DEPARTMENTAL PERFORMANCE REPORT FOR THE 4th QUARTER OF 2015/16 PORTFOLIO COMMITTEE ON HUMAN SETTLEMENTS DIRECTOR-GENERAL: M. TSHANGANA

Presentation Outline The Review and Development of Policies and Programmes Consolidation of DFI’s Delivery of Housing Opportunities Administration Sector Capacity Building initiatives implemented Departmental Overall Expenditure Recommendations

Review of Policies and Programmes Beneficiary Allocations Policy developed for consultation Pre-Emptive Clause on beneficiary ownership is under revision - for consultation The CRU policy has been revised for consultation A revision of the Housing Code commenced The Policy for coherent and inclusive approach to land for human settlement developed The Social Housing Programme and IRDP is currently subject to an evaluation

Consolidation - Development Finance Institutions A tax proposal for exempting the single DFI from income tax was tabled and supported by the Minister of Finance The process of appointing a service provider to facilitate operational integration commenced The process of drafting the enabling legislation for the single DFI commenced. A proposal to commence with the consolidation of the RHLF, NHFC and NURCHA boards is under consideration.

Delivery of Housing Opportunities A total of 63 Catalytic projects are being evaluated for technical and project execution. A human settlements infrastructure development plan was drafted and projects identified were mapped in line with SIP 6 and 7 460 Feasibilities conducted for informal settlements upgrading 51 Informal Settlement Upgrading Plans developed 14 266 title deeds issued to new home owners in the subsidy 12 553 PHP units in five Provinces delivered

Delivery For Q 4 Jan 2016 - March 2016 Note: 2015/16 delivery figures are up to end March 2016 and are preliminary.

Delivery For April 2015 – March 2016 Annual Targets for 2015/16 (as per DG Memo, Planning Unit, Mirembe - 22 07 2015)

Delivery For April 2015 – March 2016 in relation to Annual Targets and Outstanding delivery at 31/03/16 Note: 2015/16 delivery figures are up to end March 2016 and are preliminary.

Delivery For April 2015 – March 2016 in relation to Annual Target and Expenditure Performance Annual Targets for 2015/16 (as per DG Memo, Planning Unit, Mirembe - 22 07 2015)

Military Veterans – Units Delivered Province Units Delivered 2015/2016 1. Gauteng 07 units 2. Mpumalanga 79 units 3. KZN 0 units 4. Eastern Cape 58 units 5. Northern Cape 19 units 6. North West 15 units 7. Limpopo 8. Western Cape 9. Free State 26 units Total 204 units

Revitalization of Mining Towns 36 Informal settlements in North West, Free State, Gauteng and Limpopo received full upgrading which includes rapid formalization and full services 98 Informal settlements in North West, Limpopo, Mpumalanga, Gauteng and Northern Cape received interim basic services resulting in formalization 89 Informal settlements in North West, Free State, Limpopo, Mpumalanga, Gauteng and Northern Cape received emergency basic services resulting relocation

Revitalization of Mining Towns Feasibility studies for Naledi and Lesedi mining projects in Steve Tshwete Municipality conducted The Marikana integrated housing initiative yielded 189 rental housing units and 200 BNG units Limpopo, North West, Gauteng, Mpumalanga, Northern Cape and the Free State were provided with institutional and technical planning interventions Partnerships with various mining companies were established

Revitalization of Mining Towns The MOU between the NDHS, HDA and DBSA, wherein DBSA will assist with project preparation funding, infrastructure loan funding; and “front-loading” of infrastructure grants developed In partnership with HDA and DPME, a Strategy for Mining Towns has been finalized

Sector Capacity Building Initiatives Implemented 1800 Youth trained through the Youth Brigade Programme on Artisan Skills and Real Estate Youth also trained on critical skills including Engineering, Town Planning, and placed in various provinces and municipalities Youth and Women contractors were trained on entrepreneurship skills and are having a competitive advantage of bidding as services providers

Sector Capacity Building Initiatives Implemented 100 Youth also trained on Artisan skills in KZN 60 Officials from the National Department, Provinces and municipalities trained on the Human Settlements Policy Development & Management Programme 192 students were registered for the undergraduate degrees in Human Settlements Development at NMMU, Fort Hare and UNISA and funded through DHS and LGSeta collaboration

Sector Capacity Building Initiatives Implemented 50 students were funded in Built Environment studies at the Mangosuthu University of Technology. 71 students registered in Built environment at different Universities are funded through the Department’s Scholarship Programme. Beneficiaries were trained on their responsibilities - house maintenance, payments of rates and their rights.

