflective of construction work in progress, as validated by QA inspection certificates during 2017/18 financial year. However, this work was not converted to completed housing units by close of 2017/18 financial year.

4.5 TITLE DEEDS PERFORMANCE MTSF Objective Provincial MTSF Target ACTUAL DELIVERY PROGRESS Deficit (MTSF Target) 2014/15 2015/16 2017/18 Total to date: 31/03/18 Title Deeds: Pre-1994 housing stock Post-1994 housing stock New Developments 12 808 2 690 2 746 2 812 8 248 4 560 152 903 9 603 16 166 19 522 45 291 107 612 152 301 884 151 417 CHALLENGES MITIGATION Missing beneficiaries.   Disputes among family members, where initial approved beneficiaries are deceased (parents). Some townships are not yet proclaimed. Advertisement sent out for missing beneficiaries. Discussion with the Department of Justice to issue estate of the deceased and Deeds office to registering family title deeds. The Gauteng Planning Commission has started a process with Ekurhuleni which will result in the regularized townships not yet proclaimed. GDHS has started a process of getting township establishment for all unregistered townships (this will assist in title deeds registrations). The MEC in his capacity as CoGTA MEC is dealing with matter through IGR sessions.

4.6 LIST OF UNPROCLAIMED TOWNSHIPS AND OTHER PROPERTIES TYPE OF PROPERTY LOCATION Business Stands x 23 Duduza Churches x 14 Alexandra Business Stands x 50 Daveyton Church x 1 Moroka (Soweto) Business Stands x 69 Kwa-Thema Senaoane (Soweto) Business Stand x 1 Etwatwa Extension 13 Orlando East (Soweto) Business Stands x 15 Mabuya Park Jabulani (Soweto) Business Stands x 5 Mngadi Tladi (Soweto) Monise Orlando (Soweto) Business Stands x 27 Thokoza Dhlamini (Soweto) Business Stands x 20 Tsakane Watville (Ekurhuleni) Business Stands x 4 Tshongweni Thokoza (Ekurhuleni) Business Stands x 26 Vosloorus Tsakane (Ekurhuleni) Business Stands x 35 Watville Sebokeng Unit 12 (Ekurhuleni)

4.7 LIST OF UNPROCLAIMED TOWNSHIPS AND OTHER PROPERTIES TYPE OF PROPERTY LOCATION Subdivisions/Stands x 30 Bophelong Subdivisions/Stands x 2 Thokoza Subdivisions/Stands x 31 Boipatong Subdivisions/Stands x 8 Tsakane Subdivisions/Stands x 1 Sebokeng Unit 12 Tshongweni Sebokeng Unit 14 Subdivisions/Stands x 7 Vosloorus Sebokeng Unit 10 Subdivisions/Stands x 14 Watville Subdivisions/Stands x 33 Daveyton Subdivisions/Stands x 38 Pimville Zone 5 (30), Orlando West (8) (Soweto) Subdivisions/Stands x 3 Duduza Subdivisions/Stands x 17 Kagiso (West Rand) Subdivisions/Stands x 5 Radebe Subdivisions/Stands x

Title Deeds Delivery Analysis Target for 2017/18 is 55 552, however 22 334 has been achieved which is 40% of the target Initial target was eradication of total backlog of 244 779 by end of 2018/19. However 54 423 title deeds have been registered since 2014/15 The target for 2018/19 is 31 164 so the implication is that 85 587 would be eradicated by end of 2018/19. The target for title deeds registration has been reduced to accommodated other cost drivers which were not considered in the previous business plan e.g. advertising, transfer of churches & business sites, township formalization, subdivisions, litigations and dispute resolution. The initial target to eradicate title deeds target will not be achieved and the remaining 190 356 is to be finalized in the next MTEF period It is important to fast track township registration to create pipeline for title deeds registration to individuals in order to achieve stated goals.

