GAUTENG DEPARTMENT OF HUMAN SETTLEMENTS HUMAN SETTLEMENTS PORTFOLIO COMMITTEE : GP PERFORMANCE REPORT 19TH FEBRUARY 2019

PRESENTATION CONTENT Purpose of the Presentation Summary Departmental Performance Narrative Financial and Non-Financial Performance as at 08 February 2019 Non-Financial performance illustration Annual Programme Performance Reasons for the variation between financial and non-Financial Performance Summary Performance of the Department during the current term of Office Medium Term Strategic Framework (MTSF) Q4 Performance –January Special Projects Mining Towns Progress on Transfers to Municipalities Progress on Transfers to Agencies Work In Progress ( WIP) EPWP

PURPOSE OF THE PRESENTATION The purpose of the presentation is to present financial and non-financial performance of the Gauteng Department of Human Settlements

SUMMARY PERFORMANCE NARRATIVE gets. SUMMARY PERFORMANCE NARRATIVE In view of the adjusted Business Plan, total targets of 2018/19 the Gauteng Province are 13 124 stands and 29 536 housing units, delivery to date weighs in at 7 364 (56%) for stands and 7 255 (25%) for housing units. Therefore there is a deficit of 5 760 stands and 22 281 housing units, which should according to the Business Plan be delivered . The Implementing Agencies and Municipalities are also delivering on the deficit. A positive increase in delivery is expected from the municipalities as the financial year ends in June which give more time to finalise the Work in progress which will be accounted for in the 2018/19 financial year.

NON FINANCIAL PERFROMANCE AS AT 30 JAN 2019 Housing Development Region Target Sites Target Units Delivery Sites Delivery Units Sites % Units % Jo’burg 1484 4411 828 2343 56% 53% Tshwane 1037 2833 1719 0% 61% West Rand 5250 4944 4900 830 93% 17% Sedibeng 2839 2603 1636 810 58% 31% Ekurhuleni 2514 4790 1165 24% Head Off. Flisp 9955 - 508 34% Rapid Land 2777 Sub Total 13124 29536 10 141 7 375 37% Work in progress @ roof level 2 190 @ wall plate level 3 877

FINANCIAL PERFROMANCE AS AT 15 FEB 2019 Human Settlements Development Grant as at 15 February 2019 Region Budget (adjusted ECE) R’000 Expenditure as at 15 February 2019 (R'000) Available Budget % Spent (per ECE) Jo’burg 557 911 502 937 54 974 90% Tshwane 555 325 301 646 253 679 54% West Rand *1 554 903 862 387 692 516 55% Sedibeng *706 789 491 058 215 731 69% Ekurhuleni 911 017 703 826 207 191 77% Hd. Off. Flisp **877 855 615 755 262 100 70% Rapid Land Total 5 163 800 3 477 609 1 686 191 67% *Note that these budgets exclude both Inner City renewal and Upgrade and Syferfontein. **Head Office budget excludes EPWP and Title Deed Restoration Grant. Title Deeds Restoration Grant Region Budget (adjusted ECE) R’000 Expenditure as at 08 February 2019 (R'000) Available Budget % Spent (per ECE) Head Office 105 811 45 187 60 624 43% Total

NON FINANCIAL PERFOMANCE ILLUSTRATION

ANNUAL PROGRAMME PERFORMANCE (APRIL 2018 - JAN 2019) gets. ANNUAL PROGRAMME PERFORMANCE (APRIL 2018 - JAN 2019) PROGRAMMES Annual target 2018/19 Delivery to date Stands Housing Units Financial Intervention 10 255 2777 RLRP 508 Flisp Incremental Housing Programmes 12 824 18 263 5 195 5 948 Social and Rental Housing 668 448 Rural Housing 300 100 1 636 177 Provincial Priority 119 Provincial specific programmes 250 533 GRAND TOTAL 13 124 29 536 10 141 7 375

