establishment of temporary residential areas and

HOUSES SECURITY COMFORT

Establishment of Temporary Residential Areas

and Construction of Temporary Residential Units:

Findings of the Auditor-General’s Special Audit

PRESENTATION TO PORTFOLIO COMMITTEE - 06 October 2020

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Presentation Outline

1. Auditor-General’s findings – Special Audit

2. Applicable Policy, Norms and Standards

3. Projects currently underway

a. Procurement Processes followed by implementing agents

b. Contracted projects

c. Pictorial profile

4. Steps taken to remedy non-compliance

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1. Preliminary Findings from AG’s Special Audit

1. There are indicators of non-compliance with

a) emergency procurement regulations,

b) Norms and Standards (poor quality)

c) Pricing (incorrect pricing) and

d) Allocation guidelines (incorrect allocations) of TRUs.

These are areas of concern where fraudulent activities may be committed and these

emerging risks will be considered during the audit of the nine outstanding projects.

2. the work performed by implementing agents, including the HDA, heightens

the emerging risks.

3. There is weak coordination and accountability at sector level (for the use of

allocated budgets, tracking of expenditure incurred and alignment to the

overall sector implementation plan)

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2. Applicable policy, norms and standards in

relation to temporary shelter & housing assistance

4


The Policy is contained in the National Housing Code which is requirement in terms of Section 4 of the

Housing Act,1997 . Section 3(2) of the Housing Act 1997 (Act No. 107 of 1997), and provides that the Minister

must, after consultation with MINMEC determine National policy and norms and standards; Section 3(3)(g)

provides that the Minister may institute and finance National Housing Programmes;

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FINANCIAL INTERVENTION INCREMENTAL

INTERVENTION

SOCIAL & RENTAL RURAL

INTERVENTION

Non Credit Linked Individual Emergency Housing Assistance

Programme

Social Housing Farm Residents Housing Assistance

programme

Credit Linked Individual Integrated Residential

Development

Community Residential Programme Communal Land Rights

Finance Linked (FLISP) Upgrading of Informal Settlements Institutional Subsidies

Accreditation of municipalities Enhanced PHP Special Housing Needs

Social & Economic Amenities Consolidation Cooperative Housing

Land Acquisition

Enhanced Extended Discount Benefit

Scheme (EEDBS)

Housing Chapter of IDP

OPSCAP

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The Policy Prescripts – TRA’s and TRU’s


Emergency Housing Assistance

1. Provides temporary housing relief to households in distress as a first phase towards a permanent housing solution; The programme applies in a number of cases e.g.

• On occurance of Disasters & other emergencies

• Persons living in dangerous conditions;

• Households facing the threat of imminent evictions;

2. The main objective of this Programme is to providetemporary assistance in a form of :

• Secure access to land and/or

• Basic municipal engineering services and/or

• Shelter

3. It is aimed at expediting action in order to relieve the plight of persons with exceptional housing needs;

4. Programme provides for special arrangements in terms ofwhich the Housing Programme can address the diversity ofneeds of households in emergency housing situations;

Informal Settlement Upgrading

1. To facilitate a structured in situ upgrading of

informal settlements to achieve

– Tenure Security

– Health and Security

– Empowerment

2. Application of the Programme:

• The Programme is applicable on the upgraded site or relocation site

• includes cases where people can be relocated for a variety of reasons including de densification of settlements . Involve possible relocation and resettlement of people on a voluntary and cooperative basis

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The Policy Prescripts – TRA’s and TRU’s

PS: Policy inspired by the Constitutional Court Ruling in respect of Langa Informal

Settlement Upgrading - N2 Gateway Project, City of Cape Town


1. The floor area of a shelter should be at least 24m² and may vary up to

30m² depending on the need and possibilities within the funding limits.

2. Temporary shelter should be appropriate for the specific environment and

as far as possible be acceptable to beneficiaries.

3. The technical specifications are applicable to all municipal and

provincial governments

4. Procurement policies in terms of the Public or Municipal Finance

Management Acts remain applicable.

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Norms and Standards – TRA’s and TRU’s


Element Basic Product Performance Requirement Guide specifications

Roof covering Trafficable, waterproof, to suit purlin spacing. 0.6mm thick galvanised mild steel or 0.5 mm thick galvanised full hard or similar

approved profile.

Side cladding Meet OHS Act requirements. Safe, sustaining of

normal weather conditions, adequate resistance

to water penetration. Minimum height 2.2 m

0.6 mm thick galvanised mild steel or 0.5 mm full hard galvanized Nu-RIB or similar

approved profile cladding.

Columns and

anchor bolts

Framed structure Strength for stable, durable

structure.

