PRESENTATION TO THE

PORTFOLIO COMMITTEE ON HUMAN SETTLEMENTS – 4TH

QUARTERLY REPORT 2010/2011

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STRUCTURE

• Achievements

• Challenges

• Corrective Measures

ACHIEVEMENTS – Prog.1Internal Audit; Risk Management and Special Investigations

• Risk Management Committee reviewed the department al risk register

• The Audit Committee reviewed the departmental financial and audit performance

• Audits reviews were conducted to test adequacy and effectiveness of system of internal control

• Division of revenue framework high level review was conducted at eight provincial level to determine adequacy of control for the management

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ACHIEVEMENTS –Prog.1 cont.

• Revised Whistle Blowing Policy ; Fraud policy & Plan to effectively deal with fraud and corruption in the department

• 111 government officials were arrested and 871 were convicted. Different sentences were handed down

• 308 Acknowledgement of Debt (AOD) to the value of R4,015,879 were signed

• A total amount of R2,532,993 has been recovered from the signed AOD

• 202 disciplinary files were prepared during the period under review.

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ACHIEVEMENTS – Prog. 1 cont

Administration

•The transfer of the Sanitation Unit from the previous Department of Water Affairs and Forestry.

•12 Reports on the Training and Skills Development Committee activities.

•Appointment of Sanitation staff.

•Capacity of 74% filled funded posts achieved.

•100% of compliance with conditions of service.

•5 Policies were reviewed and implemented.

•12 Reports on the Bargaining Chamber activities.5

ACHIEVEMENTS- Prog. 1 cont.

Legal Services

•The Sectional Titles Schemes Management Bill and Community Schemes Ombud Service Bill were passed by the National Assembly;

•Provincial Information Sessions on the Rental Housing Amendment Bill were completed, Bill finalized and submitted to the Office of State Law Advisor for certification;

•The Social Housing Regulations were finalized and submitted to Parliament for consultation;

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ACHIEVEMENTS- Prog. 1 cont.

• Implementation of the Housing Consumers Protection Measures Act, Social Housing Act and Housing Development Agency Act was monitored

• A revised framework for the Human Settlements Policy and Bill was developed

• A request for a policy deviation by the DPSA for a special housing assistance deal for public servants was received. Policy proposals were formulated on the matter and submitted for approval

• A discussion document was developed in respect of the published Land Tenure Security Bill.

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ACHIEVEMENTS – Prog. 2

Housing Policy; Research and Monitoring

•Economic Impact of Government Housing Programmes in low cost housing construction: a final draft report of the study was concluded and presented to the department for comments on 31 March 2011.

•Assessment of the performance of government subsidised housing as an asset: the first results on the research has been completed.

•The costs of building an informal dwelling in informal settlements: First phase of the project was completed with data collected in Gauteng, Kwa Zulu Natal, Western Cape and Eastern Cape Provinces. 8

ACHIEVEMENTS – Prog. 2 cont.

• Understanding beneficiaries’ perceptions on alternative technologies: Initial interviews with provincial officials have been conducted; three interviews in Gauteng, one in Eastern Cape and in Northern Cape. Focus groups discussions have taken place in Gauteng and Northern Cape.

• The research on International strategies in resolving housing affordability problems: the study is in progress.

• Revised Monitoring, Evaluation and Impact Assessment Policy and Implementation Guidelines for the 2010/11 financial year were distributed to Provincial Human Settlements Departments for implementation;

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ACHIEVEMENTS – Prog. 2 cont.

• Physical verification of project performance done in all Provinces and monitoring reports completed;

• MEIA System updated with performance information of Provincial Human Settlements Departments regarding the third quarter of the 2010/11 financial year and evaluation of non-financial performance report submitted to National Treasury

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ACHIEVEMENTS- Prog. 3

Planning and Delivery Support

•Partnered with National Treasury with respect to the Conditional Grant.

•Partnered with National Department of Rural Development & Land Reform :Land Use Management Bill.

•Partnered with Presidency with respect to the Land Use Management Bill .

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ACHIEVEMENTS – Prog. 3 cont.

• 7 (Seven) out of 9 final approved Provincial Conditional Grant Business Plans: North West, Northern Cape, Western Cape, Free State, Mpumalanga and Limpopo.

