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

2. 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.

3. 2. EXECUTIVE SUMMARY - PERFORMANCE 2017/18 FY
NON-FINANCIAL PERFORMANCE
The Department planned to deliver stands and housing units. A total of stands and housing units were delivered, 47% stands and 55% housing units. The variance against the annual targets amounts to stands and housing units.
FINANCIAL PERFORMANCE
During the period April March 2018, the Department was originally allocated R5 528 050 000 for programmes and subsequently there was a downward adjustment of R and had an approved roll-over of R and consequently received R  000 whereas expenditure for the year was R5 302  Therefore expenditure for 2017/18 financial year was 98% of the funds received with a variance of R119 
Therefore, the housing opportunities created during this financial year are (52%) whilst total expenditure is at 98% (R5  ).

4. 3. IMPROVEMENT PLAN

5. 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

6. 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

7. 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

8. 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

9. 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.

10. 4. DEPARTMENTAL ANNUAL PERFORMANCE

11. 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

12. 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.

13. 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.

14. 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
9 603
16 166
19 522
45 291
884
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.

15. 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)

16. 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

17. Title Deeds Delivery Analysis
Target for 2017/18 is , however has been achieved which is 40% of the target
Initial target was eradication of total backlog of by end of 2018/19. However title deeds have been registered since 2014/15
The target for 2018/19 is so the implication is that 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 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.

18. 5. DEPARTMENTAL ANNUAL FINANCIAL PERFORMANCE

19. /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.

20. 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 R R R
COT R R R R
COE R R R R
Mogale City R R R
Merafong City R R R R
RandWest City R R R
Total R R R R

21. 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 R R R
Housing Development Agency [HDA] - R
 SUBTOTAL R R R
TOTAL [Municipalities & entities] R R R R
The amounts transferred are committed and outputs thereof are expected to be reported in the 2018/19 Financial Year.

22. 5.4 BREAKDOWN: 2017/18 TRANSFERS TO MUNICIPALITIES AND ENTITIES
CITY OF JOHANNESBURG
Amount Transferred = R
Expenditure = R
Balance = R
NAME OF PROJECT
PLANNED TARGETS
BUDGET ALLOCATION
TOTAL ACHIEVEMENT
PROGRESS
Kliptown
221 R 16
Finetown Proper 79
25 Units at roof level
Golden Triangle 91 R 49
42 Units at foundations 49 Units at wallplate
Riversideview
972 R
480
748 Units at wallplate
Fleurhof
204 R
432 Units at roof level
South Hills 64 R
204 Units at roof level

23. 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 R
CITY OF TSHWANE
Rama City
173 R
Awaiting NHBRC enrolment
Mamelodi Erf 29355 72 R
Contractor back on site after being chased off site by local business forum.
Garankuwa X10
160 R
Structural assessment report received on 03 March Consultant finalising tender documents.
Thorntree View
235 R
Work in Progress slabs, 80 wallplate and 30 roofed.
Fortwest Ext 4&5
300 R
Procurement process at final stages with tender closed on 02 March 2018 and evaluation scheduled for 05 March 2018.

24. 5.6 BREAKDOWN: 2017/18 TRANSFERS TO ENTITIES AND MUNICIPALITIES
CITY OF EKURHULENI
Amount Transferred = R
Expenditure = R
Balance = R
NAME OF PROJECT
PLANNED TARGETS
BUDGET ALLOCATION
TOTAL ACHIEVED
PROGRESS
Mayfield Ext 32 and 34
328 R
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

25. 5.7 BREAKDOWN: 2017/18 TRANSFERS TO MUNICIPALITIES AND ENTITIES
MOGALE LOCAL MUNICIPALITY
Amount Transferred = R
Expenditure = R
Balance = R
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) R
Complete
Badirile Portion 18
200 (H) 0 (S) R
0 (H) 0 (S)
Brickvale Tarlton
630 (H) 0 (S) R

26. 5.1 BREAKDOWN: 2017/18 TRANSFERS TO MUNICIPALITIES AND ENTITIES
RAND WEST LOCAL MUNICIPALITY
Amount Transferred = R
Expenditure = R
Balance = R
NAME OF PROJECT
PLANNED TARGETS (HOUSES& STANDS)
BUDGET ALLOCATION
TOTAL ACHIEVED (HOUSES & STANDS)
PROGRESS
Construction of 20Ml Droogeheuwel Water Reservoir and 2Ml elevated Tower R
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 R
A service provider was appointed to commence with the designs and construction.