76 mm x 76 mm x 3 mm square hollow section plus 2- 30 x 30 x 3 angles welded to

column x 2200 mm long with column welded to 200 x 100 x 10 mm plate at the top

and a 200 x 200 x 10 mm base plate welded to bottom end. Base plates fixed to

the concrete footing with 4-M12 expansion bolts.

Column footings Concrete 600 x 600 x 300 mm thick concrete (20 Mpa) in suitable foundation material.

Rafters Strength for stable, durable structure. Cold rolled 125 x 50 x 20 x 2.5 mm lipped channels, with strengthening at eaves

connection and manufactured as indicated on plan with 5 degree pitch.

Purlins: Strength for stable durable structure. Cold rolled 125 x 50 x 20 x 2.5 mm lipped channels x 3976 mm long bolted to rafters

as indicated on plan with 90 x 125 x 5 mm plates and 2 x M12 bolts.

Door and window

posts and frames:

Strength for stable, durable structure. Cold rolled 75 x 50 x 20 x 2.5 mm upper channel posts with 6 mm thick end plates

bolted to rafter and floor as shown on drawing.

Window Minimum 5% of floor area framed

and glazed.

Standard type D7 with glazing.

Door: Framed, lockable and hinged. Purpose made framed single panel steel door with sheeting, hinged one side with

barrel bolt to inside and hasp and staple on outside.

Flooring: Level, solid on compacted fill, 150 mm above

ground.

Concrete floor 75 mm (20 Mpa concrete) on compacted soil to 93% MOD AASHTO

density.

Thermal Efficiency: To suit roofing material

and local conditions.

Bubble foil with straining wires below roof sheeting.

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Minimum Specifications – TRA’s and TRU’s


Type of Service Level of Service

Water The provision of access to a water point or tap for every 25 families must be provided. The

waterlines must be usable in a permanent configuration or layout in situations where future

upgrading is envisaged as a first option towards a permanent housing situation.

Sanitation i. Temporary sanitary facilities must be provided. i. Due to varying geographical and similar conditions, facilities to be provided may vary from

area to area. Where conditions permit the use of Ventilated Improved Pit Latrines (VIP toilets)

must be provided as a first option. The Municipality must therefore ensure that the system

employed is suitable for the particular conditions.

ii. An acceptable standard will be one VIP toilet per five families. Cost should be estimated per family on a shared basis in the suggested dense settlement pattern. In circumstances where

soil and other site conditions do not allow for the use of VIP toilets, alternative systems must be

investigated. A small-bore sewerage or other appropriate system (to be used on a shared

basis with one toilet per five families within the suggested settlement pattern) could be

provided.

ii. The sewerage system must as far as possible be usable in a permanent configuration or layout in situations where future upgrading is envisaged as a first option towards a permanent housing

situation.

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Engineering Specifications – TRA’s and TRU’s


Type of Service Level of Service

Access Roads

and storm Water

A main access road and open lined storm water management system must be

provided.

Internal roads must be formed through the removal of obstructions such as vegetation

and by use of vehicles only, except in the case of extraordinary circumstances.

All shelters need not necessarily have vehicle access.

Settlement layouts must provide for access of utility vehicles such as ambulance and

fire services.

Street Lighting This Programme will only fund the provision of high-mast lighting in

special circumstances.

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Norms and Standards – TRA’s and TRU’s


1. Assistance to compile project applications

2. Land acquisition,

3. Settlement planning ,

4. Basic municipal engineering services design,

5. Basic municipal engineering services

6. Land surveying,

7. Temporary shelter or supply of materials for the construction thereof

8. Relocation assistance

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Coverage of Applicable Subsidy Quantum: Itemised breakdown

Subsidy Amount:

R64 441 00


3. Procurement Process Followed1. Housing Development Agency (contracted as Implementing Agent by some Provinces & Metros)

Proposals were invited from service providers already on pre-approved panels in line with Procurement

policy. Bid Evaluation and Adjudication Committees were constituted to evaluate and adjudicate

received proposals.

Approved service providers were allocated units in accordance with points scoring on functionality,

BEEE and CIDB Grading.

2. Free State Province

The Province undertook a bid process (COVID 19/B01/2019/2020) which provided for an invitation of

quotations for the relocation and construction of temporary shelters as well as ablution facilities.

3. Eastern Cape Province

The Province undertook a bid process that led to the appointment of four service providers to deliver

TRUs

4. Nelson Mandela Bay Municipality and City of Johannesburg

The procurement of service providers followed a competitive bidding process utilizing pre-existing

databases of service providers. Quotations were accordingly obtained and evaluated by the Metros.

