Budgetary
Review and Recommendation Report of the Portfolio Committee on Human
Settlements on the Budget Vote 31 – Human Settlements for the financial year end 31 March 2012, dated 17
October 2012
In
2009, the President assented to the Money Bills Amendment Procedure and Related
Matters Bill. The Money Bills Amendment Procedure and Related Matters Act (No.
9 of 2009) came into effect on 16 April 2009. The Act aims to provide for a
procedure to amend money Bills before Parliament. In broad terms, the Act
provides the procedure for Parliament to amend the budget, which includes the
annual Division of Revenue Bill (although the bill is not classified as a money
bill in terms of the Constitution), the Annual Appropriation Bill and the
Adjustments Appropriation Bill. Provision is also made for the procedure to
amend other money Bills.
In light of the need to accelerate service delivery in order to meet
country’s developmental objective government adopted outcomes based delivery
approach. To effect the latter the President announced twelve (12) measurable
outcomes which will become the focus of policy and programme implementation.
These objectives, with associated and defined targets, should be reached by
2014, of which Outcome 8 relates directly to the Human Settlements targets.
It
is worth-noting that the President proclaimed the transfer of Sanitation function, which was
administered by the former Department of Water Affairs and Forestry to the
Department of Human Settlements. This
was attributed to the need for a more holistic focus as opposed to the mere
building of houses. Furthermore, in 2012, another Presidential proclamation
transferring the Estate Agency Affairs
Board (EAAB) from the Department of
Trade and Industry to the Department of Human Settlements was made. The EAAB’s mandate encompasses overall
regulation of the estate agency industry; monitoring compliance with industry norms
and standards; setting industry norms and standards; providing education and
training to estate agents; monitoring of market trends within the industry; and
administration of fidelity fund.
The
Budgetary Review and Recommendation Report (BRRR) of the Portfolio Committee on
Human Settlements, is based on the Committee’s engagement with the following
documentation:
Entities reporting to the
National Department of Human Settlements:
1.1 Mandate of the Portfolio Committee on Human
Settlements
The mandate of the Portfolio Committee on Human Settlements is to:
·
Consider legislation referred to it;
·
Initiate amendments to legislation;
·
Exercise oversight over the Department of Human Settlements,
its entities and implementing agents;
·
Consider international agreements referred to it;
·
Consider the budget vote of the Department of Human
Settlements
·
Consider the Annual Report of the Department of Human
Settlements and , its entities and implementing agents;
·
Facilitate public participation in its processes;
·
Facilitate appointments to statutory bodies, where
applicable;
·
Learn from international best practices through study tours,
etc;
·
Participate in international programmes, activities and
capacity building programmes.
1.2
The
The objective of the Department of Human
Settlements includes the following: to
determine finance, to promote, to co-ordinate, to communicate and to monitor
the implementation of housing policy and human settlements.[1]
Since the formulation of the Comprehensive Housing Plan in 2004, the Department
has conducted various initiatives to enhance the creation of comprehensive,
integrated, co-ordinate and sustainable human settlements and quality housing.
These initiatives include the review of the National Housing Code which
determines national norms and standards in respect of housing development, as
well as the provision of the Farm Worker/Occupier Housing Assistance Programme,
and the establishment of the Housing Development Agency. Subsequently during
the course of January 2010, Cabinet approved an outcome-based approach to the
mandate of the Department with the adoption of Outcome 8 – Sustainable Human
Settlements and Improved Quality of Household Life. Section 26 of the
Constitution of the
Table 1: Predetermined objectives 2011/12
Programme |
Voted for 2011/12 (R’000) |
Roll-over & adjustments (R’000) |
Virements (R’000) |
Total Allocation (R’000) |
Actual Expenditure spent (R’000) |
Over-/ under expenditure (R’000) |
Administration
|
232 435 |
676 |
-11000 |
222 111 |
166 237 |
55
874 |
Housing
Policy, Research & Monitoring |
39 215 |
227 |
- |
39 954 |
32 866 |
6
576 |
Housing
planning & delivery Support |
156 163 |
31848 |
5000 |
193 011 |
186 733 |
14
008 |
Housing
development Finance |
21 995
147 |
206352 |
- |
22 201
499 |
22 105
262 |
91
507 |
Strategic
Relations and Governance |
155 535 |
7943 |
6000 |
169 478 |
105 064 |
61
414 |
Total |
22 578 495 |
247046 |
- |
2 282 541 |
22 596 162 |
229 379 |
Source:
Annual report of the Department of Human Settlements
Programme |
Voted for 2011/12 |
Roll-over
& adjustments (R’000) |
Virements |
Total
Allocation (R’000) |
Expenditure
(R’000) |
(%) Spent |
Administration |
232 435 |
676 |
-11000 |
222 111 |
166 237 |
74.8% |
Housing Policy, Research & Monitoring |
39 215 |
227 |
- |
39 954 |
32 866 |
82.2% |
Housing planning & delivery Support |
156 163 |
31848 |
5000 |
193 011 |
186 733 |
96% |
Housing development Finance |
21 995 147 |
206352 |
- |
22 201 499 |
22 105 262 |
99.5% |
Strategic Relations and Governance |
155 535 |
7943 |
6000 |
169 478 |
105 064 |
61% |
Total |
22 578
495 |
247046 |
- |
2 282
541 |
22 596
162 |
99.0% |
Source: Annual report of the Department of Human
Settlements
Table 3: Departmental
report with Variances for 2011/12
Programme |
Voted for 2011/12 (R’000) |
Roll-over
& adjustments (R’000) |
Virements (R’000) |
Total
Allocation (R’000) |
Expenditure
(R’000) |
(%) Spent |
Variance (R’000) |
Administration |
232 435 |
676 |
-11000 |
222 111 |
166 237 |
74.8% |
55 874 |
Housing Policy, Research & Monitoring |
39 215 |
227 |
- |
39 954 |
32 866 |
82.2% |
6 576 |
Housing planning & delivery Support |
156 163 |
31848 |
5000 |
193 011 |
186 733 |
96% |
6 278 |
Housing development Finance |
21 995 147 |
206352 |
- |
22 201 499 |
22 105 262 |
99.5% |
96 237 |
Strategic Relations and Governance |
155 535 |
7943 |
6000 |
169 478 |
105 064 |
61% |
64 414 |
Total |
22 578
495 |
247046 |
- |
2 282
541 |
22 596
162 |
99.0% |
229 379 |
Source: Annual report of the Department of Human
Settlements
Performance
Analysis per Programme
2.1
Programme 1 – Administration
The purpose
of the programme is to provide strategic leadership and administrative and
management support services to the Department and promote and facilitate the
flow of information between the Department and its stakeholders.
The Department reported that the programme was initially allocated a
budget of R232.4 million during 2011/12 financial year. The expenditure on this
programme after the adjustments amounted to R222, 1 million which leaves the
variance of R55.8 million. However, taking into consideration the virements
that were made amounting to approximately R11million, a total expenditure
remains at approximately 74%.
The directorate: Special Investigations reported to
have spent only R25, 8 million of its original allocation of R56, 1 million
which was adjusted to R44, 7 million. It was indicated that under spending came
about as a result of late invoicing by the SIU. The Chief Directorate Internal
Audit, Risk Management and Special Investigations reported a saving of R18, 9
million but only R11, 3 million of the saving could be utilised.
The Department attributed the deviation from the
planned target to the unavailability of clients for opening meetings, client
delays in commenting on reports, the slow receipt of information required, as
well as capacity constraints in the Internal Audit function. In this respect,
the Department acknowledges that under-expenditure in Programme 1 is also due
to a moratorium placed on the filling of non-critical post pending the outcome
of the departmental turnaround strategy. This state of affairs is a critical
issue, and further engagement with the Department is required about what posts
constitute “non-critical.” There is a need to review the department’s inability
to meet targets on filling vacancies.
2.1.1 Comments
of the Portfolio Committee
The department’s under-spending has been attributed to
delays in refurbishing and acquiring office space. This has been a recurring
element over the past three years. The department’s inability to secure office
space has a negative impact on outputs, and ultimately service delivery.
There is lack of accountability as to where the
variance of R7.6 million that emanates from the money that was not spent by
the Chief Directorate Internal Audit,
Risk Management and Special Investigations
The Department, does not, however, indicate how this
“saving” was achieved. It should be noted that this sub-programme only managed
spend about 45% of the total of 31 audits planned for 2011/12, resulting in
seventeen audits not completed during the review period.
2.2 Programme 2 – Housing Policy,
Research and Monitoring
The purpose of the programme is to
develop and promote policies on human settlement and housing supported by a
responsive research agenda and to monitor and assess the implementation,
performance and impact of national housing policies and programmes.
The
programme was initially allocated R39.2 million during 2011/12 financial year
and this amount was adjusted with additional funding of R227 000 to provide for
salary increases. Programme 2 has spent approximately 82% of its allocated
budget.
The
Department indicated that the under-expenditure resulted from non-filling of
vacant posts. Another contributing factor was that a research project on the
development of a national framework to assess the sustainability of human
settlements was not completed as required.
It was reported that new
focus was on low-income housing contracts: Fifty nine housing projects were identified for investigation. A total
of 42 investigations were completed while 17 are ongoing. The total value of
the 59 identified contracts amounted to R4 179 610 935. Fruitless and wasteful
expenditure amounting to R27, 9 million was uncovered in respect of three
investigations. Potential losses suffered by the provincial Departments of Human
Settlements amounted to R71, 8 million and were uncovered in respect of five
investigations. Potential recoveries amounting to R101, 9 million were
identified in respect of three investigations. Disciplinary matters
(misconduct) in respect of departmental officials were identified in eight
investigations. The misconduct related mainly to transgressions of the National
Housing Act, the National Housing Code and the Public Finance Management Act (PFMA).