Administration Needs database has been developed The IT governance related issues raised by AG addressed Communication on departmental programmes has been improved through the use of various platforms - BNG Series, Bill Boards, Community Engagement Human Resources Plan developed

DEPARTMENTAL EXPENDITURE 4th QUARTER

Expenditure by Programme: - 31 March 2016 Total Allocation R' 000 Commitments Expenditure Variance % Spent 1. Administration 435 251 8 697 410 238 25 013 94% 2. Human Settlements Policy, Strategy and Planning 77 493 203 75 780 1 713 98% 3. Programme Delivery Support 166 690 1 239 129 385 37 305 78% 4. Housing Development Finance 29 863 947 2 29 426 947 437 000 99% Total 30 543 381 10 141 30 042 351 501 030

Operational Expenditure by Programme: 31 March 2016 Total Allocation R' 000 Commitments Expenditure Variance % Spent 1. Administration 434 205 8 697 409 201 25 004 94% 2. Human Settlements Policy, Strategy and Planning 75 884 203 74 171 1 713 98% 3. Programme Delivery Support 157 399 1 239 121 520 35 879 77% 4. Housing Development Finance 21 400 2 21 011 389 Total 688 888 10 141 625 903 62 985 91%

Transfer Payments:31 March 2016 Total Allocation Expenditure Variance % Spent Grants 28 957 020 - 100% Human Settlements Development Grant 18 302 675 Urban Settlements Development Grant 10 554 345 Municipal Human Settlements Capacity Grant 100 000   Entities 885 507 448 906 436 601 51% Social Housing Regulatory Authority: Operational 34 560 Social Housing Regulatory Authority: Institutional Investment Grant 41 936 0% Social Housing Regulatory Authority: Restructuring Capital Grant 432 307 109 210 323 097 25% Community Schemes Ombuds Services 39 521 National Housing Finance Corporation National Urban Reconstruction and Housing Agency 61 000 Housing Development Agency 176 183 104 615 71 568 59% Departmental Transfers 11 966 9 154 2 812 76% Bursaries Scheme 8 792 7 374 1 418 84% UN Habitat 1 368 Households 1 806 1 780 26 99% Total 29 854 493 29 415 080 439 414

OVERVIEW OF PROVINCIAL -FINANCIAL PERFORMANCE ON CONDITIONAL GRANTS FOR THE PERIOD ENDING 31 MARCH 2016 HUMAN SETTLEMENTS DEVELOPMENT GRANT Ver: 11 April 2016

HSDG Expenditure Performance: 31 March 2016 Provinces Voted Funds Reallocated Funds Adjustment Roll Overs Total Available Year to date (1 April 2015 - 31 March 2016 Transferred Funds Spent by Provinces Variance Spent vs Total Available Spent as % of Total Available R'000 Eastern Cape 1 962 372 400 000 100 000 - 2 462 372 2 458 180 4 192 100 Free State 1 057 284 1 057 237 47 Gauteng 4 979 844 -908 377 4 071 467 4 048 078 23 389 99 KwaZulu-Natal 3 235 475 308 377 3 543 852 Limpopo 1 283 877 308 012 1 591 889 1 123 299 468 590 71 Mpumalanga 1 265 162 70 380 1 335 542 1 335 486 56 Northern Cape 380 408 480 408 476 559 3 849 North West 2 063 131 2 163 131 2 163 129 2 Western Cape 1 975 122 Total 18 202 675 378 392 18 681 067 18 302 675 18 180 942 500 125 97

Milestones - Not New Opportunities : 31 March 2016 Programmes Annual Targets Delivery Performance Sites Units Funds Allocated Expenditure R'000 EEDBS - 1 262 76 462 6 395 42 547 Rectification 5 739 471 859 8 251 788 014 OPSCAP 805 237 767 368 Land Hectares 513 421 856 483 432 168 Disaster Relief Fund 410 835 374 3 413 332 552 Total 7 514 1 775 414 15 129 2 030 097

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 - 780 75 337 158 365 1 342 210 193 Total Gauteng Merafong City 615 50 000 53 009 Randfontein 136 52 000 27 508 Westonaria 1 683 1 000 60 900 184 370 1 751 162 900 264 887 Limpopo Thabazimbi 195 16 400 32 785 Greater Tubatse 610 740 36 500 197 230 398 39 394 Elias Motsoaledi 800 294 16 600 44 052 91 12 378 Lephalale 3 089 677 77 100 86 191 523 42 512 Fetakgomo 192 7 600 20 856 102 8 893 4 499 2 098 154 200 381 114 1 114 103 177