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4. Current Projects: Establishment of Temporary Residential Areas and

Construction of Temporary Residential Units Implementing

Province and/or

Municipality

Project Name

and Number of Units

Need and Desirability Programme and

Development Plan

Name of Contractor(s)

and Director(s)

Units Cost,

Applicable

Variation(s) Project

Cost and ProgressEastern Cape

Buffalo City Metropolitan

Municipality

Mdantsane

Duncan Village

1174 units

The establishment of the TRU

were planned before Covid-

19, and are required as part of

the Greater Duncan Village

Redevelopment Plan

Emergency Housing

Programme - The Greater

Duncan Village

Redevelopment Plan provides

for development of TRUs to

facilitate development

NJR Projects

Directors:

Jeophrey Ramahlaleroa

1. Units’ Cost: R64,441.00

2. Variation: R11,348,060

3. Services’ Costs:

R86 106 471

4. Project Unit Cost:

R173,108,265

Progress: 190 units

completed

Eastern Cape

Nelson Mandela Bay

Metropolitan Municipality

(NMBMM)

KwaNobuhle Area 11 phase 4

500 units

COVID-19 impact

minimisation and social

distancing

The relocation sites are part of

the NMBMM informal

settlements upgrading

programme, including

provision of site and services.

The TRUs construction

intervention is temporary with

permanent sites allocation.

The sites are serviced

Sakhekhaya Enterprises

Director(s) –

Mr S Vanada

1. Units Cost: R60,047.95

Progress: site establishment

stages

Jachvlakte

500 units

Mpiyakhe04

Directors –

Mr M Mpiyakhe


Progress: Site establishment

stages

Khayamnandi

500 units

SQT Construction and Civils

Directors –

Mr S Mpengesi

1. Units Cost: -R63,500.00

Progress: Site establishment

stages

Free State Province -

Maluti a Phofung Local

Municipality

Linda Mkhonto

638 units

Relocations were undertaken

to ensure minimisation of

COVID-19 impact and social

distancing

The implementation of the

project is part of the

Municipality Informal

Settlement Upgrading Plan

Rich Soil Resources

Director(s)

Isaac Segwabane

1. Unit Cost: R19,680.97

2. Ablution:R2,400.00

3. Relocations: R300.00

4. Project Cost:

5. Total Project Cost

R14,859,859.00

Progress: 638 units

completed


Implementing Province

and/or

Municipality

Project Name

and Number of Units


Development Plan


and Director(s)

Units Cost, Applicable

Variation(s) Project Cost

and Progress

Gauteng

City of Tshwane

Mamelodi Hostels

1000 units

The TRUs are established and

TRA’s constructed to

decongest the congested

Mamelodi Hostels, and funded

from the USDG, and forms part

of the CRU Redevelopment

and Upgrading Programme

The establishment and

construction of TRU and TRA’s

is in accordance with the

Mamelodi hostels

redevelopment plan. The units

will also be used to decant

targeted blocks as part of the

development.

Selby Construction CC

/Dipabala Projects and Civils

(Pty) Ltd

Directors

Selby Manthata Makoma

Manthata

Julitha Manthata

Kgoadi Boshielo

Gorogang Plant Hire

Directors

Layton Matlala

(500 units each)

“Contract A”

1. Unit Cost: -R64,441.00

2. Variation: R4,833,075.00

3. Ablution Block: -

R929,310.86

4. Project Cost

R37,982,885.86 (500

units)

“Contract B”

1. Unit Cost: R64,441.00

2. Variation: R4,833,075.00

3. Ablution Block:

R1,136,871.62

4. Project Cost:

R38,176,946.62 (500

units)

Progress: 200 units completed

Mamelodi Informal Settlements

100 units

The TRU and TRA are required

accommodate Mamelodi flood

victims. The households have

resided in halls and churches

since the floods

Households are

accommodated on permanent

stands provided with interim

services.

Erinite/S&L Construction JV

Directors

Clifton Sebatane

Lehotlo Ramokopa

Kennedy Dakile

Veronica Makhakhe

Ronnie Matabese

1. Unit Cost: R64,441.00

2. Variation: R966,615.00

3. Project Cost:

R7,408,015.00

Progress: 48 units completed

Gauteng -

City of Joburg

Alexandra

Madala Sports Field

880 units

The TRA and TRU are required

for the decongestion of Madala

Hostel

The construction of TRUs is in

accordance with the Madala

hostel redevelopment plan. The

units will also be used to

decant targeted blocks as part

of the hostel redevelopment.

SKS

Directors

Petrus Sphiwe Zwane

1. Unit Cost: R64,441.00

2. Services: R136,340,173

3. Project Cost:

R193,048,253.82

Progress: services installation

stages and pilot containers

Marlboro Sites

1600 units

The TRA and TRUs are

required for the decongestion

of Alex informal settlements

The construction of the TRUs is

in accordance with the Greater

Alex Redevelopment Plan.