Project-level monitoring confirmed the existence of
good-quality constructions in all provinces that provide beneficiaries with a
formal dwelling, as well as access to basic services and secure tenure. In
addition, social and economic amenities are also provided. However, progress relating
to some projects is still hampered by, poor workmanship, slow administration of
beneficiaries, poor planning, project location, lack of beneficiary education
and alignment among various government departments. Initiatives to address
these challenges are being developed and implemented.
2.2.1 Comments of the Portfolio Committee
Program two (Housing Policy, Research and
Monitoring) is of high importance within the department. This program is
responsible for providing “capacity where there was lack thereof and
“conducting extensive research on the use of alternative technologies, and many
other critical aspects encompassed in Human Settlements”. There should not be a
logistical or incidental problem in spending funds allocated to research.
The capital allocated to research should be
relatively easily transferred into tangible
outcomes. There was a variance of R307, 000 in Management, R1, 104,000 in
Policy Development and R3, 059,000 in Research between the final appropriation
and the actual expenditure. In addition, the actual expenditure in management
and research has gone down since the previous year and only marginally
increased in policy development. This is strange considering that inflation
should indicate a need for a higher expenditure (that considerable inflation
has occurred this financial year is demonstrated by the report on page. 20) but
also in view of the lag that research has in the delivering of tangible
outcomes.
2.3 Programme 3: Housing Planning
and Delivery Support
The purpose of the programme is to
support the implementation and delivery, building capacity, and liaising and
communicating with stakeholders for effective housing and human settlements
programmes, and to co-ordinate and monitor the implementation of priority
projects and the sanitation programme.
Programme
3 was initially allocated R156.1 million and was adjusted to approximately
R200, 7 million. A total of R186.7million was spent which translates to 93%.
The under-expenditure was reported to be as a result of the moratorium on
filling of non-critical vacancies.
2.3.1 Comments by the Portfolio
Committee
The
Department’s expenditure reporting for this programme appears to be
inconsistent, with varied amounts cited in the 2011/12 annual report. For
example, one table reflects the adjusted appropriation as R200.7 million, while
another table in the same annual report reflects this as R193 million. However,
both figures are refuted by the 2012 Estimates of National Expenditure, as well
as the 2011 Adjusted Estimates of National Expenditure – which reflect the
adjusted appropriation as R195 million. Inconsistent and inaccurate expenditure
reporting by the Department has a negative impact on Parliament’s
constitutional mandate to perform effective and efficient oversight over the
Executive. Further, an annual report serves as an important instrument to give
an account as to how a department utilised money appropriated by Parliament,
and such account must be accurate and reliable.
The
Committee noted that there was a virement of R5 million from Programme 1.
However, the amount that is reflected from the section 32 reports of the national
treasury states that an amount of R7 million was recorded as a virement
contradictory to what the department has reported.
2.4 Programme 4: Housing Development
Finance
The programme is responsible for
funding housing programmes and human settlement development programmes. It also
provides financial and grant management services. Furthermore, it promotes
investment in housing finance. It mobilises and promotes financial probity
within housing institutions. In addition, it manages all matters provided for
the Home Loan Mortgage Disclosure Act (No. 63 of 2000).[2]
The
programme was allocated R21.9 billion, of which R14.9 billion was allocated to
the Human Settlements Development Grant. The Rural Household Infrastructure
Grant (RHIG) was allocated a total amount of R257, 5 million (2011/12) after
adjustments of R26 million from the roll-over, and out this amount an amount of
R187.3 million was spent which translates to 72% expenditure (under-expenditure
of R70.2 million was recorded. An amount of R487 million was allocated to the
Department’s entities. In the adjustment estimate additional funding of R180
million was provided for the Housing Disaster Relief Grant, while R344 000 was
provided for salary increases.
In
Programme 4 the Department has an under-expenditure of R91.5 million for the
year 2011/12.
The
Department indicated that the delay which resulted in the under-expenditure in
the provision of toilets. RHIG resulted in
resistance by some communities during
its implementation. Other factors which posed challenges in its implementation
are non-availability of the building materials and difficult conditions.
2.4.1 Comments by the Portfolio
Committee
It
should be noted that the Department’s expenditure reporting for this programmes
also appears to be flawed, since it indicates that through an adjustment the
allocation increased from R21.995 billion to R22.201 billion. However, both the
2012 Estimates of National Expenditure, as well as the 2011 Adjusted Estimates
of National Expenditure confirm that the programme was adjusted to R22.197
billion through a virement of R4 million to
Programme 3 for the payment of consultants and professional services
intended for the national upgrading programme.
Another
inaccuracy in reporting relates to the
allocation to the RHIG. According to the 2011/12 annual report this grant was
awarded R100 million, with a roll-over of R26 million in the adjustment
estimate. However, RHIG was in fact appropriated R231.5 million, which
increased to R257 million with the adjustment indicated above. The R100 million
referred to the Department was in fact the 2010/11 allocation to RHIG and not
the 2011/12 allocation, as reported by the Department’s 2011/12 annual report.
The
Portfolio Committee conferred with the Standing Committee on Appropriations
that the sanitation programme should remain with the Department.
Table 3: Housing Disaster Relief
Grant
Province |
Funds
allocated and transferred (R’000) |
Funds
spent R’000 |
Percentage
spent |
|
56 700 |
0 |
0% |
|
44 100 |
16 631 |
38% |
|
36 |
0 |
0% |
|
31 140 |
3 503 |
11% |
|
21 474 |
0 |
0% |
|
360 |
360 |
100% |
|
10 350 |
10 350 |
100% |
|
15 840 |
2 360 |
15% |
Total |
180 000 |
33 212 |
18% |
Source: Annual report of the Department of Human
Settlements
The
department indicated that the Disaster Relief Grant was received after the MTBS
process. These funds were transferred to the provinces only in February 2012
which made it impossible for some provinces to spend.
2.6 Programme 5: Strategic Relations
and Governance
Programme 5 is responsible for
overseeing the management of housing institutions through performance and
corporate planning monitoring as well as policy advocacy and governance
oversight. It provides integrated business solutions and support as well as
business information and related products by maintaining the housing and human
settlements database[3].
The
programme was initially allocated R155.5 million during the 2011/12 financial
year. This amount was adjusted with a roll-over amount of R4.3 million for
specialised services provided by the State Information Technology Agency, and
R3.196 million for the completion of the Department’s turnaround strategy.
Additional funding of R447 000 was provided for salary increases.
A
virement of R6 million was made from Programme 1 to fund the Govan Mbeki Human
Settlements Awards 2011/12.
A
total budget of programme 5 amounted to R166.4 million, of which R105.4 million
was spent. The under-spending of R61 million was mainly due to a delay in
payments for infrastructure, architectural enhancement and support services for
the HSS, the projected expenditure on communications and the non-filling of non
critical vacancies.
The
delay in the procurement of computer services is estimated to have resulted in
under-spending of R32 million. The installation of the virtual private network
(VPN), at a cost of about R4 million, was delayed due to non-occupation of
additional office space. Only R8.2 million was spent of the adjusted allocation
of R43 million for computers.
Table 5: Expenditure per programme
against the allocations reflected on National Treasury’s Adjusted Estimate of
National Expenditure
Programme |
Voted for 2011/12 |
Roll-over
& adjustments (R’000) |
Virements |
Total
Allocation (R’000) |
Allocations
as per the ENE 2011 (R’000) |
Expenditure
(R’000) |
(%) Spent |
Administration |
232 435 |
676 |
-11000 |
222 111 |
233 111 |
166 237 |
74.8% |
Housing Policy, Research & Monitoring |
39 215 |
227 |
- |
39 954 |
39 442 |
32 866 |
82.2% |
Housing planning & delivery Support |
156 163 |
31848 |
5000 |
193 011 |
195 011 |
186 733 |
96% |
Housing Development Finance |
21 995 147 |
206352 |
- |
22 201 499 |
22 197 499 |
22 105 262 |
99.5% |
Strategic Relations and Governance |
155 535 |
7943 |
6000 |
169 478 |
160 478 |
105 064 |
61% |
Total |
22 578
495 |
247046 |
- |
2 282
541 |
22 615 741 |
22 596
162 |
99.0% |
Source: Annual report of the Department of Human
Settlements
Table 6:
Spending by Programme as reflected in the Annual Report 2011/12
Programme |
Total allocation (R’000) |
Expenditure (R’000) |
Variance (R’000) |
Spent (%) |
Administration |
222 111 |
167 552 |
54 559 |
75.4% |
Housing Policy, Research & Monitoring |
39 442 |
32 954 |
6 488 |
83.6% |
Housing planning & delivery Support |
200 011 |
187 350 |
12 661 |
93.7% |
Housing Development Finance |
22 197 499 |
22 105 620 |
91 879 |
99.6% |
Strategic Relations and Governance |
166 478 |
105 444 |
61 034 |
63.3% |
Total |
22 825 541 |
22 598 920 |
226 621 |
99.0% |
Source: Annual report of the Department of Human
Settlements
Table 5 above on
the expenditure
per programme against the allocations reflected on National Treasury Adjusted
Estimate of National Expenditure reflects expenditure as reported by the
Department – (figures highlighted in red) do not correspond with the figures
from the National Treasury. The total expenditure has been cited as R2, 282
billion, even though the Housing Development Finance Programme’s budget already
exceeds R22 billion.