5. DEPARTMENTAL ANNUAL FINANCIAL PERFORMANCE

5.1 2017/18 APPROPRIATION The Department’s main appropriation was R 5, 528b and later that was adjusted downwards R 150m. The Department had an approved roll-over from the 2016/17 financial year of R 43,7m. As at 31 March 2018 the department’s actual HSDG expenditure was R 5,302b which translates to 98% actual expenditure. There was an unspent HSDG of R 119m which the Department has applied for roll-over thereof into the new financial year, the outcome of the application is still outstanding from National Treasury.

5.2 2017/18 TRANSFERS TO MUNICIPALITIES The Department holds municipalities responsible for transfers made at two fora, one at the MEC/MMC technical IGR and the other through the compulsory monthly reporting meetings; Details of transfer to municipalities are as follows: Municipality Gazetted Amount Amount Transferred Expenditure Unspent funds COJ R 292 314 710 R 292 314 731 R 144 956 146 R 147 358 585 COT R 185 740 616 R 184 101 996 R 72 574 412 R 111 527 584 COE R 51 203 000 R 51 203 160 R 9 459 769 R 41 743 391 Mogale City R 105 269 000 R 8 068 089 R 97 200 911 Merafong City R 139 701 500 R 139 701 000 R 39 714 760 R 99 986 240 RandWest City R 71 100 000 R 36 632 862 R 34 467 138 Total R 845 328 826 R 843 689 887 R 311 406 038 R 532 283 849

5.3 2017/18 TRANSFERS TO ENTITIES Name of Agent Budget (As per BP) Transfers 2017/18 FY Expenditure Unspent funds Gauteng Partnership Fund [GPF] R 337 029 320 R 296 573 820 R 258 622 413 R 37 951 407 Housing Development Agency [HDA] - R 858 400 000  SUBTOTAL R 337 029 320 R 1 154 973 820 R 896 351 407 TOTAL [Municipalities & entities] R 1 182 357 646 R 1 998 663 707 R 570 028 451 R 1 428 635 256 The amounts transferred are committed and outputs thereof are expected to be reported in the 2018/19 Financial Year.

5.4 BREAKDOWN: 2017/18 TRANSFERS TO MUNICIPALITIES AND ENTITIES CITY OF JOHANNESBURG Amount Transferred = R292 314 711 Expenditure = R144 956 146 Balance = R147 358 565 NAME OF PROJECT PLANNED TARGETS BUDGET ALLOCATION TOTAL ACHIEVEMENT PROGRESS Kliptown 221 R6 370 732 16   Finetown Proper 79 25 Units at roof level Golden Triangle 91 R10 096 177 49 42 Units at foundations 49 Units at wallplate Riversideview 972 R190 314 710 480 748 Units at wallplate Fleurhof 204 R40 000 000 432 Units at roof level South Hills 64 R12 618 169 204 Units at roof level

5.5 BREAKDOWN: 2017/18 TRANSFERS TO MUNICIPALITIES AND ENTITIES CITY OF JOHANNESBURG NAME OF PROJECT PLANNED TARGETS BUDGET ALLOCATION TOTAL ACHIEVEMENT PROGRESS Lufhereng 226 R25 074 022 CITY OF TSHWANE Rama City 173 R19 193 831 Awaiting NHBRC enrolment Mamelodi Erf 29355 72 R14 075 640 Contractor back on site after being chased off site by local business forum. Garankuwa X10 160 R31 279 200 Structural assessment report received on 03 March 2018. Consultant finalising tender documents. Thorntree View 235 R26 072 545 Work in Progress - 160 slabs, 80 wallplate and 30 roofed. Fortwest Ext 4&5 300 R58 579 980 Procurement process at final stages with tender closed on 02 March 2018 and evaluation scheduled for 05 March 2018.