HOUSING DELIVERY AS AT END JANUARY EXPENDITURE AS AT 15 FEB 2019 REASONS FOR THE IMBALANCE BETWEEN FINANCIAL AND NON-FINANCIAL PERFORMANCE HOUSING DELIVERY AS AT END JANUARY EXPENDITURE AS AT 15 FEB 2019 (R’000) HSDG: 10 141 S + 7 375 U = 17 516 (41%) TDRG : Pre=1085 Post =9183 R 3 477 609 (67%) R 45 187 (43%) REASONS FOR THE DEVIATION BETWEEN DELIVERY AND EXPENDITURE: The difference between the delivery and expenditure is due to: Transfers to implementing agencies municipalities will be accounted for in the 2018/19 financial year however the municipal financial year ends in June. Mega Projects will increase delivery on units in 4th quarter because we count completed units in the form of blocks as most are delivering RDP Walk ups. Delays in the issuing of current title deeds due to a historical challenge of non formalised townships and lack of proclamation Poor performing contractors, the intervention of the department is termination of poor performing contractors and appointment of highly capacitated contractors Business Forums slowing down delivery in GP projects

gets. SUMMARY PERFORMANCE OF THE DEPARTMENT DURING THE CURRENT TERM OF OFFICE DHS DELIVERY PROGRAMMES 2014/15 2015/16 2016/17 2017/18 2018/19 Annual Target 2018/19 YTD TOTAL ACHIEVEDTO DATE AS AT JAN 2019 Annual Target Delivery   As at end Jan 2018 No. of Houses Built 17678 14984  25871 14968  31402 16003  32064 17606 29137 7375 70936 No. of Stands Serviced 7728  5397 14991  10048 11828 8843  16965  7910 12842 10141 42339 Housing opportunities 25406 20381 40862 25016 43230 24846 49029 25468 41179 17619 113273 Title Deeds  Pre-1994 4000 2690 2746 7461 2576 400 2812 3452 1085 11909 Title Deeds  Post-1994 5000 9603 6000 16166 104301 8699 55552 19522 27712 9183 63173 Title Deeds  New/Current 884 15110

MEDIUM-TERM STRATEGIC FRAMEWORK ( MTSF) Key Performance Indicators: MTSF Programme Provincial MTSF Targets Annual MTSF Target 2014/15 Achieved 2015/16 Achieved 2016/17 Achieved 2017/18 Achieved 2018/19 Achieved (Q1-Q3) Total Achieved to Date Variance Financial Interventions Housing Finance-linked Individual Subsidy Programme (FLISP) 27 850 5 570 696 818 1 245 829 508 4 096 23 754 (85%) Incremental Housing Upgrading of Informal Settlements Programme 282 000 41 275 GP 8 255 5 397 10 048 8 313 13 569 4477 units 1519 (stands 43323 {104.9 %) Social & Rental Housing Community Residential Units (CRUs) Constructed 2 800 560 35 311 412 404 1 162 1 638 (59%) Social Housing 9 905 1 981 973 1 849 1 328 44 5 023 4 882 (49%)

MEDIUM-TERM STRATEGIC FRAMEWORK PROGRAMMES MEDIUM-TERM STRATEGIC FRAMEWORK PROGRAMMES cont.. KPIS: MTSF Programme Provincial MTSF Targets Annual MTSF Target 2014/15 Achieved 2015/16 Achieved 2016/17 Achieved 2017/18 Achieved 2018/19 Achieved (Q1-Q3 incl. Jan 2019) Total Achieved to Date Variance Military Veterans 2 837 710 N/A 21 102 200 323 2 514 (88,6,%) Issuance of Title Deeds Title Deeds (pre-and post- 1994 combined) 165 710 33 142 7 808 8 887 11 275 22 334 10 268 60 572 105 138 (36,6%) Acquisition of Land Parcels for Human Settlements Development Land Parcels (Hectares/Ha) 10 000 Ha 2000 Ha 3 (312) Ha) 1(128 Ha) Total 859,5 Ha acquired (4 land Parcels ) Evaton West X2 (36.8 ha) Evaton West X 4 & 7 ( 18.6ha ) Evaton West Beverly Hills ( 17.4 ha) Soshanguve/Stink-water 732.7 ha) 1299,5881 Ha 8700,4119 Ha (%)

Q4 PERFOMANCE ( JANUARY–MARCH 2019) gets. Q4 PERFOMANCE ( JANUARY–MARCH 2019) Sub-programmes   Target Q4 January Delivery Delivery Q4 Q4 Delivery % Stands Housing Units Financial Intervention 10 255 Incremental Housing Programmes 10 330 11 030 215 2% Social and Rental Housing 436 Rural Housing 300 Priority Projects PROVINCIAL SPECIFIC PROGRAMMES 50 GRAND TOTAL 10 630 21 771 1%