Comments of the Portfolio Committee
The
Portfolio Committee has observed from Table 5 above that there is a huge
discrepancy reported in the allocations of the Department of Human Settlements.
The Department reported that the total allocation for the 2011/12 budget
allocations per programme were as follows:
·
Programme 1: Administration. The Department
reflected a total of R222 111 million, whereas the National Treasury has
reflected a total of R233 111 was appropriated
·
Programme 2: Housing Policy, Research and
Monitoring. The Department reflected a total of R39 954, whereas the National
Treasury reflected a total of R39 442 million
·
Programme 3: Housing planning & delivery. The
Department reflected a total of R193 011, but the total appropriated on the
National Treasury is reflected as R195 011
·
Programme 4 Housing Development Finance. The
Department reflected a total of R22 201 499 million, whereas the National
Treasury reflected a total of R22 197 499 million
·
Programme 5 Strategic Relations & Governance.
The Department reflected a total of R169 478, whereas the National Treasury
reflected of R160 478 million
3. Progress Report on Outcome 8
3.1 Upgrading of Informal
Settlements
The
department has indicated that, in its programme of upgrading informal
settlements, it has achieved 91 558 serviced sites and this translates to 22.8%
of total target of 400 000 households.
Comments of
the Portfolio Committee
The
Committee has observed a slow pace of delivery in the upgrading of informal
settlements. The rate at which the Department is delivering, makes it
impossible for the target of 400 000 to be met by 2014.
3.2 Rental Accommodation
On
the provision of Rental Accommodation, the Department indicated that 11 334
units were provided. This translates to 14.2 % of the total of 80 000
units.
3.3 National Upgrade Support
Programme (NUSP)
It
has been indicated that 46 out of 49 (94%) targeted Municipalities were offered
technical assistance.
Six
Provincial NUSP structures have been established in EC, KZN, LP, MP, NC, and
WC)
3.4 Accreditation of Municipalities
It
was reported that 17 Municipalities were assessed by Capacity and Compliance
Assessment Panel and the Department was awaiting MEC’s approval to be awarded
with accreditation compliance certificates
It
was also indicated that the first tranche payment of the USDG was made to
relevant Metropolitan Municipalities.
3.5 Access to Basic Services
The
Department indicated that during the period under review, 158 337 households
were provided with access to sanitation facilities, bringing the total to
418 709.
It
was further indicated that based on the Cabinet Lekgotla’s decision,
operational plans were developed to target areas where backlogs were the
highest
3.6 Release of Land for Human
Settlement Development
The Department reported that the Housing Development Agency (HDA) has
identified and assessed over 17 000 hectors of state suitable land for release
in 2011/12. A total of 1 066 hectors of land has been released to municipalities
while 1 329 hectors were in advance stages of release.
3.7
Increased Urban Densities
The
Department has reported that it has developed a policy document to address the
dynamics of Built Environment, which will assist provinces and municipalities
with regard to increased densities. HDA has identified 309 properties of which
812, 83 hectors is owned by Transnet. These properties were identified for
development of medium to high density. The HDA has also developed mechanism to
ensure that well located land is released for development in accordance with
higher density.
3.8
Land-Use Management Framework
The Department has reported that the Department of Rural Development and
Land Reform has released “Spatial Planning and land Use Management Bill for
public consultation and that comments were received and analysed by the
Department of Rural Development and Land Reform for further engagements with
the key stakeholders.
3.9
Mortgage Default Insurance (MDI) Guarantee
The
Department has reported that it has not secured concurrence of the National
Treasury to affirm the safety of the institutional arrangements to launch the
MDI into the financial markets. All commercial banks have confirmed interest in
supporting MDI implementation project. Consolidation of the Human Settlements
Development Finance Institutions has been approved; therefore relevant
approvals were being obtained including National Treasury and Cabinet.
3.10
Sustainable Human Settlements and Basic Services Task Team
The sustainable human settlements and basic services task team is
convened jointly by COGTA and NDHS to report on:
(a) Rapidly Growing Towns
and Cities;
(b) Informal Settlement
Upgrade Programme in the 45 municipalities;
(c) Progress Report on the 23 Rural
Municipalities identified by the Cabinet Lekgotla of June 2011;
(d) Report by the
Presidential Infrastructure Commission on SIP 7
Table
8: Human Settlements Development Grant
HUMAN SETTLEMENTS DEVELOPMENT GRANT (HSDG) |
|
||||||
Provinces |
Total Available |
Transferred
Funds |
Spent
by Provinces |
Spent
vs. Total
Available |
Spent
as % of
Total Available |
Unspent
as % of Total Available |
|
|
R'000 |
R'000 |
R'000 |
R'000 |
|
|
|
|
2,177,676 |
2,177,676 |
1,897,076 |
280,600
|
87% |
13% |
|
|
913,907 |
913,907 |
903,431 |
10,476
|
99% |
1% |
|
|
3,804,611 |
3,804,611 |
3,786,015 |
18,596
|
100% |
0% |
|
|
2,769,871 |
2,769,871 |
2,769,872 |
-1 |
100% |
0% |
|
|
1,398,914
|
1,398,914 |
1,259,394 |
139,520
|
90% |
10% |
|
|
916,677 |
916,677 |
916,673 |
4 |
100% |
0% |
|
|
322,639 |
322,639 |
322,617 |
22 |
100% |
0% |
|
|
998,376 |
998,376 |
1,148,708 |
-150,332
|
115% |
-15% |
|
|
1,638,845 |
1,638,845 |
1,635,001 |
3,844
|
100% |
0% |
|
Total |
14,941,516
|
14,941,516
|
14,638,787 |
302,729 |
98% |
2% |
|
Source: Annual report of the Department of Human
Settlements
Table
9: HSDG non-financial performance
HSDG NON – FINANCIAL PERFORMANCE |
|
|||||||||
Province |
Annual
Delivery Targets |
Delivery
Performance as at 31 March 2012 |
Variance
Delivery sites |
Variance
Delivery Top Structure |
Total
Variance Delivery |
|||||
Sites(units) |
Top
Structure (units) |
Total
Delivery Targets |
Sites |
Top
Structure (units) |
Total
Delivery Performance |
|||||
|
15,660 |
15,419 |
31,079 |
5,990 |
14,498 |
20,488 |
(9,670) |
(921) |
(10,591) |
|
|
7,680 |
7,526 |
15,206 |
7,400 |
9,070 |
16,470 |
(280) |
1,544 |
1,264 |
|
|
15,606 |
34,294 |
49,900 |
15,803 |
22,521 |
38,324 |
197 |
(11,773) |
(11,576) |
|
|
8,860 |
25,587 |
34,447 |
5,426 |
22,119 |
27,545 |
(3,434) |
(3,468) |
(6,902) |
|
|
3,000 |
13,410 |
16,410 |
1,752 |
13,619 |
15,371 |
(1,248) |
209 |
(1,039) |
|
|
8,235 |
10,394 |
18,629 |
1,515 |
7,702 |
9,217 |
(6,720) |
(2,692) |
(9,412) |
|
|
1,530 |
3,480 |
5,010 |
1,456 |
3,683 |
5,139 |
(74) |
203 |
129 |
|
|
8,688 |
17,883 |
26,571 |
10,559 |
16,333 |
26,892 |
1,871 |
(1,550) |
321 |
|
|
13,085 |
12,640 |
25,725 |
8,686 |
11,065 |
19,751 |
(4,399) |
(1,575) |
(5,974) |
|
Total |
82,344 |
140,633 |
222,977 |
558,587 |
120,610 |
179,197 |
(23,757) |
(20,023) |
(43,780) |
|
Source: Annual report of the Department of Human
Settlements
Table
10: Urban Settlements Development Grant
URBAN SETTLEMENTS DEVELOPMENT
GRANT |
Municipalities |
Total
Available |
1
July 2011 - 31 March 2012 |
||||
Transferred
Funds |
Spent
by Municipality |
Spent vs. Total Available |
Spent
as % of Total Available |
Unspent
as % of Total Available |
||
|
R'000 |
R'000 |
R'000 |
R'000 |
|
|
|
423,446
|
423,446 |
79,699 |
343,747 |
19% |
81% |
Nelson Mandela |
502,626 |
502,626 |
262,195 |
240,431 |
52%
|
48%
|
Mangaung |
411,995 |
411,995 |
163,153 |
248,842 |
40% |
60% |
Ekurhuleni |
1,094,276 |
1,094,276 |
504,305 |
589,971 |
46% |
54% |
City of |
1,027,970 |
1,027,970 |
470,176 |
557,794 |
46% |
54% |
City of |
891,081
|
891,081 |
349,874 |
541,207 |
39% |
61% |
eThekwini |
1,091,574
|
1,091,574 |
558,323 |
533,251 |
51% |
49% |
City of |
824,030 |
824,030 |
287,972 |
536,058 |
35% |
65% |
Total |
6,266,998
|
6,266,998
|
2,675,697
|
3,591,301
|
43%
|
57%
|
Source: Annual report of the Department of Human
Settlements
Entities Reporting to the
Minister
1.
National Housing Finance Corporation (NHFC)
The institution is mandated to make housing finance
accessible and affordable to low- and middle-income households. It searches for
new ways to mobilise finance for housing from sources outside the state in
partnership with the broadest range of organisations. It also provides
wholesale finance and acts as a fund and risk manager. The entity has two expanded mandate which
include the Mortgage Default Insurance as well as the Finance Linked Individual
Subsidy Programme (FLISP). The purpose
of MDI is to ensure that households in the gap-market have improved access to
affordable mortgage finance through the Mortgage Default Insurance (MDI)
insurance.