• Developed the Terms of Reference on the Technical Guide for Human Settlement Planning and Design (Red Book).

• Report on the reasons for projects being blocked compiled.

•  Prepared and produced Quarterly report on slow moving projects in danger of becoming blocked.

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ACHIEVEMENTS – Prog. 3 cont.

• Phase three of the Sustainable Communities programme was implemented (training of community members).

• The WITS business school certificate programme for officials was implemented.

• The identified capacity development intervention with the University of Johannesburg and Shisaka was implemented

• The recruitment of Cubans was facilitated through the development of Terms of references for the recruitment of Cuban Technical Advisors for Sanitation unit and Mpumalanga Province. The actual recruitment will take place in the 2011/12 financial year .

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ACHIEVEMENTS– Prog. 3 cont.

• A Sanitation Policy discussion document was developed.

• 8426 households were served with sanitation facilities through the ACIP programme.

• 27 485 people were impacted with health and hygiene education during the implementation of ACIP and RHIP programmes.

• Free Basic Sanitation was rolled out to 9 Water Services Authorities.

• 27 485 job opportunities were created through the RHIP programme.

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ACHIEVEMENTS – Prog. 3 cont.

• 21 604 youths were enrolled in training programme.

• 30 SMMEs were registered in DTI database and 50 in municipal database

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ACHIEVEMENTS- Prog 4

Chief Financial Officer

•Interim financial statements for December 2010 were successfully submitted to National Treasury on the 31st of January 2011.

•The special training on Supply Chain Management done and in total 46 staff members attended.

•Monthly bank reconciliation and supply chain management reports were submitted to National Treasury.

•The Department has met the prescribed submission dates of monthly expenditure reports from provinces in respect of December 2010, January 2011 and February 2011 to National Treasury.

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ACHIEVEMENTS - Prog 4 cont

• The request for stopping of the withheld funds and re-allocation to other provinces of the Human Settlements Development Grant in terms of section 16, 17 & 18 of the Division of Revenue Act was approved by the Minister of Finance.

• Free State and KwaZulu-Natal provinces allocations have been reduced by R263 million and R80 million respectively.

• Eastern Cape allocation was therefore increased by R39 million, Limpopo province and Northern Cape allocation increased by R130 million and R174 million respectively. 

• The Departmental monthly in year monitoring reports were submitted to National Treasury on 13 January, 15 February and 15 March 2011.

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ACHIEVEMENTS – Prog. 4 cont

• The Department’s final 2011 estimates of expenditure chapter (ENE) was submitted to National Treasury during January 2011.

• A total number of 123 SCN’s were received from the provinces and all were successfully completed during this quarter.

• Housing Equity met with ABSA’s affordable housing unit. This unit intends to organize a campaign on extensions and renovations of property in three different provinces aimed at people earning R3 500 and R15 000 per month. The department, together with ABSA’s affordable housing unit is looking into financing houses in Botleng development project (in Delmas, Mpumalanga).

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ACHIEVEMENTS –Prog. 4 cont.

• The business case of the new Mortgage Insurance subsidiary has been approved by National Housing Financial Corporation’s (NFHC) board of directors and submitted to National Treasury. Other stakeholders such as the Financial Services Board and South African Reserve Bank also have to approve some of the processes initiated by the NFHC.

• Guidance was provided to the Meriting Community representatives as to how home loans and bond payments work. The community was in dispute with the Mortgage Capital and eviction orders had been issued. This education enabled and empowered the community in terms of bond payments. Through meetings with the community and Mortgage Capital attempt was made to find a solution.

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ACHIEVEMENTS – Prog. 5

Chief of Operations

• 2011/14 Departmental Strategic and Performance Plans were approved

Transformation

• Provincial Housing Departments were engaged to improve the alignment and accuracy of housing delivery statistics and information. Linkages with provinces were enhanced to facilitate the gathering of information on a variety of sector matters;

• Engagements for information purposes with Metropolitan Municipalities were undertaken;

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ACHIEVEMENTS – Prog. 5 cont.