5.6 BREAKDOWN: 2017/18 TRANSFERS TO ENTITIES AND MUNICIPALITIES CITY OF EKURHULENI Amount Transferred = R51 203 160 Expenditure = R9 459 769 Balance = R41 743 391 NAME OF PROJECT PLANNED TARGETS BUDGET ALLOCATION TOTAL ACHIEVED PROGRESS Mayfield Ext 32 and 34 328 R41 203 160 Waiting for redirection of funds from GDHS for completion of the following projects: Alra Park = 461 units completed Moleleki Ext 1 and 2 = 112 units completed; and Eden Park West and Ext 1 = 597 units completed. Etwatwa Ext 35 = 329 units completed

5.7 BREAKDOWN: 2017/18 TRANSFERS TO MUNICIPALITIES AND ENTITIES MOGALE LOCAL MUNICIPALITY Amount Transferred = R105 269 000 Expenditure = R8 068 089 Balance = R97 200 911 NAME OF PROJECT PLANNED TARGETS (HOUSES& STANDS) BUDGET ALLOCATION TOTAL ACHIEVED (HOUSES & STANDS) PROGRESS Dr Sefularo 0 (H) 190 (S) R0 Delivered 190 stands. Dr Motlana 0 (H) 253 (S) 0 (H) 90% (S) Delays are due to the lack of connection to bulk infrastructure with progress at 90% regarding work on the ground. Chief Mogale Phase 2 552 (H) 0 (S) R20 000 000 Complete Badirile Portion 18 200 (H) 0 (S) R15 000 000 0 (H) 0 (S)   Brickvale Tarlton 630 (H) 0 (S) R70 000 000

5.1 BREAKDOWN: 2017/18 TRANSFERS TO MUNICIPALITIES AND ENTITIES RAND WEST LOCAL MUNICIPALITY Amount Transferred = R71 100 000 Expenditure = R36 632 862 Balance = R34 467 138 NAME OF PROJECT PLANNED TARGETS (HOUSES& STANDS) BUDGET ALLOCATION TOTAL ACHIEVED (HOUSES & STANDS) PROGRESS Construction of 20Ml Droogeheuwel Water Reservoir and 2Ml elevated Tower R22 100 000 80% complete Constractor appointed and on site. 80% progress on site. The project is a multi-year project and total budget for full scope is R170m for both prof fees and construction. Currently all available funds are exhausted and more funding is required. Electrification of Zenzele informal settlement R10 000 000 A service provider was appointed to commence with the designs and construction.

5.8 BREAKDOWN: 2017/18 TRANSFERS TO MUNICIPALITIES AND ENTITIES RAND WEST LOCAL MUNICIPALITY NAME OF PROJECT PLANNED TARGETS BUDGET ALLOCATION TOTAL ACHIEVEMENT PROGRESS Construction of roads and maintenance of existing roads R10 000 000 Complete Upgrading of bulk services (Bekkersdal water tower and Badirile treatment plant designs) PDR submitted, finalising the detailed designs Underground Water Monitoring Framework and Water & Sanitation Master Plan R8 000 000 Consultants appointed and commencement with the feasibility studies and data capturing Township establishment process for Jabulani and portion 48 Badirile R11 000 000   Finalising appointment of consultants to undertake Geotechnical investigation, EIA and township establishment in Jabulani and portion 48 Badirile.

5.9 BREAKDOWN: 2017/18 TRANSFERS TO MUNICIPALITIES AND ENTITIES MERANGFONG CITY Amount Transferred = R139 701 000 Expenditure = R39 714 760 Balance = R99 986 240 NAME OF PROJECT PLANNED TARGETS (HOUSES& STANDS) BUDGET ALLOCATION TOTAL ACHIEVED (HOUSES & STANDS) PROGRESS Khutsong South ext. 5/6 500 stands R0 55% complete Construction of services is at 55% complete. 753 stands R91 201 000 90% complete Delays are due to the lack of connection to bulk infrastructure with progress at 90% regarding work on the ground. 500 units 552 Complete Kokosi Ext 6 Electrical work R48 500 000   Contractors for electrical work appointed.