The
insurance guarantee against default is intended to encourage the major banks to
offer housing finance in the R3 500 to 12 000 income bracket, because these
loans would be insured by the MDI, relieving the banks of the responsibility of
insurance.
The
Department has reported that it has not secured concurrence of the National
Treasury to affirm the safety of the institutional arrangements to launch the
MDI into the financial markets. All commercial banks have confirmed interest in
supporting MDI implementation project. Consolidation of the Human Settlements
Development Finance Institutions has been approved; therefore relevant
approvals were being obtained including National Treasury and Cabinet.
Audit
opinion
The entity received unqualified Audit report during
the 2011/12 financial year.
2.
Housing Development Agency (HDA)
The agency is mandated to facilitate the
acquisition of land in a way that supplements the capacities of government
across all spheres. It also provides project management expertise to human
settlement projects and facilitates the development of projects through
accelerated and innovative project packaging. Part of its role is to enhance
the capacity of municipalities and provinces to deliver integrated, sustainable
human settlements.
Land remains a priority in the Outcome 8 mandate of
delivering 6 250 hectors of land by 2014.
Progress
The HDA conducted 156 pre- acquisition feasibility
studies. HDA reported that it has acquired 2 500 hectors of land for Human
Settlements Development. In its Land identification and planning programme, the
HDA identified suitable properties located in the proximity to municipal
infrastructure.
In the 2011/12 financial year the HDA identified 35
219 hectares of state and state-owned enterprise (SOE) land to be released for
the establishment of human settlements. A total of 13 598 hectares were
formally submitted for release from custodian departments, the approval of
which is pending.
Comments
of the Portfolio Committee
·
Irregular expenditure
amounting to R425 579
·
Lack of clarity on the
feasibility studies that were conducted
·
Lack clarity on how much
was rectified in the area of Joe Slovo Park in Cape Town
·
Lack clarity on the
operating costs
·
A surplus of 17.7 million
that has not been clarified
3.
National Home Builders Registration Council (NHBRC)
Its mandate is to provide housing consumers with
warranty protection against defects in new homes, and to provide protection
against failure of builders to comply with their obligations in terms of the
Act. It provides an exclusive regulatory function in the home building
environment.
Comments
of the Portfolio Committee
The committee is concerned by the lack of capacity,
especially with regards to fact that there are few inspectors in all the
regions. The Department reported that there was an irregular expenditure of
R201 million incurred by the NHBRC.
Interaction
with the Auditor General
The NHBRC received unqualified audit opinion with
other findings. The Auditor General has identified the following issues on the
NHBRC.
Leadership
·
The accounting authority
did not exercise adequate oversight responsibility over financial and
performance reporting and compliance and related internal controls
·
The accounting authority
did not adequately review the financial statements and the report on
predetermined objectives prior to the submission for audits. There was material
non compliance by the entity with legislation
·
The IT governance framework
was not sufficient to support and enable the business, to deliver value and
improve performance. General and application controls are not adequate and
focussed to achieve reliable and accurate data outputs
Financial and performance management
·
The decision and
implementation of formal controls over the IT system were not adequate, as
limited to no reliance could be placed on the accuracy and validity of
financial information obtained from the system.
·
Management did not have
adequate control to ensure compliance with legislation. The procurement process
did not fully comply with the requirement of the supply chain legislation
management requirements
Governance
The
internal audit department was not functioning effectively in the period under
review.
4.
Social Housing Regulatory Authority (SHRA)
The SHRA was established in terms of the
Social Housing Act (Act 16 of 2008). The main objective of SHRA is to regulate
and support the social housing sector in order to accelerate the delivery of
sustainable and financially viable social housing projects. It is responsible
for the disbursement of institutional investment and capital grants to social
housing institutions.
The entity received unqualified audit report
with findings.
Institutional programme
SHRA reported that during the 2011/12
financial year the organization approved a total of 18 Institutional
Intervention Grants. The Grants that were awarded cover a number of different
grants including:
·
Project
feasibility Grant
·
Staff Gear-up
and Accreditation; and Specific Intervention Grants
Performance of SHRA
SHRA reported that it has accredited 18
Social Housing Institutions (17 conditional and 1 full, 8 declined).
The report indicated that the investment
target of 1 712 units was surpassed when 4 127 units were approved from a total
13 entities including private sector delivery agents on Social Housing
Investment Programme.
Financial performance of SHRA
SHRA reported that as at 31 March 2012, its
books showed a deficit of for the year of R68 618 362 with an accumulated
surplus of R59 649 410.
Policy initiatives
The entity reported that a position paper on
Property Management in the sector was developed around 13 key issues facing the
sector, a discussion forum was convened to provide expects input to the paper
which was handed over to the Department for consideration.
5.
Thubelisha and Servcon
The
process of winding down (liquidation) of Servcon and Thubelisha was initiated
in 2008, at which stage the Department indicated that the detailed closure plan
was to be completed within two months, and the entire process was scheduled to
be completed within six months. The closure of the two entities should be
fast-tracked.
Analysis
by the Committee on Utilization of Consultants using Appropriated Funds:
Department of Human Settlements
As
of the financial year 2011-2012, the Department of Human Settlements Annual
Report indicate that there was a total of 26 companies involved in various
projects entrusted to them by the Department. Information obtained from the
Annual Report thus indicate that the Department awarded different contracts to
different companies based on their field of expertise, resulting in R91 562
136, 16. The biggest contract, valued at R41 654 553, 48, went to the company
in charge of “[project management for the implementation of the Rural Household
Infrastructure Programme,” for the duration of 24 months. This simply is one of
the examples of how the Department uses consultants to complete its projects.
However,
in another study conducted by EPRI in October 2012, the findings demonstrate
that lucrative contracts with consultants do not necessarily mean effective
work or useful way of spending allocated funds. The study demonstrates that
despite the fact that such lucrative contracts are awarded to consultants with
the concept of efficiency and accountability in mind, “it remains unclear what
has been achieved, i.e. how many houses/settlements have been built…”
Consequently, the study reveals that there is a lack of accountability,
fairness, and sustainability in a way that funds are handed over to the
concerned consultants. There is no clear indication as to where the funds are spent and the conditions for expenditure.
Furthermore,
the committee has learned that from the study conducted by EPRI that excessive
utilization of consultants does not necessarily translate into cost effective
performance output and efficient utilization of resources. Despite all the lucrative contracts awarded
to consultants, there are no clear outputs or tangible results.
4. Report of the Auditor-General
(AG)
The
AG has reported that the Department of Human Settlements has received
unqualified audits with other findings.
4.1 Material under-spending of the Rural Household Infrastructure Grant
As disclosed in the
appropriation statement, the Department materially under-spent the budget on
Programme 4, Sub-programme: Rural Household Infrastructure Development, by R70
155 000 of a total allocation of R257 508 000. As a consequence, the Department
did not achieve some of its objectives in respect of providing sanitation
services to rural communities.
4.2 Predetermined Objectives
The material findings are
as follows:
4.2.1 Usefulness of information
4.2.2 Measurability
·
Performance indicators not
well defined as required by the FMPPI
The Framework for
Financial Managing Programme Performance Information (FMPPI) requires
indicators and measures to have clear, unambiguous data definitions so that
data can be collected consistently and is easy to understand and use. A total
of 22% of the indicators relevant to Programme 2: Housing Policy, Research and
Monitoring, Programme 3: Housing Planning and Delivery Support and Programme 4:
Housing Development Finance was not well defined in that clear, unambiguous
data definitions were not available to allow for data to be collected
consistently. This was due to the requirements of the FMPPI not being correctly
applied due to a misinterpretation of the requirements.
4.2.3 Performance targets not specific
The FMPPI
requires performance targets to be specific in clearly identifying the nature
and required level of performance. A total of 27% of the targets relevant to
Programme 2: Housing Policy, Research and Monitoring, Programme 3: Housing
Planning and Delivery Support and Programme 4: Housing Development Finance was
not specific in clearly identifying the nature and the required level of
performance. This was due to the requirements of the FMPPI not being correctly
applied due to a misinterpretation of the requirements.
4.2.4 Performance targets not measurable
FMPPI requires
performance targets to be measurable. The required performance could not be
measured for a total of 28% of the targets relevant to Programme 2: Housing
Policy, Research and Monitoring, Programme 3: Housing Planning and Delivery
Support and Programme 4: Housing Development Finance. This was due to the requirements
of the FMPPI not being correctly applied due to a misinterpretation of the
requirements.
4.3 Additional Matter to the above material findings:
Achievement of planned targets
Of the total
number of 172 planned targets, (Number
of targets) were not achieved during the year under review. This means that
23% of the total number of the planned targets was not achieved during the
2011/12 financial year.
4.3.1 Compliance with laws and regulations
The AG
performed procedures to obtain evidence that the entity has complied with
applicable laws and regulations on financial matters, financial management and
other related matters. The findings of the Auditor General on material
non-compliance with specific matters in key applicable laws and regulations, as
set out in the General Notice issued in terms of the PAA, are set out below.
4.3.1.1 Annual financial statements, performance report and annual
report
The financial
statements submitted for auditing were not prepared in accordance with the
prescribed financial reporting framework and were not supported by full and
proper records, as required by section 40(1) (b) of the PFMA. Material
misstatements of disclosure items identified by the auditors in the submitted
financial statements were subsequently corrected, resulting in the financial
statements receiving an unqualified audit opinion.