• Accessibility to housing related information and knowledge services was ensured through the Library Resource Centre and the Info Hub;

• Health and Productivity Policy aligned to DPSA policy framework• Departmental Health and Wellness Programme aligned to DPSA

framework• Implementation of the 2011 Annual Implementation Plan under

the Co-operation Arrangement on Social Rental Housing with the Netherlands

Entities Governance Oversight• A total of R126m was transferred to departmental entities

(entities)

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CHALLENGES – Prog.1

Internal Audit; Risk Management and Special Investigations

• Delay in finalisation of Departmental strategic plan, which result in non -completion of the 2011/12 Risk Assessment

• Ineffective Risk Management Committee (RMC) as result of poor attendance and participation of the RMC Risk Owners.

• Inadequate staff capacity due to unfunded and vacant positions and the delay in the filling of funded posts

• Partial Implementation of the Whistle Blowing Policy and Fraud Policy and Fraud Prevention Plan because of limited capacity within the Special Investigation Directorate

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CHALLENGES – Prog.2

Housing Policy; Research and Monitoring

• Capacity to verify performance of all running projects in the nine Provinces;

• Reliability of reported performance data;

• Sufficient and timeous availability of funding for impact assessment studies

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CHALLENGES – Prog.3Planning and Delivery Support

• Cooperation of Provincial Departments.

• Insufficient funding for bulk infrastructure in National Priority Projects.

• Lack of dedicated personnel at provincial and municipal levels.

• Lack of funding for Priority Projects , Municipalities Programmes and Capacity at Municipalities.

• Lack of PHP resources/ units within the Provincial Human Settlements Departments and at the Local level.

• Lack of PHP resources/ units within the Provincial Human Settlements Departments and at the Local level. 24

CHALLENGES – Prog.4

Chief Financial Officer

• Late submission of business plans, monthly and quarterly grant performance reports.

• Non submission of other statutory reports such as priority projects reports and reports on transfers to public entities

• Failure by provinces to inform us on time of change in their banking details on time.

• Failure of the financial institutions to disclose HLAMDA information on their financial statements

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CHALLENGES - Prog.5 cont.

Chief of Operations

• Entities Governance Oversight has experienced a delay in payments of contractors.

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CORRECTIVE MEASURES – Prog.1

Internal Audit; Risk Management and Special Investigations

• Risk Management Directorate is in a process of conducting risk assessment for 2011/12 at the branch level.

• Risk Management to be embedded in the Key Performance Areas (KPA) of the Senior Management Staff (SMS) members.

• Request for funding all unfunded positions

• Finalize the recruitment process for all the funded positions [1 x Deputy Director: Special Investigations and 3 x Assistant Director: Special Investigations] to be able to deal with internal investigations and implement policies and programs.

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CORRECTIVE MEASURES- Prog.2

• Housing Policy; Research and Monitoring put mechanisms in place to streamline planning process of impact assessments studies;

• Continuous interaction with PHSDs to obtain more reliable data on performance of projects;

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CORRECTIVE MEASURES- Prog.3

• Planning and Delivery Support will ensure that the Sector institutional policies and strategies are developed and implemented after the turnaround process has been concluded, as it should inform the terms of reference.

• Implementation of Human Settlements Inspector Training programme in partnership with NHBRC and provincial departments deferred to the 2011/12 financial year.

• Ensure the alignment of plans across all three spheres of government

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CORRECTIVE MEASURES- Prog.3

• Utilisation of the Cuban Technical Advisors in PHP projects at the Provincial and Local level.

• The department will take over this function by out-sourcing this piece of work for a service provider to design a new template that works.

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CORRECTIVE MEASURES – Prog.5

• Sector Information Management will ensure the finalisation of Agreements with SITA

• Consolidate the National Housing Needs Register – integrating data from additional municipalities

• Enhance accuracy in data sets through involving provinces and municipalities in verification processes, and in accurate project location mapping;

• Ensure access to systems and business information

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CORRECTIVE MEASURES- Prog.5 cont

• International Relations will constantly monitor the progress and the identification of alternative projects that are moving and could be suitable for the installation of solar water heaters and other measures.

• International Relations will also develop a comprehensive approach to manage donor-funded programmes, fill vacancy for ODA project manager

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THANK YOU

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