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

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

3. 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

4. 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

5. 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, The DPME issued the required SEIAS certificate for the tabling of the Bill before the Social Protecion and Human Development Cluster

6. 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

7. 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.

8. 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
subsidy housing opportunities provided

9. 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).

10. 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).

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

12. 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

13. 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

14. 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:
housing units in  Eastern cape
3042 housing units in Free State
2568 housing units in North West
housing units in KwaZulu Natal
896 housing units in Western Cape
5 900 housing units in Limpopo

15. 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

16. 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

17. 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

18. 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

19. Performance per programme (Preliminary)

20. DEPARTMENTAL EXPENDITURE 1st QUARTER

21. Expenditure by Programme: 30 June 2016
Total Allocation
R' 000
Commitments
Expenditure
Variance
% Spent
1. Administration
34 538
85 243
19%
2. Human Settlements Policy, Strategy and Planning
83 063
1 561
16 115
66 948
3. Programme Delivery Support
33 086
19 864 9%
4. Housing Development Finance 51
17%
Total
69 235

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

23. Transfer Payments: 30 June 2016
Total Allocation
Expenditure
Variance
% Spent
Grants
18%
Human Settlements Development Grant
28%
Urban Settlements Development Grant - 0%
Entities
52 756 7%
Social Housing Regulatory Authority: Operational
36 392
100%
Social Housing Regulatory Authority: Institutional Investment
34 183
Social Housing Regulatory Authority: Restructuring Capital Grant
Social Housing Regulatory Authority: Regulations
6 000
Community Schemes Ombuds Services
23 920
16 364
7 556
68%
National Housing Finance Corporation
Housing Development Agency
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
17%

24. HSDG Expenditure Performance: 30 June 2016
Provinces
Voted Funds
Year to date (1 April 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 39
100
Free State 57 81 46
Gauteng 19 77 15
KwaZulu-Natal 33 89 29
Limpopo 17
131 22
Mpumalanga
41 791 23 86 20
Northern Cape
46 135
61 596 43 12
North West 35 66
Western Cape
60 526 85
Total 28 84 24

25. 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
818
OPSCAP
Land Hectares
280 hectare
75 639
65 000
Eradication of Title Deeds Backlog
4 871
2 089
Disaster Relief Fund
174 49 52
19 358
Total
330
6 129

26. 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
602
Total
Gauteng
Merafong City
935
986
26 000
Randfontein
33 000
10 711
Westonaria
1 000
1 787
44 000
Mogale City
1 115
1 368
20 000
3 050
4 141
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
235
17 919
Fetakgomo
521
3 000
50 635 35
5 961
1 294
2 910
66 000
620
48 770

27. 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
1 500
160
89 782
Steve Tshwete
745
528
38 000
52 601
Thaba- Chweu
235
28 000
20 750 68
1 853
Total
2 745
2 739
228
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
137
8 631
Moses Kotane
922
60 000
231
44 532
Rustenburg
2 070
1 639
246
47 792
Matlosana
780
69 000
98 708
602
66 097
3 104
4 908
1 337
Grand Total
12 520
16 970
2 829

28. 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
321
11 325

29. Rectification Report as at 30 June 2016 Province Annual Targets
Delivery Performance
Sites
Units
Funds Allocated
Expenditure
R'000
Eastern Cape -
1 899
591
KwaZulu-Natal
1 786
225
29 381
Western Cape
4 000
Total
3 685
816

30. 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
58 520
KwaZulu-Natal
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
13 958
Western Cape
98 756
57 466
9 768
Total

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

32. 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 (6÷3)
R'000
Buffalo City
42 403
96.7
24 569
3.3
Nelson Mandela Bay -
97.7
19 526
2.3
Mangaung
77 536
92.2
59 904
7.8
Ekurhuleni
86.4
13.6
City of Johannesburg
96.3
64 708
3.7
City of Tshwane
36 868
100
eThekwini
City of Cape Town
85.4
14.6
Total
93.7
6.3

33. 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
41.9
134.7
58.1

34. 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
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
100
41.9

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

36. “We have come a long way – Celebrating 20 Years of Freedom!”
THANK YOU
“We have come a long way – Celebrating 20 Years of Freedom!”