4.3.1.2 Procurement and contract management
The evaluation
criteria, system to be used in awarding preference points for procurement and
maximum points to be awarded for historically disadvantaged individuals were
not specified in bidding documents, as required
by section 7 of the Preferential Procurement Policy Framework Act of
South Africa, 2000 (Act 5 of 2000).
4.3.1.3 Expenditure management
The Accounting
Officer did not take effective steps to prevent irregular, as well as fruitless
and wasteful expenditure, as required by section 38(1)(c)(ii) of the PFMA and
Treasury Regulation 9.1.1. Contractual obligations and money owed by the
Department were not settled within 30 days or an agreed period, as required by
section 38(1) (f) of the PFMA and Treasury Regulation 8.2.3.
4.3.1.4 Human resource management and compensation
A human
resource plan was not in place, as required by Public Service Regulation
1/III/B.2 (d). Persons in charge at pay points did not always certify that the
employees receiving payment were entitled there to, as required by Treasury
Regulation 8.3.4.
Employees were
appointed without following a proper process to verify the claims made in their
applications, in contravention of Public Service Regulation 1/VII/D.8.
4.3.1.4 Asset management
Proper control
systems to safeguard and maintain assets had not been implemented, as required
by section 38(1) (d) of the PFMA and Treasury Regulation 10.1.1(a).
4.4 Internal Control
The AG
indicated that he has considered internal control relevant to his audit of the
financial statements and report of information on predetermined objectives and
compliance with laws and regulations. The matters reported below under the
fundamentals of internal control are limited to the significant deficiencies
that resulted in the findings on the report of information on predetermined
objectives and the findings on compliance with laws and regulations included in
this report.
4.4.1 Leadership
The Accounting
Officer did not exercise adequate oversight responsibility regarding financial
and performance reporting, compliance with laws and regulations, and related
internal controls.
4.4.2 Financial and performance management
Management did
not prepare regular, accurate and complete financial and performance reports
that were supported and evidenced by reliable information.
Management did
not review and monitor compliance with laws and regulations.
4.4.3 Other reports
4.4.3.1 Investigations
Investigations
were conducted as a consequence of alleged financial misconduct by a senior
management member regarding non-compliance with sections 66 and 70 of the PFMA.
The Public
Protector is currently conducting an investigation into alleged financial
misconduct by the Accounting Officer of the Department.
(Refer to the
Annual Report of the Department of Human Settlements (page 99 – 102)).
5. Committee interaction with the
Office of the AG
The AG said that even though the Department received unqualified report,
there a number of concerns with regard to departmental performance, which
include the following:
·
IT controls are
not always secure. This poses a risk of information being compromised. There is
a lack of IT security policy.
·
The supply
chain management is in a high risk area.
·
No proper user
account management controls, meaning that more than one person is using one
password.
·
The Department
argues that their IT is managed by the SITA, however, this has been refuted by the
Auditor-General, and the Department should manage its own IT operations.
·
The AG asserts
that the turn-around strategy has been finalised but the vacancy rate is still
very high.
·
Lack of risk
management policy from programme one to five.
·
The Human
Resource plan has not been approved.
·
The entities do
not have monthly financial statements a management tool.
·
Sited root
causes are as follows: lack of adequate review of Accounting Financial
Standards (AFS) including Audit Committees; lack of consequences for
transgressors; action plans are inadequate or not implement correctly to
address PY matters reported; lack of understanding of FMPPI Framework; SMART
criteria; poor understanding of why and which key controls are essential
(monthly reconciliation are not conducted such as assets reconciliations).
6. Public Service Commission
Report
The
Committee received briefings from the Public Service Commission (PSC) on the
annual performance of the Department of Human Settlements (DHS).
The
PSC has a Constitutional mandate to provide oversight over the national and
provincial spheres of government and to promote performance and other public
service values (Section 295 of the Constitution and Public Service Act). It has
developed a monitoring and evaluation framework with indicators in relation to
the assessment of the performance of government departments, public entities
and constitutional institutions. This framework has been used to assess the (i)
governance and (ii) programme performance of the Department of Human
Settlements. The PSC has considered amongst other things reports of the
Auditor-General (AG) and the Department of Public Service and Administration
(DPSA) in its assessment of the Department of Human Settlements.
The
PSC informed the Committee that the PSC Act was under review and amendments
were published for public comments. The
amendments includes amongst others, the powers to enforce compliance with
comprehensible and fundamental recommendations made by PSC.
The
PSC reported that the website of the Department had the required information
and that showed an improvement. However,
PSC also indicated that reports on the website are formatted in such a way that
it is not easy to download. It was
pointed out, that, it was only after an enquiry that the Department through
Director-General provided the required documents.
The
PSC stated that it does not have information on the entities reporting to the
Minister of Human Settlements. However,
PSC indicated that on the Department of Human Settlements the information
covered issues of financial management, expenditure and performance,
development orientation, accountability, professional ethics, transparency,
good human resource practices and employment equity.
Financial
management
PSC
stated that the Department has a matter of emphasis in relation to the
restatement of corresponding figures e.g. Rural Household Infrastructure Grant
(RHIG) revealed material under-spending, and there were unaudited supplementary
schedules with regard to this Grant.
The
PSC indicated that Department of Human Settlements has spent 99% of its
budget. Nonetheless the Department
achieved 77% of its target during the period under review. Although the
Department almost spent its entire budget, the achievement of pre-determined
out-puts were fairly low, due to under-spending as a result, of amongst others
delays in implementing projects, securing office space and a moratorium on
filling non-critical positions pending the completion of the turnaround
process. It has been stated that a
greater concern was the under expenditure of R187 million on the Rural
Household Infrastructure Grant. It was further
reported that, the Department’s contractual obligations and invoices were not
paid within the stipulated period of 30 days.
Professional
ethics
Although
the DHS has the Special Investigations Directorate and a Whistle-Blowing policy
in place to prevent and detect corrupt activities and ensure that corrupt
practises in the sector are reduced. It
was found that:
·
Feedback and closure
rate in respect of National Anti-Corruption Hotline cases were unacceptably low
e.g. 113 case were referred to the SIU only 7% feedback received and only 2%
cases closed which leaves a balance of 111 outstanding cases as at August 2012.
·
Financial Disclosure
Framework demonstrated an improvement as submission were made on due date.
·
Managing potential
conflicts that senior managers may have between their private business
interests and their official responsibilities.
PSC reported in 2010/11 financial year 32% that senior managers in the
DHS may have potential conflicts between their private interest and official
responsibilities. It was reported that
21 officials may have potential conflicts, six officials have many companies
and two officials were sharing companies.
·
Report on finalised
misconduct cases – PSC reported that in 2010/11 financial year the DHS failed
to submit an input to them. In 2011/12
financial year the Department reported two cases of financial mismanagement, one
involving an amount of R100 million.
However, there was no loss to the State in that case.
Transparency
The
DHS website was not user friendly and most documents available on the website
are not easily accessible for downloading them. There was no link on the DHS
website for the DHS Annual Report for 2010/11, however, as at 1 October 2012,
contrary to what the Department should have done.
Human
Resource Practises
The
PSC stated that the DHS did not have a human resource plan as required by the
Public Service Regulations by the end of the financial year, 31 March
2012. The overall vacancy rate in the
Department was 21.1%, but this had increased to 24.4% as at June 2012. The
vacancy rate in respect of professionals and Senior Management members was very
high. The PSC noted that on average, it took the DHS over two years to fill
posts.
Development
orientation
As
per the SA General Household Survey, the highest percentage of households
living without toilet facilities or having to use bucket toilets was found in
the Eastern Cape (17, 0%); Limpopo (7, 9%); Northern Cape (7.6%) and Mpumalanga
(6.7%). It was further noted that 15, 5%
of households felt that the walls of their dwellings we weak or very week,
15.1% felt that the roof was weak.
Employment
equity
The
PSC reported that the DHS had 93.5% of black employees, 36.4% were women and 0,
3 % were people with disabilities.
7.
Financial and Fiscal Commission (FFC) presentation on the DHS performance
The
FFC stated that DHS has spent 99% of its funds and yet achieved fewer targets.
Part of the reason for this low level of the achievements of targets and high
spending resulted from the DHS’ transfer funds to implementing agencies such as
entities and provinces and municipalities. The FFC said however, that the funds
were not spent on the core functions of the DHS itself, and that was one reason
for the apparent discrepancy.
The
FFC indicated that the set delivery targets
should be aligned to the available budget. The FFC further alluded that
the actual number of housing units delivered in the 2011-2012 was not reflected
in the Annual Report of the Department for the period under review. The FFC
said that by December 2011, the Department reported that number of houses
completed were 88 441 (for three quarters) – therefore it was unlikely that the
target of 220 000 would be reached. Furthermore, the actual delivery has never
reached 220 000 since 2007/8. In 2007/8 delivery of houses totalled
146 465, in 2008/9 delivery of houses totalled 160 403, in 2009/10
delivery of houses totalled 161 854, and in 2010/11 delivery of houses
totalled 121 879.
The
Department target for 2011/12 financial year was to support the development of
20 000 units. However, less than half of this target was achieved as 5 813
units were delivered. The reason provided by the Department for failure to
achieve this target were as follows: limited funding, delays in the approval
plans and released of the land
The target for upgrading informal settlements and to provide proper
services and land tenure is 400 000 households by 2014, however, there is no
yearly target for Department in relation to the upgrading of informal Settlements
and to improve proper services and land tenure. Furthermore, the actual
performance in relation to the upgrading of informal settlements and to provide
services and land tenure was not
reflected in the Department Annual Report for the
period 2011/2012.