5.10 BREAKDOWN: 2017/18 TRANSFERS TO MUNICIPALITIES AND ENTITIES HOUSING DEVELOPMENT AGENCY (HDA) Amount Transferred = R858 400 000 Expenditure = R0 Balance = R858 400 000 NAME OF PROJECT PLANNED TARGETS (HOUSES& STANDS) BUDGET ALLOCATION TOTAL ACHIEVED (HOUSES & STANDS) PROGRESS Palm Ridge Ext.9 1060 R146 990 030 849 961 Foundations and 927 wallplates Eden Park West & Ext.1 100 R9 989 243 100 Foundations and 100 wallplates Chief Albert Luthuli Ext.4 326 R53 197 358 151 272 Foundations and 244 wallplates McKenzieville Ext.2 300 R37 917 009 90 297 Foundations and 210 wallplates Kagiso Ext.13 223 R13 395 521 25 185 Foundations and 154 wallplates

5.11 BREAKDOWN: 2017/18 TRANSFERS TO MUNICIPALITIES AND ENTITIES HOUSING DEVELOPMENT AGENCY (HDA) NAME OF PROJECT PLANNED TARGETS BUDGET ALLOCATION TOTAL ACHIEVED PROGRESS Nellmapius Ext.21 400 R84 853 011 262 335 Foundations and 266 wallplates Nellmapius Ext.24 395   163 320 Foundations and 169 wallplates Nellmapius Ext.6 106 R13 397 343 10 Foundations and 0 wallplates Temba View Ext.1 218 R27 553 026 4 70 Foundations and 30 wallplates Mahube Valley Ext.2 137 R17 315 434 2 107 Foundations and 23 wallplates Lufhereng Military Veterans 30 R3 618 207 12 28 Foundations and 28 wallplates Riverside/Diepsloot 160 R27 736 750 Complete

5.12 BREAKDOWN: 2017/18 TRANSFERS TO MUNICIPALITIES AND ENTITIES GAUTENG PARTNERSHIP FUND (GPF) Amount Transferred = R296 572 820 Expenditure = R258 622 413 Balance = R37 029 951 NAME OF PROJECT PLANNED TARGETS (HOUSES& STANDS) BUDGET ALLOCATION TOTAL ACHIEVED (HOUSES & STANDS) PROGRESS Erf 1673 Benoni, Ekurhuleni Municipality 18 R1 980 000 18 (H) 0 (S) Complete Erf 8292 Olievenhoutbosch Ext 36 88 R9 680 000 88 (H) 0 (S) Ervens 31,32,33,59 & 60 Bertrams 57 R6 270 000 57 (H) 0 (S) Pomona Ext 75 118 R13 091 746 118 (H) 0 (S) Ervens 1499& 1450, Karen Park Ext 52, Pretoria 176 R19 360 000 32 (H) 0 (S) The 144 units are 80% complete

5.13 BREAKDOWN: 2017/18 TRANSFERS TO MUNICIPALITIES AND ENTITIES HOUSING DEVELOPMENT AGENCY (HDA) NAME OF PROJECT PLANNED TARGETS BUDGET ALLOCATION TOTAL ACHIEVED PROGRESS Erf 953-956 Berea 38 R4 180 000 Project is 96% complete Erf 1191 Rayton Ext 7 24 R2 640 000 24 units complete, POE to be submitted ERF 2682 Kempton Park 50 R5 500 000 Project is 94% complete. Erf 533 & 534 Germiston 19 R2 090 000 Project is 97% complete. Portion 1&2 of erf 1871 Albertville 15 R1 650 000 Project is 95% complete Benoni 18 R1 980 000 Complete Cnr Main and Goud Street, JHB CBD 70 R7 766 290 Erf 2909 Jeppestown 32 R3550304 Project is 85% complete

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