SPECIAL PROJECTS AS AT JANUARY 2019 gets. SPECIAL PROJECTS AS AT JANUARY 2019 Special Programmes 2018/19 Target 2018 /19 Delivery Target Q4 (Jan – Mar) Delivery Q4 (Jan - Mar) Delivery % Title Deeds : Pre 1994 3452 1085 7 Title deeds: Post 1994 27712 9183 97 Title deeds: Current 15110 1 129 Military Veterans 670 200 *200 UISP 4477 (H/U) 1519 (S) 207 units FLISP 10255 611 10 255 Land Purchases In the month of January Sterkwater portion 3 with 732,75ha was acquired.   Under HDA the following land parcels were purchased during Quarter 3: 992 stands at Evaton West Ext 2 (36,8ha); 745 stands at Evaton West Ext 7&4 (18,6ha) and 777 stands at Evaton Beverly Hills (17,4ha) acquired towards the Rapid Land Release programme.

SPECIAL PROJECTS:MINING TOWNS AS AT JANUARY 2019 gets. SPECIAL PROJECTS:MINING TOWNS AS AT JANUARY 2019 Special Programmes Target Q4 (Jan – Mar) Delivery Q4 (Jan - Mar) Delivery % Mining Towns   *Please note that the Mining Towns report only focusses on the projects targeted against the transferred funds. Mining Towns (cont..)  MERAFONG: Funds transferred amounting to R46 900 000 to the municipality: Greenspark outfall sewer - feasibility study is conducted; Electrification of Khutsong South Ext 5&6 – feasibility study is completed Kokosi Ext 7 Linkage of the old outfall sewer line & manholes – feasibility study is completed. Fochville Construction of a Reservoir - feasibility study is completed. MOGALE CITY: Funds transferred amounting to R91 000 000 to the municipality. Installation of services underway at Brickvale project. Bulk water supply at 40%, sewer reticulation 43% RAND WEST CITY: Funds transferred amounting to R73 383 000 to the municipality. Droogeheuwel Reservoir - Project at 90%; Electrification of Zenzele – Project is complete; Electrification of Jabulani – Project is complete; Electrification of Mohlakeng Ext 14 - Project is 97% complete.

PROGRESS ON THE TRANSFERES TO MUNICIPALITIES Municipality Revised Gazette Transferred Amount Planned Outputs Progress 1. City of Joburg R135 919 000 R46 785 818 735 units WIP on two projects South Hills and Lufhereng will be recorded in the 4th quarter 2.City of Tshwane R 22 992 000 R0 500 stands 3.City of Ekurhuleni R506 341 770 R285 695 633 3708 units Adjusted transfers to be tabled at the Budget adjustment of the Municipality and progress will be recorded. Contractors already appointed. 4.Merafong R46 900 000 Infrastructure development of Greenspark,Fochville,Kokosi Ext 6 and Khutsong ext 5&6 Greenspark – Feasibility study complete Fochville – Feasibility study completed Kokosi Ext 7 – Feasibility Study completed Khutsong Ext 5&6 – Feasibility study completed 5.Mogale City R91 000 000 Installation of bulk infrastructure at Brickvale project Brickvale project progress: Bulk water line = 78% Water reticulation =15% Sewer Reticulation =19% Bulk Sewer =12% Road Bulk cutting = 35%

PROGRESS ON THE TRANSFERS TO MUNICIPALITIES CONT.. gets. PROGRESS ON THE TRANSFERS TO MUNICIPALITIES CONT..   MUNICIPALITY REVISED GAZETTE TRANSFERRED AMOUNT PLANNED OUTPUTS PROGRESS 6. Rand West City R 88 383 000 R 73 383 000 Droogeheuwel Reservoir, electrification at Zenzele, Jabulani and Mohlakeng Ext 14 projects. Droogeheuwel Reservoir - Project at 90%; Electrification of Zenzele – Project is complete; Electrification of Jabulani – Project is complete; Electrification of Mohlakeng Ext 14 - Project is 97% complete. TOTAL  R 891 535 770  R 543 764 451