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 3 990 2 809 51 400 310 814 4 000 1 503 309 227 Steve Tshwete - 36 300 39 542 311 151 38 016 Thaba- Chweu 180 26 800 27 970 202 25 448 Total 2 989 114 500 378 326 4 311 1 856 372 691 Northern Cape Tsantsabane 390 22 140 37 133 16 644 Ga-Segonyana 50 13 600 15 130 218 13 150 Gamagara 43 9 800 4 923 38 4 162 Kgatelopele 4 500 2 114 3 885 Joe Morolong 238 19 544 93 50 040 59 300 494 57 385 North West Kgetleng Rivier 866 61 600 118 642 477 59 281 Madibeng 847 154 000 237 044 456 37 504 Moses Kotane 484 44 000 130 634 713 100 586 Rustenburg 2 417 1 211 149 900 329 623 1 435 915 197 314 Matlosana 966 722 73 200 225 547 1 815 211 792 3 383 4 130 482 700 1 041 490 4 376 606 477 Grand Total 13 945 11 841 1 039 677 2 283 482 5 746 9 182 1 349 923

Finance Linked Individual Subsidies Programme (FLISP) Report as at 31 March 2016 Province Annual Targets Delivery Performance Sites Units Funds Allocated Expenditure R'000 Eastern Cape - 200 12 442 247 11 382 Free State 37 5 100 13 461 Gauteng 90 1 293 101 169 906 9 018 KwaZulu-Natal 2 000 350 81 750 458 27 062 Limpopo 300 24 900 43 25 594 Mpumalanga 100 8 700 32 1 350 Northern Cape 30 2 182 42 North West 277 23 359 Western Cape 145 6 250 411 23 901 Total 2 090 2 732 265 852 2 110 98 810

Rectification Report as at 31 March 2016 Province Annual Targets Delivery Performance Sites Units Funds Allocated Expenditure R'000 Eastern Cape - 2 487 156 563 3 520 488 150 Free State 370 108 158 Gauteng KwaZulu-Natal 2 273 204 579 3 102 157 671 Limpopo 500 43 500 940 Mpumalanga 37 Northern Cape 11 019 66 5 944 North West 44 998 880 19 087 Western Cape 479 11 200 276 8 064 Total 5 739 471 859 8 251 788 014

Operational Capital Budget Report as at 31 March 2016 Province Annual Targets Delivery Performance 5% allocation Units Funds Allocated Sites Expenditure R'000 Eastern Cape 98 119 - 88 373 50 732 Free State 52 864 52 641 Gauteng 248 992 237 547 KwaZulu-Natal 161 774 149 646 115 194 Limpopo 64 194 30 938 31 617 Mpumalanga 63 258 60 344 65 049 Northern Cape 19 020 95 285 North West 103 157 51 908 52 530 Western Cape 98 756 103 152 66 773 Total 910 134 805 237 767 368

Disaster Relief Programme Province Annual Targets Delivery Performance Sites Units Funds Allocated Expenditure R'000 Eastern Cape - 100 000 374 470 42 974 Gauteng 40 000 KwaZulu-Natal 158 821 1 926 169 739 Limpopo 34 332 34 182 Mpumalanga 34 098 408 40 716 North West 38 507 609 44 941 Western Cape 5 077 Total 410 835 3 413 332 552

OVERVIEW OF PROVINCIAL -FINANCIAL PERFORMANCE ON CONDITIONAL GRANTS FOR THE PERIOD ENDING 31 MARCH 2016 URBAN SETTLEMENTS DEVELOPMENT GRANT Ver: 11 April 2016

USDG Expenditure Performance : 31 March 2016 USDG EXPENDITURE (01 JULY 2015 - 31 MARCH 2016) Municipality   Voted Funds 1 Rollover from 2014/15 2 Total Available Funds 3 (1+2) Actual Transfer from Voted funds 4 Spent by Municipality 5 % Spent against Total Available funds 6 (5÷3) % Spent against Transferred funds 7 (5÷4) Unspent from Total Available Funds 8 (3-5) % Unspent against Total Available Funds 9 (8÷3) R'000 Buffalo City 713 132 42 403 755 535 488 267 64.6 68.5 267 268 35.4 Nelson Mandela Bay 846 480 - 537 912 63.5 308 568 36.5 Mangaung 693 847 77 536 771 383 425 730 55.2 61.4 345 653 44.8 Ekurhuleni 1 842 887 486 507 2 329 394 1 000 322 42.9 54.3 1 329 072 57.1 City of Johannesburg 1 731 220 1 097 710 63.4 633 510 36.6 City of Tshwane 1 500 683 36 868 1 537 551 890 416 57.9 59.3 647 135 42.1 eThekwini 1 838 336 871 279 47.4 967 057 52.6 City of Cape Town 1 387 760 163 495 1 551 255 670 022 43.2 48.3 881 233 56.8 Total 10 554 345 806 809 11 361 154 5 981 658 52.7 56.7 5 379 496 47.3