Acquiring land for
affordable housing
The FFC indicated that the target for acquiring hectares of well-located
state-owned land for low-income and affordable housing was set at 6 250, however, a total
of 13 598 hectares were formally submitted for release, and yet the Department
did report on the actual hectares of land that were released during the period
under review.
Gap market
The Department did not report on the actual performance in relation to
the target of supplying affordable housing finance to 600 000 households in the
gap market.
Social Housing Foundation (SHF)
An
amount of R3m was provided for closure of SHF and this amount was not spent.
Furthermore, it was reported in the annual report of the Department that this
money was not required. This raises
questions on the planning and costing of activities (financial and fiscal
implications not properly done) by the DHS
8. Concerns of the Portfolio
Committee on Human Settlements
·
Programme plans and
target of the Department do not correspond with its budget and outputs
·
Employment equity of the
Department with regard to number of women in senior management position and
also of people with disabilities is very low below 50% per cent and this is not
in line with the government prescript on employment equity.
·
Many people in the
Department are appointment on an acting capacity in senior management positions.
·
Output performance of
the Department fell far below the performance expenditure.
·
The Public Service
Commission did not get information on the entities reporting to the DHS
·
The report shows that
the entire budget was spent yet the achievement of the predetermined targets is
very low, this suggests fiscal dumping on the side of the Department.
·
Employees are suspended
for a period exceeding three months with a full remuneration.
·
Lack of the existence
and the implementation of the human resource plan by the Department.
·
There were many areas of
non-expenditure across various programmes of the Department, even though the Department
has recorded 99% spending of its budget.
· Lack of
alignment between target achieved and budget spend.
· Unrealistic
targets set by the Department.
· Lack of capacity
and lack plans to build capacity by the Department, provinces, municipalities
and departmental entities.
· Under-expenditure
of RHIP.
· Immeasurable
targets.
· Lack of
compliance to Supply Chain Management (SCM) procedures and IT security.
Issues raised by
Committee: improvement of RHIP performance, alignment of performance targets
and budget allocation, better planning, capacitating of the Department and
provinces, municipalities, accountability of entities
Impact Assessment of Policy Implementation
In
the period under review, the Department has created over 76 000 job
opportunities, of these, about 50 000 were direct, 5 000 indirect and
22 000 induced.
With
the drive from the National Home Builders Regulation Council, the Department piloted the building of houses using alternative
technologies, including the use of recycled materials.
SAWIC
is in charge of relatively large projects. China Square is one of their
outstanding projects and they have completed 500 houses. They are also involved
in the Soul City project, rectifying 1 000 units that have been badly
built.
Regarding
public-private partnerships, the Department has a successful partnership
initiative with a number of stakeholders, for example, houses were built in
Mazista and Skierlik in the North West Province on land donated by a farmer.
The
Vulindlela-enhanced People’s Housing Project (PHP) project is initiated in
Msunduzi Municipality in the rural area of Pietermaritzburg. Their target is to
build 25 000 housing units in five years. They have completed 6 000
as at 09 May 2012. The project has created many job opportunities.
Progress
on Outcome 8 Target Outputs
Upgrading
of Informal Settlements
–
91 358 serviced sites
–
22,8% of total target of 400 000
households
Rental
Accommodation
–
11 334 units
–
14,2% of total of 80 000 units
Access
to Basic Services
–
Sanitation: 2011/12 up to 30 September 2011 provided 158
337 households with access to sanitation facilities, bringing total since April
2010 to 418 709 households;
–
The delivery of 116,056 completed
houses and 56697 serviced cites from April 2011 to 31 March 2012 has created
81,868 employment opportunities.
–
The information above is based on
employment definition of one person employed for a period of one year.
–
The employment opportunities created
during the financial year 2011/12 is estimated to be 54031 direct jobs
–
A further 27,838 indirect jobs
created from the suppliers of building material as well as expenditure from
income of employees.
Rural Household Infrastructure Programme
Job
creation
–
A total number of 4 726 jobs were
created through RHIP
Health and Hygiene Education
–
24 470 households reached with
Health and Hygiene education through RHIP
Overall comments by Committee
The
Committee believes that the mission of the Department leaves no doubt that it
functions under the guiding principles whose objective is “to facilitate the
creation of sustainable human settlements and improved quality of household
life.” Such principles are deeply imbedded in the values that the Department is
morally and legally obliged to demonstrate a reasonable degree of
accountability, fairness, choice, quality, affordability, among others things
to honour its role. On that regard, the utilization of consultants on behalf of
the Department must respect the core values of the Department in order to
effectively serve the needs of those people the various projects ought to
benefit. Hence, this analysis looks at the relationship between the Department
and consultants, and the quality of work consultants do by using appropriated
government funds.
Despite
the fact that such lucrative contracts are awarded to consultants with the
concept of efficiency and accountability in mind, “it remains unclear what has
been achieved e.g. some contracts have no clear role.
Consequently,
the study reveals that there is a lack of accountability, fairness, and
sustainability in a way that funds are handed over to the concerned consultants
without any clear indication or a sense of direction as to where such funds are
to be spent and on what conditions.
The
incapacity of all parts involved to appropriately and efficiently spend the
funds in a responsible way that benefit the people in desperate need of housing
facilities, suggests that there might be a conflict of interest.
The
most alarming issue in the long-term and survival of the Department is the
question of sustainability. In these hard economic times and fiscal challenging
years, the Department ought to find ways to limit the number of consultants it
awards contracts. The implication of that recommendation has to do with the
fact that many of the tasks some of these companies do are indeed overlapping.
Hence, by merging some of them, the Department will have more control of where
the money goes and how it is being spent. Such will help in many ways. First,
it will eliminate the conundrum of having to deal with so many and ineffective
consultants. Thus, consultant will be held accountable should they fail to
respect the conditionality of the contract. Second, such restructuring will
permit the Department to focus on the beneficiaries by keeping track of the
progress of the projects being done and where funds are being spent. Third,
conflict of interest will be minimized as contracts to companies will be given
to companies on the basis of meritocracy vis-à-vis their experience within the
respective field.
Concerns
The Committee was
concerned about the issue of sustainability in the long term and survival of
the Department.
Overall comments and observation by
the Committee
Policy and
legislative issues
· Since the reconfiguration of the Department
of Human Settlements in 2009, the Department is still operating under the
Housing Act, the White Paper of Human Settlements and also the Human
Settlements Bill has not been finalised and implemented by the Department. This
delay in the processing, finalisation and implementation of White Paper on
Human Settlements and also the Human Settlements Act has negative impact on the
service delivery of the Department of Human Settlements to achieve government
objectives as outlined in the Medium Term Strategic Framework for 2009-2014.
·
The development and review
of two key human settlement planning instruments, namely the Guidelines for
Human Settlements Planning and Design, and Housing Chapters of Municipal IDPs,
were held in abeyance until the turnaround process within the Department has
run its course.
· Slow pace of
integration of Breaking New Ground (BNG).
· The committee
has observed that there is high number of senior positions where managers are
acting in more than one position, e.g. Chief Director Monitoring is also acting
as Chief Director National Sanitation. Chief Director Implementation Support is
also acting as Deputy Director General Service Delivery. Acting Chief Director
IT and Systems is also acting as Chief Director Management Information
Services. Acting Deputy Director General Chief Finance Office is also acting as
Chief Director Financial Services. Chief Director Financial Services is also
acting as Deputy Director General Chief Financial Officer. Meanwhile the
position of Chief Director Rental Housing and People Housing Process (PHP) is
vacant.
· Representatively
of Women in Senior Management is estimated at less than 30% and that of people
with disabilities is far less
· The Department
Human Settlements has not yet developed a policy on Sanitation programme. This
delay in the implementation of Sanitation policy has negative impact on the
effectiveness and efficiency provision of Sanitation more especially in the
rural areas and the informal settlements.
·
A Policy directive by the President to transfers
Sanitation function from the Department Water Affairs and to Human Settlements
has not yet been fully implemented. This is a great concern to the Committee as
this makes it difficult for the Committee to exercises its oversight mandate in
ensuring that the dignity of the citizen is maintained and restored as well
ensuring that the MDG targets are met.
According to the Report of the
Auditor-General, which is contained in the 2011/12 Annual Report of the
Department of Human Settlements, The Department did not implement the required
government prescripts, for example:
Comply with Section 5 of
the FFC Act with regard to the accreditation of municipalities
More
needs to be done regarding educating people in communities on how to use the
toilets they are being given. Do we have
a programme that will teach people how to use their toilets – what to do and
what not to do, especially with flushing toilets.
General Expenditure of the Department needs demonstrates
whether the expenditure meets the strategy plans and the policy directive of
the department.
· Alignment of the expenditure and strategy plans of
the Department and policy directives and policy impact
The committee has
observed that the Department has not adequately used its voted allocations,
e.g. RHIP, disaster relief grant, USDG as well filling of vacancies. Generally,
the Department reported under-expenditure across all programmes.
Education
·
Capacity Development,
through its Training and Skills Development unit, implemented programmes aimed
at empowering beneficiaries and communities to be active citizens and members
of their communities in the creation of sustainable human settlements. The role
of sector stakeholders was also given prominence through forming partnerships
with institutions of learning to implement training programmes specific to
human settlements. This training contributes to the improvement of
understanding of the human settlements sector and the property market. Local
government councillors and political representatives were empowered through
councillor induction workshops on human settlements. The knowledge and
information gleaned from these workshops will assist them in implementing human
settlements programmes.
