1. MPUMALANGA DEPARTMENT OF HOUSING
PRESENTATION ON THE PERFORMANCE OF THE DEPARTMENT FOR 2007/08 AND BUDGETS FOR 2008/09 12 MARCH 2008
MPUMALANGA DEPARTMENT OF HOUSING

2. KEY FOCUS AREAS FOR 2007/08
Old projects are still the first priority in the province. The Informal settlement upgrade program
Emalahleni Municipality - Emsagweni and Enkanini
Mkhondo Municipality
Servicing of sites (Phase Approach)
Thaba Chweu
Emalahleni
Steve Tshwete
Mkhondo
Rental stock including the hostel upgrade program
Acquisition of land this year for integrated human settlements

3. EXPENDITURE V/S BUDGET
Description
R’000
Main appropriation
526,286
Adjusted Budget
676,286
Total Expenditure
652,191
(Over)/Under Exp
24,095
% Spending – March 2008 (Adjustment appropriation)
96%

4. EXPENDITURE V/S CASH FLOW PROJECTIONS

5. EXPENDITURE TRENDS FOR 07/08

6. ACHIEVEMENTS Units Delivered for April - March 2008 = 12,491
Units Projected for the year 8,548
% Delivered for the year – 146%

7. PROPERTIES PURCHASED BY THE DEPARTMENT DIRECTLY IN 2007/08

8. PROPERTIES PURCHASED THROUGH MHFCo IN 2006/07
Waterval Hillsview (0+2)
R 25,000,000.00
Waterval Hillsview (5)
R 4,224,000.00
Plot 52 Central Estate Whiteriver
R 4,695,000.00
49 White River Estates
R 8,400,000.00
R 42,319,000.00

9. CHALLENGES
Severe staff shortages especially within the Technical Directorate
Poor quality of houses especially on old projects
Housing backlog 260,000 housing units
Slow delivery of houses due to capacity problems of the contractors
Fraud cases cause delays on the delivery of houses on projects affected

10. CHALLENGES
Lengthy processes of converting Social Housing Institutions into municipal entities impact negatively on plans and expenditure of this instrument
The NHBRC is moving slow in registration of projects

11. CHALLENGES Beneficiary problems
Projects with insufficient number of beneficiaries These are projects where the municipalities did not approve enough beneficiaries.
Projects with no beneficiaries
On these projects the municipalities did not approve any beneficiaries. Most of the projects affected were new projects.
Projects with insufficient beneficiaries, but houses built
On these projects the department had built houses but the municipalities did not provide enough beneficiaries.

12. CHALLENGES Land related problems
These are projects affected by wetlands, dolomite, flood line and double allocations. These will have to be closed off and new projects identified

13. INCOMPLETE HOUSES AS AT 31 MARCH 2008

14. STRATEGIC INTERVENTION
Where the number of beneficiaries is less than the number of units allocated to the project. These projects will have to be reduced to the number of beneficiaries approved and closed off.
Where the beneficiaries are more than the number of units approved, in cases like these the department will have to identify new projects where these additional beneficiaries will be relocated to.
Where the number of houses built is more than the number of beneficiaries, in these cases the municipalities will have to identify more beneficiaries.

15. STRATEGIC INTERVENTION
Future allocations will only be considered where the municipality has identified beneficiaries.
Some of the dormant projects where the problems are of such a nature that they cannot be resolved will be closed off and new projects identified, subject to the availability of beneficiaries from the municipalities.
Review of the organorgram, subject to the availability of funds
Use Operational Capital to increase capacity of the Technical unit through the establishment of PMU’s
Intensify the use of NHBRC

16. KEY FOCUS AREAS FOR 2008/09
Old projects (incomplete houses) are still the first priority in the province.
The Informal settlement upgrade program
Emalahleni Municipality - Emsagweni and Enkanini
Mkhondo Municipality
Rental stock
Community Residential Units (CRU’s)
Operational Support to Housing Associations
Planning for Integrated Human Settlements

17. BREAKDOWN OF THE 2008/09 IMPLEMENTATION PLAN PER MUNICIPALITY

18. BREAKDOWN OF THE 2008/09 IMPLEMENTATION PLAN

19. BREAKDOWN OF THE 2008/09 IMPLEMENTATION PLAN

20. PLANS FOR 2008/09 BREAKDOWN PER INSTRUMENT

21. PLANS FOR 2008/09 BREAKDOWN PER INSTRUMENT

22. CASH FLOW PROJECTIONS FOR 2008/09

23. MTEF BUDGET YEAR AMOUNT R’000 2007/2008 526,286 2008/2009 629,210
2009/2010
736,022

24. THANK YOU