27. 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 R
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 R
Consultants appointed and commencement with the feasibility studies and data capturing
Township establishment process for Jabulani and portion 48 Badirile R
Finalising appointment of consultants to undertake Geotechnical investigation, EIA and township establishment in Jabulani and portion 48 Badirile.

28. 5.9 BREAKDOWN: 2017/18 TRANSFERS TO MUNICIPALITIES AND ENTITIES
MERANGFONG CITY
Amount Transferred = R
Expenditure = R
Balance = R
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 R
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 R
Contractors for electrical work appointed.

29. 5.10 BREAKDOWN: 2017/18 TRANSFERS TO MUNICIPALITIES AND ENTITIES
HOUSING DEVELOPMENT AGENCY (HDA)
Amount Transferred = R
Expenditure = R0
Balance = R
NAME OF PROJECT
PLANNED TARGETS (HOUSES& STANDS)
BUDGET ALLOCATION
TOTAL ACHIEVED (HOUSES & STANDS)
PROGRESS
Palm Ridge Ext.9
1060 R
849
961 Foundations and 927 wallplates
Eden Park West & Ext.1
100 R
100 Foundations and 100 wallplates
Chief Albert Luthuli Ext.4
326 R
151
272 Foundations and 244 wallplates
McKenzieville Ext.2
300 R 90
297 Foundations and 210 wallplates
Kagiso Ext.13
223 R 25
185 Foundations and 154 wallplates

30. 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 R
262
335 Foundations and 266 wallplates
Nellmapius Ext.24
395
163
320 Foundations and 169 wallplates
Nellmapius Ext.6
106 R
10 Foundations and 0 wallplates
Temba View Ext.1
218 R 4
70 Foundations and 30 wallplates
Mahube Valley Ext.2
137 R 2
107 Foundations and 23 wallplates
Lufhereng Military Veterans 30 R 12
28 Foundations and 28 wallplates
Riverside/Diepsloot
160 R
Complete

31. 5.12 BREAKDOWN: 2017/18 TRANSFERS TO MUNICIPALITIES AND ENTITIES
GAUTENG PARTNERSHIP FUND (GPF)
Amount Transferred = R
Expenditure = R
Balance = R
NAME OF PROJECT
PLANNED TARGETS (HOUSES& STANDS)
BUDGET ALLOCATION
TOTAL ACHIEVED (HOUSES & STANDS)
PROGRESS
Erf 1673 Benoni, Ekurhuleni Municipality 18 R
18 (H) 0 (S)
Complete
Erf 8292 Olievenhoutbosch Ext 36 88 R
88 (H) 0 (S)
Ervens 31,32,33,59 & 60 Bertrams 57 R
57 (H) 0 (S)
Pomona Ext 75
118 R
118 (H) 0 (S)
Ervens 1499& 1450, Karen Park Ext 52, Pretoria
176 R
32 (H) 0 (S)
The 144 units are 80% complete

32. 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 Berea 38 R
Project is 96% complete
Erf 1191 Rayton Ext 7 24 R
24 units complete, POE to be submitted
ERF 2682 Kempton Park 50 R
Project is 94% complete.
Erf 533 & 534 Germiston 19 R
Project is 97% complete.
Portion 1&2 of erf 1871 Albertville 15 R
Project is 95% complete
Benoni 18 R
Complete
Cnr Main and Goud Street, JHB CBD 70 R
Erf 2909 Jeppestown 32 R
Project is 85% complete

33. THANK YOU