The Committee has
observed that the Department do have internships and bursary programmes, but it
is not clear as who has benefited in this programmes.
There was no educational
programme pertaining to the sanitation awareness e.g. awareness of World Toilet
Day and Hand Wash Campaign, the MDI and FLISP programme.
People need to be
educated around the Housing Code, e.g. when and how will they be allowed to
sell their houses, and etc. This a major challenges in areas where people find
themselves selling their houses prematurely.
The Department should
roll-out programmes to assist people with their title deeds after signing of
happy letters.
Health
·
In terms of health priority more needs to be done
in the education of communities regarding simple hygiene – washing hands when
you’ve been to the toilet. A clean
community will be a healthy community.
·
Litter is a problem in this country – in most of
the areas where the Committee visited as part of its oversight functions
observed that there was littering by the communities, and this was
unacceptable. Communities should be educated on part of taking ownership of the
new houses and should not be using the opportunity to educate the community
regarding on how to manage litter.
·
The sanitation programme and the expenditure and
its strategic plans are not aligned.
·
Lack of monitoring in hygiene and promotion policies.
·
The cost effectiveness of the system used need to
be researched.
Employment
·
When developments are identified, people need to be
trained in skills required for the development so that the community benefits
in a more sustainable way in creating jobs.
Perhaps some training could be given to people on how to do simple
maintenance on their houses; how to grow a small garden. Cosmo City was a good example of the
gardening classes run on a Saturday morning for members of the community.
·
Promotion of Housing Cooperatives in communities
could provide a major intervention in job creation. If fully supported,
cooperatives can potentially encourage communities to be involved in the
construction of their own houses.
·
People’s Housing Process is another form of
intervention that could be explored in helping to alleviate poverty and
unemployment. When communities are provided with security of tenure, such
communities do not become dysfunctional; in fact productivity is seen to be
prevailing when people have secure form of shelter.
·
Sanitation could also be another form of employment
creation, particularly the RHIP programme. Communities are trained in the
manufacturing and assembling of slaps used to erect toilet units. This is
sustainable way of providing training because even when the project comes to
its completion, people would be left with everlasting skills that they can
continuously use to make a living. In areas where Ventilated Improved Pits
(VIPs) are used, people could use the sludge coming out of the pit, dry it out
and manufacture manure that would in return be used in industries and gardens
grow vegetables. Furthermore, people could be provided with skills to
continuously maintain the VIP units.
Fighting crime
·
Human settlements must take a centre stage in the
fighting of crime and creating safer communities. Densely populated informal
settlements are prone to criminal activities because of the nature in which the
settlements are developing. People are not able to belong to structures such as
community policing forums and etc. These types of settlements also promote
crime because it is difficult to police in the area mainly because houses are
not enumerated. The Department should take an initiative to profile all the
informal settlements and create an occupancy database. This kind of an
initiative could help a great deal in fighting crime. Much more still needs to
be done to fight crime in these communities.
Overall observations of the
Portfolio Committee on Human Settlements
·
In programme 1, the Committee observed that the
Department has reported that they have a total of R18, 9 million on saving but
only R11, 3 million was utilised in 2011/12 financial year. The Department should explain to the Committee
what happened to the remaining amount of R7.6 million on the savings;
·
The Committee observed that there is still lot of
vacancies whereas the Department promised the Committee in previous financial
years that they will fill the vacant positions. There are huge negative
implications for the service services delivery as a result of failure by the
Department to fill its vacant positions as promised in the previous financial
year?
·
Since 2009 the Department has failed to make
provisions for office space whereas the Department keep on under spending its
budget in its regards. The Department
should explain to the committee on what measures they have put in place to make
provisions for office space;
·
In programme 2, the Committee observed that there
were additional allocations (R227 000). The Department should explain to
the Committee on what is the rationale behind this allocation since the
Department has spent only 82% of its allocated budget;
·
In programme 3, the Committee observed that there
is a total amount of R713 000. The Department should explain to the
Committee on where this money did came from and why it is included on the
tabled.
·
However, in another study conducted by Economic Policy
Research Institute (EPRI) in October 2012, the findings demonstrate that
lucrative contracts with consultants do not necessarily mean effective work or
useful way of spending allocated funds. The study demonstrates that despite the
fact that such lucrative contracts are awarded to consultants with the concept
of efficiency and accountability in mind, “it remains unclear what has been
achieved. The fact that many of the tasks some of these companies do are indeed
overlapping and further considering the hard economic times and fiscal cliff,
the Committee recommends that the Department should find ways to limit the
number of consultants it awards contracts.
9. Recommendations of the Portfolio
Committee on Human Settlements
9.1 To the Minister of Finance
Having
observed that there is huge discrepancy in figures received from the Department
of Human Settlements and the National Treasury information, the Minister of
Finance should:
·
Investigate the discrepancies between the funds
that have been allocated to the Department of Human Settlements and the
Department of Human Settlements’ own records of funds received from the
National Treasury; refer to Table 5 and Table 6 of this report.
The Department reported
that it could not produce some of the legislations and also could not achieve some
of its targets due to budget constraints. Therefore, the Committee recommends that
the Minister of Finance should:
·
Consider a systematic enquiry in relation to this
challenge and address it appropriately, where possible (for example, amongst
others refer to the page 41 table 11 of Annual report of the Department of
Human Settlements performance indicator 1, page 42 White Paper on Human
Settlements, page 52, performance indicator 1, second column under reasons for
variance, page 56 performance indicator 2).
As some of the
Metros utilise the Urban Settlements Development Grant (USDG) to other
programmes such as sport fields, building cemeteries, community halls etc, of
which the latter is already budgeted for by other government departments and
institutions.
·
Consider reviewing and strengthening the guidelines
with regard to the USDG in the next Division of Revenue Framework, in an
endeavour to achieve a common understanding of the intent of the grant. This will further assist in achieving the
critical aspect of addressing bulk infrastructure hindering the development of
qualitative and sustainable human settlements.
In 2004, Cabinet
took a decision that post-1994 to 2002 constructed units with serious
structural defects should be rectified, in an endeavour to restore, maintain
dignity of the citizen and support the poor. Therefore, it is recommended that
the Minister should:
·
Consider ring-fencing the funding allocation for
rectification programme as some of the provinces are not implementing the
programme due to various reasons such as lack of funding, commitment and good
will.
·
Consider that in future the Department’s funding
model address the issues of different typologies, dolomites and hard rocky
areas as these usually hamper and delays housing delivery.
9.2 To the Minister of Performance Monitoring
and Evaluation
The
Minister should:
·
Accelerate the facilitation of the full transfer of
sanitation function to the Department of Human Settlements including its
legislation and regulations in line with President Proclamation on the transfer
of sanitation function.
9.3 To the
Minister of Human Settlements
The Minister of Human Settlements should:
·
Implement the agreed resolution with the Parliament
to appoint the Auditor-General of South Africa to conduct an Integrated Special
Audit and the system of underperformance of the RHIP programme. Report progress before the end of November
2012.
·
Ensure that the Department comply
with section 7 of the Preferential Procurements Policy Framework Act (PPPFA)
of, 2000 (Act 5 of 2000) and within 30 days after the adoption of this Report
by the National Assembly submit to National Assembly a progress report with
regard to implementation of the systems and plans, which should assist the Department
to comply with the said Act (i.e. that
the evaluation criteria, systems used in awarding preference points for
procurement and maximum point for historically disadvantaged individuals are
specified in the bidding documents as required by PPPF.
·
Ensure that the Accounting Officer
take effective steps to prevent irregular, as well as fruitless and wasteful
expenditure, as required by section 38(1) (c) (i) of the PFMA and Treasury
Regulations 9.1.1 and that contractual obligations and money owed by the
Department are settled within 30 days or at an agreed period as required by
section 38(1) (f) of the PFMA and Treasury Regulation 8.2.3. Furthermore, the
Minister should within 30 days after the adoption of this Report by the
National Assembly submit to Parliament a progress report on the implementation
of the systems and plans, which should assist the Accounting Officer of the
Department of Human Settlements to effectively prevent irregular, as well as
fruitless and wasteful expenditure as required by section 38(1) (c) (ii) of the
PFMA and Treasury Regulations 9.1.1.
·
Ensure that the
Department comply with the National Treasury prescripts regarding the Framework
for Managing Programme Performance Information (FMPPI) and within 30 days after
the adoption of this Report by the National Assembly submit to the National
Assembly a progress report on the implementation of the systems and plans,
which should assist management of the Department of Human Settlements to ensure
that (i) performance indicators of the departmental programmes are well
defined, (ii) performance targets of the departmental programmes are specific
and also that (iii) performance targets of the departmental programmes are
measurable.
·
Ensure that the
Department comply with section 40(1) (b) of the PFMA and within 30 days after
the adoption of this Report by the National Assembly submit to Parliament a
progress report on the implementation of the systems and plans, which
should assist the Department to ensure that the Department’s financial
statements are prepared in accordance with the prescribed financial reporting
framework and are also supported by full and proper records as required by
section 40(1)(b) of the PFMA.
·
Submit a progress report
on the implementation of the systems and plans, which should assist the
Department to ensure that financial statements disclosure items of the
Department are in line with required prescripts and are also correct before
submitting them to auditors.