USDG Consolidated - Financial Performance 31 March 2016 Description Allocated Budget % of Total Allocated Budget Spent by Municipality % Spent Unspent funds % Unspent R'000 Land acquisition 317 914 2.8 116 194 36.5 201 720 63.5 Housing 3 025 500 26.6 1 640 438 54.2 1 385 062 45.8 Roads and Stormwater 1 496 010 13.2 756 500 50.6 739 510 49.4 Transport 1 214 788 10.7 677 092 55.7 537 696 44.3 Water and Sanitation 3 119 648 27.5 1 652 884 53.0 1 466 764 47.0 Electricity 685 149 6.0 408 221 59.6 276 928 40.4 Waste Management 339 943 3.0 227 768 67.0 112 175 33.0 Social Amenities 617 325 5.4 260 553 42.2 356 772 57.8 EPMO-Project Management Funding 21 942 0.2 17 546 80.0 4 396 20.0 Economic and Rural Development 4 232 - 100 Planning 25 835 6 694 25.9 19 141 74.1 Re Aga Tshwane 154 218 1.4 94 368 61.2 59 850 38.8 Economic Development and Planning 64 518 0.6 37 386 57.9 27 132 42.1 Office of City Manager 93 104 0.8 4 960 5.3 88 144 94.7 Spatial Planning and Urban Design 7 022 0.1 100.0 Safety and Security - Law enforcement 1 006 VAT 173 000 1.5 74 032 42.8 98 968 57.2 Total 11 361 154 5 981 658 52.7 5 379 496 47.3

OVERVIEW OF PROVINCIAL -FINANCIAL PERFORMANCE ON CONDITIONAL GRANTS FOR THE PERIOD ENDING 31 MARCH 2016 MUNICIPAL HUMAN SETTLEMENTS CAPACITY GRANT Ver: 11 April 2016

MHSCG Performance - Expenditure 31 March 2016 MHSCG EXPENDITURE (01 JULY 2015 - 31 MARCH 2016) Municipality Voted Funds 1 Rollover from 2014/15 2 Total Available Funds 3 (1+2) Actual Transfer from Voted funds 4 Spent by Municipality 5 % Spent against Total Available funds 6 (5÷3) % Spent against Transferred funds 7 (5÷4) Unspent from Total Available Funds 8 (3-5) % Unspent against Total Available Funds 9 (8÷3)   R'000 Buffalo City 9 253 - 2 328 25.2 6 925 74.9 Nelson Mandela Bay 9 847 23 235 33 082 11 943 36.1 121.3 21 139 63.9 Mangaung 9 206 954 10.4 8 252 89.7 Ekurhuleni 14 313 50 818 65 131 4 457 6.8 31.1 60 674 93.2 City of Johannesburg 16 505 59 573 76 078 4 026 5.3 24.4 72 052 94.7 City of Tshwane 12 831 16 420 29 251 2 466 8.4 19.2 26 785 91.6 eThekwini 14 342 39 980 54 322 11 359 20.9 79.2 42 963 79.1 City of Cape Town 13 703 31 580 45 283 14 216 31.4 103.7 31 067 68.6 Total 100 000 221 606 321 606 51 749 16.1 51.7 269 857 83.9

Consolidated – Non-Financial Performance: 31 March 2016 Category Description Voted Funds Spent By Municipalities Unspent Funds % Spent R'000 Capacity Compensation of Employees/ Salaries 115 956 36 572 79 384 31.5 Training of Staff 21 417 1 761 19 656 8.2 Workshops 400 14 386 3.5 Consultants 35 607 10 360 25 247 29.1 Professional / Technical Services 20 545 - Professional Project Management Services 3 262 Pre-Planning Mega Projects 4 415 303 4 112 6.9 Interim Capacity (Fixed term contracts) 13 336 1 151 12 185 8.6 Research 10 701  - Support Rental - External / Buildings 852 479 373 56.2 Risk Management 17 028 Management plan/business processes 1 769 Functional Planning 23 442 Operational Costs 435 83 352 19.1 Office Equipment 16 203 1 023 15 180 6.3 Systems 36 238 3 36 235 Total 321 606 51 749 269 857 16.1

Summary The Department has strengthened its engagement with provinces, entities and municipalities for better delivery Critical Positions have been prioritised in the new financial year and will be filled The department is working closely with Provinces on the improving data integrity of HSS and the needs database to address the challenges that exist Mechanisms are being put in place to ensure that provinces monitor and report accurately, by unique name, on the number of informal settlements upgraded to Phase 3

Overall Departmental Performance : 80% targets achieved Overall Departmental Performance : 80% targets achieved 18 % targets partially achieved 2% targets not achieved

Recommendations It is recommended that the Committee notes the content presentation That the Committee notes that the final audited figures on perfomance, categorised will be included in the annual report

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