Propower/Rembu

Directors

Tshilidzi Mukwevho

Thihanedzwi Rembulwani


2. Services: R156,782,943

3. Project Cost:

R259,888,543

Progress: services installation

stages and pilot containers


Implementing Province

and/or

Municipality

Project Name

and Number of Units


Development Plan


and Director(s)

Units Cost, Applicable

Variation(s) and Project

Cost

Eastern Cape Provincial

Department of HS

(OR Tambo District and

Alfred Nzo District)

Emergency Housing

assistance for 1400

familiesin the OR Tambo

and Alred Nzo Districts

1400 families whose

houses were damaged by

storms

Emergency & disaster

response

Squard Five: 292 TRUs

SQT Civils: 291 TRUs

Takela Group: 408 TRUs

Vitsha Trading: 408 TRUs

R64 441,00 per unit

Funded out of the

Emergency Housing Grant

Limpopo

Tzaneen

Talana Hostel

40 units


required to de-densify Talana

Hostel informal settlement

The hostel will be

redevelopment in terms of the

Community Residential Units

Development Programme

(CRU) Aventino Group

Directors

Constance Mohlala

1. Units’ Cost: R64,441.00

2. Project Cost:

R2,557 640.00

Progress: 40 units

completed. NHBRC

assessment of the units

completed. Remedial works

in accordance with the report

to be undertaken.

Limpopo

Feta Kgomo- Tubatse

Burgerfort Extension 10

152 units


required to reduce

overcrowding in densely

populated Burgerfort informal

settlements

The informal settlement site is

earmarked for development

of permanent housing units

and services

1. Unit Cost: R64,441.00

2. Ablution: R3,377,328.00

3. Project Cost:

R15,750,000.00

Progress: 50 units on the

ground, options for

permanent housing for the

balance considered.


Buffalo City - Duncan Village, Mdantsane Site BCMM

R64 441, 00 per unit


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Mamelodi Mooiplaats (R64 441,00) Mamelodi Hostel (R64 441, 00 per unit)

Talana Hostel,

Tzaneen

Municipality

R64 441,00 per unit


Alexandra TRUs - City of Johannesburg



Free State: Linda Mkhonto - 3mx3m @ R22 000, 00 per unit

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EC Province: Various Emergency Housing ProjectsMpindweni Village – KSD LM


Qinisa - Port St Johns LM


Ntabankulu LM

R64 441,00 per unit

TALANA PROJECT: QUALITY ASSESSMENT BY NHBRC

• In August 2020-the NHBRC was requested by National Dept of Human

Settlements ( NDHS) to conduct quality and compliance verification

of Talana Project in Tzaneen in Limpopo.

• The assessment was completed and the report with findings was

submitted

• The NDHS further requested the NHBRC to conduct more

assessments of other TRU projects already in implementation.

• The assessment consists of quality verification and compliance

against:

• Approved specifications

• Industry Norms and Standards

• Report on any Variance

FINDINGS BY NHBRC

The Health & Safety requirements in the TALANA TRUs project

are compromised.

RECOMMENDATIONS FOR THE UNITS TO BE RECTIFIED

Stage 1. Procurement & Contracting

Invite System Certifications that:

• Comply with the National Building Regulation, A20 classification

and designations of occupancies particularly Table 1 of

Occupancy or Building Classification, H3 and H4 at are in

compliant

• In possession of a valid and active confirmation of certification

of building systems by Agrément-SA

RECOMMENDATIONS

Stage 2. Enforcement of Compliance

o The Service Provider, as required by the National Building Regulations and Building Standards Act, Act 103 of 1997 as amended, to ensure thato the plans, are to comply with the specifications and certificates as prescribed

by the National Building Regulations for any building erected by, or on behalf of the State.

o This should be lodged with the local authority in question for its information and comments before the commencement of erection of the structure.

o The Service Provider must comply with the relevant by-laws and other applicable legislation and codes applicable to each municipality


6. Response & steps taken by the NHDS1. Already Inspected all the TRU Projects to verify implementation progress

2. Directed NHBRC to undertake quality and compliance assessments

3. Convened Human Settlements MinMec (and Technical) to address non-

compliant TRUs.

4. Directed Accounting Officers (Provinces, Metros & HDA) to:

a) Take necessary steps immediately ensure the current TRU projects comply with Minimum

Norms & Standards BEFORE project closure and/or final invoice payment

b) Revisit current contracts to ensure value-for-money is derived

c) Consult with the NHBRC on specifications for TRU bids and implementation monitoring

d) Maintain records of TRUs as assets, allocation to users and lifecycle maintenance in TRAs

5. Review of possible procurement-related irregularities

6. NDHS to institute further action on non-compliant TRUs

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Thank you

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establishment of temporary residential areas and

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