PROGRESS ON TRANSFERS TO AGENCIES: gets. PROGRESS ON TRANSFERS TO AGENCIES:   AGENCY BUDGET TRANSFERRED AMOUNT PLANNED OUTPUTS PROGRESS HDA R 158 386 000 R 0 5 768 units and 3 400 stands Total delivered in January is 47 units. LEGACY projects - To date 1 284 units completed and 131 units at practical completion level. CATALYTIC projects - Has delivered 2 units whilst 15 units are at wallplate level. LAND PURCHASE- 992 stands at Evaton West Ext 2 (36,8ha); 745 stands at Evaton West Ext 7&4 (18,6ha) and 777 stands at Evaton Beverly Hills (710ha) acquired towards the Rapid Land Release programme. GPF R 771 914 000 R 690 488 700 4 100 units and 4 630 stands 4 900 stands delivered 1 192 units at roof level; 1 979 units at wall plate level; 2 723 units at foundation level.

REASONS FOR NON-PERFORMANCE AND INTERVENTIONS CHALLENGES INTERVENTIONS 1. Poor Integrated Planning across the 3 spheres of government The Department and Metros, municipalities including Implementing agents planned together and endorsed 2019/20 Business Plan to curb misalignment of plans and to ensure Metro provision of Bulk using the USDG 2. Late approval of the Business Plan The National Department of Human Settlements provided support and inputs in the Development of the 2019/20 Business Plan with timeous approval commitments on ready projects 3.Delays in the registration and proclamation of townships leading to a further backlog in Title Deeds Issuance The Budget for formalization of townships has increased from approximately R15m to R50m for the 2019/20 BP

REASONS FOR NON-PERFORMANCE AND INTERVENTIONS CHALLENGES INTERVENTIONS 4.Inconsistencies in the management of the beneficiary lists A resolution to publish the beneficiary lists to eliminate the imminent fraud /manipulation and interference . A workshop between province and councilors/cooperative structures to ensure consultation prior to implementation Beneficiary verification has been prioritized with capacity also strengthened/enhanced 5.Lack of Bulk Infrastructure provision with the USDG underspending MINMEC has resolved a compulsory alignment process of the USDG and HSDG. The MEC would be allowed to concur prior to approval of municipal USDG plans prior to adoption by council and the national department of Human Settlements 6. Illegal Invasions Where the department has obtained court orders to evict, the eviction is being enforced with the relevant law enforcement agencies 7. Illegal Business Forums barring Developmental Imperatives The assistance of law enforcement agencies are sought.

REASONS FOR NON-PERFORMANCE AND INTERVENTIONS CHALLENGES INTERVENTIONS 8. Ineffective social facilitation The Department resolved to create a panel of social facilitators to assist the Dept. with community issues ( Budget provision made using the Informal settlements Upgrading programme has made provision to enable such interventions 9.Underperformance of contractors The Department has terminated contractors that are not performing and contracted high capacity contractors to finalise outstanding works on those projects 10. Lack of consistent implementation of funding agreements and SLAs and accountability A reporting forum was created to enforce accountability, monthly meetings are held where reporting is monitored. 11. Weaknesses in contract management in some areas Tighter controls on contract management and contract monitoring are continuously closely reviewed in management structures . The NDHS would second officials tice a week to assist in this area

HSDG Cumulative Performance to 15 February 2019 2018/19 Human Settlements Development Grant Item Amount Cumulative % of total DORA Allocation 5 163 800 000 100% HSDG Expenditure up to 15 February 2019 3 477 609 000 67% Claims Pending Claims en route to CFO for approval 266 678 881 3 744 287 881 73% Claims en route to HOD for approval - Claims currently with GDHS grants unit 221 159 182 3 965 447 063 77% Claims already submitted to eGov/PT 540 091 701 4 505 538 764 87% Claims currently with GHDS regions 13 391 281 4 518 930 045 88% Nominal Value of Payments and Claims 22

Expenditure as at 08 February 2019 EPWP PERFORMANCE EPWP Target Jobs created Budget 2018/19 (R’000) Expenditure as at 08 February 2019 (R'000) Available Budget (R’000) % Spent % Available Households 8000 3954 9 063 9 089 -26 100% 0% Total

Conclusion There has been a significant improvement in the financial performance of the department . The implementing Agencies GPF and HDA will deliver additional units in the last quarter, as work in progress is at final stages. Due to the financial year ending in June, this provides the municipalities with enough time to deliver on the funding agreements for 2018/19.

QUESTIONS …QUESTIONS …QUESTIONS