·
Submit a progress report
with regard to the implementation of the Human Resource Plan in the Department
of Human Settlements as required by the Public Services Regulations
1/III/B.2(d).
·
Submit a progress report
with regard to the implementation of the systems and plans, which should assist
the Department of Human Settlements to ensure that persons in charge at pay
points always certify that the employees receiving payment are entitled to do as
required by the Treasury Regulations 8.3.4.
·
Ensure that the Department review its Housing Code
to extend the Southern Cape Coastal Condensation Allowance (SCCCA) funding to
all coastal provinces and to maintain consistency in the application of norms
and standards.
·
Submit a progress report
with regard to the implementation of the systems and plans, which should assist
the Department of Human Settlements to ensure that proper processes are in
place to verify the claims made in the employment applications as required by
the Public Service Act of 1999 and Public Service Regulations of 2001,1/VII/D.8.
·
Submit to Parliament a
progress report on the implementation of the systems and plans, which should
assist the Department to ensure that “proper control systems to safeguard and
maintained assets” are in place as required by section 38 (1) (d) of the PFMA
and Treasury Regulation 10.1.1. (a).
·
Submit a progress report
on the implementation of the systems and plans, which should assist the
Accounting Officer of the Department of Human Settlements to exercise adequate
oversight responsibility regarding financial and performance reporting,
compliance with laws, regulation and related internal control and also submit
to National Assembly a progress report on the disciplinary action against
employees who were responsible for incurring irregular expenditure as required
by section 51(e)(iii) of the PFMA.
·
Present a draft National Sanitation policy and
Master Plan on sanitation. This should
be submitted to the Committee within 30 days after the adoption of the report
by the National Assembly.
·
Fast-track the regulation, norms and standards in
the sanitation programme.
·
Submit a progress report
on the implementation of the systems and plans, which should assist management
of the Department of Human Settlements to prepare regular, accurate and
complete financial and performance reports that are supported and have evidence
reliable information.
·
Fast-track the process of
the resubmission for the Rental Housing Bill to Parliament.
·
Submit a progress report
on the implementation of the systems and plans, which should assist senior
management to comply with sections 66 and 70 of the PFMA.
·
Ensure that more service providers are appointed to
roll-out the rural sanitation programme in order to speed up the process and
within 30 days after the adoption of this report by the National Assembly
submit to it a progress report on the implementation of this recommendation.
·
Ensure that new service providers are appointed and
that the contract for non-performing service providers is terminated and within
30 days after the adoption of this Report by the National Assembly submit to
Parliament a progress report on the implementation of this recommendation.
·
Ensure that the Department rollout an awareness
programme to inform people in the GAP market about the FLISP Programme in their
respective provinces and within 30 days after the adoption of this Report by
the National Assembly submit to Parliament a progress report on the
implementation of this recommendation. FLISP was pronounced by the President in
his State- of- the-Nation Address
·
Ensure that the Department develop a policy
guideline that would assist in speeding up the processes of Environment Impact
Assessments (EIAs) and within 30 days after the adoption of this report by the
National Assembly submit to it a progress report on the implementation of this recommendation.
·
Ensure that the Department develop a policy
framework that would regulate the process of issuing title deeds and within 30
days after the adoption of this report by the National Assembly submit to it a
progress report on the implementation of this recommendation.
·
Ensure that the Department disaggregate, per
province, targets for ensuring proper services and security of tenure with
regard to the achievement of the target of 400 000 households by 2014. This
would assist the Committee in enhancing its oversight responsibility in respect
of meeting targets of Outcome 8, as well as progress towards achieving the
MDGs. The Minister should within 30 days after the adoption of this report by
the National Assembly submit to it a progress report on the implementation of
this recommendation.
·
Ensure that the Department complies with the
Financial and Fiscal Commission legislation in relation to the accreditation of
municipalities and within 30 days after the adoption of this Report by the
National Assembly submit to Parliament a progress report on the implementation
of this recommendation.
·
Ensure that the Department provides the latest
statistics on the housing backlog. This is because the last national backlog
figure was sitting at
2, 1 million. The Committee needs to be briefed as to whether the number is
decreasing or increasing and the possible contributing factors thereto, e.g.
the migration to cities or the growing number of the population.
·
Ensure that the Department accelerate the filling
of vacant posts as it impacts on delivery. In addition gender equity and people
with disability to be addressed, especially at the senior management level.
·
Ensure that legislation is brought before
Parliament, including the following: an integrated Human Settlements Bill,
White Paper on Housing, White Paper on Sanitation, etc
·
Ensure that the Department presents its leave
policy to the Committee. This is because the Committee observed that there is a
high level of sick leave at management level.
·
Investigate the discrepancies between the funds
that have been allocated to the Department of Human Settlements and the
Department of Human Settlements’ own records of funds received from the
National Treasury. Refer to Table 5 and Table 6 of this report.
·
Ensure that the Department presents to the
Committee the Whistle Blowing Policy and Human Resource Plan.
·
Ensure that the
Department table quarterly progress reports in relation to the issues raised by
the Auditor-General.
·
Ensure that the Department
find alternative office accommodation as a matter of urgency as this has been recurring
over the past few years as it is detrimental to the output and service delivery
of the Department e.g. the filling of vacancies has an impact on the
installation of the virtual private network (programme 5).
·
Ensure that the Department
present to the Committee on which vacancies constitute non-critical post and
which ones are deemed critical
·
Ensure that the Department
brief the Committee as to what could be the recourse in the event that the
service providers including the property owners do not meet their contractual
obligations.
·
Ensure that the Department
explain to the Committee the shortfall of R7.6 million from the SIU
allocation. There were 113 cases that
were referred to the SIU, only 2% was resolved and the 111 were still
outstanding.
·
Present clear challenges of
not completing all cases referred to the SIU and on plan to deal with
outstanding cases and plans to fast-track them.
·
Ensure that the Department
together with its internal audit committee brief the Committee on challenges
facing the functioning of the audit committee.
·
Ensure that the Department
brief the Committee on system of internal control, risk management, strategy
and plans.
·
Ensure that the Department
and the State Information Technology Agency (SITA) brief the Committee on the
Service Level Agreement with the Department.
·
Explain to the Committee the
reason why more money was spent on the monitoring of research done by the
Department whereas less research was done.
·
Ensure that the Department
brief the Committee on the reason for not spending the allocated funds and also
the plans to address the under expenditure.
·
Ensure that the Department
brief the Committee on the progress report and timeframes with regard to the
plans developed and implemented to address challenges of poor workmanship, slow
administration of beneficiaries, poor planning and location, lack of
beneficiary education and alignment among various government departments.
·
Ensure that the Department
present to the Committee progress on the profiling of informal settlements.
·
Ensure that the Department brief the Committee on
the amount of R713 000 that was meant for salary increases but not reflected in
the Department’s annual report, yet it reflected on the Adjusted Estimates of National
Expenditure.
·
Brief the Committee on the breakdown of the R5
million that was set aside for sanitation also on the progress report of the
Ministerial Task Team.
·
Present reviewed plans regarding the implementation
of the sanitation programme on a quarterly basis. This should include plans and the monitoring
and evaluation on the programme.
·
Appoint the office of the AG to conduct a Special
Integrated Audit on RHIG and provide quarterly progress reports.
·
Present a recovery plan to
the Committee which will assist the Department to accelerate the delivery of the
Outcome 8 in all areas raised above.
·
Ensure that the
Department present the progress report with regard to achievement of 80 000
target of rental units by 2014.
·
Ensure that the Department brief the Committee on the excessive
utilisation of consultants and outcome of such exercise.
·
Ensure that the
Department receives monthly reports from
its entities with regard to financial performance, policy implementation,
operational performance and administrative performance and this reports in its
quarterly report to Parliament for the Portfolio Committee on Human
Settlements
·
Ensure that the Department
and the National Housing Finance Corporation brief the Committee on the
progress report on outcome 8 with regard to Mortgage Default Insurance and Finance Linked Individual Subsidy Programme
·
Ensure that the
Committee’s concern about the high interest rate charged by the NHFC and the
Rural Home Loan Fund to consumers is addressed and provide progress report to
the National Assembly.
·
Ensure that the Department
provides a progress report and outcomes of the investigations conducted on the NHBRC’s
alleged fraud and corruption activities.
·
Ensure that the Department
fast-track the finalisation of the amendments to the Housing Consumer
Protection Measures Act, 1998 (Act No. 19 of 1998), and provide feedback to the
Committee in this regard.
·
Ensure that the Department,
together with the Board of the NHBRC - appear before the Committee to provide
clarity on remedial actions that the NHBRC should take following of the report
the Auditor-General.
10. CONLUSION
Following the President’s
Proclamation in 2009 to change the Department of Housing to Human Settlements,
a need arose for housing not only about
providing a roof on top of people’s heads, but also to provide sustainable and integrated human settlements
where people could work, pray, play, and have access to other amenities that
they need for their day-to-day living. South Africa was party and signatory to
the United Nations Millennium Development Goals of providing proper and
sustainable shelter, sanitation as well as eradicating informal settlements by
2014.
It is against this
backdrop that the Department of Human Settlements should be commended for their
tireless work of ensuring that South Africa meets all the targets of the
Millennium Development Goals, especially the ones that relate to Human
Settlements. There are many challenges that have been identified and the
progress seems to be a bit slow and at times makes the nation believe that
these goals are close to impossible. A lot still needs to be done to fast-track
service delivery on the ground. The Department should be commended again for
their 99% budget expenditure, but it would be much appreciated if the level of
expenditure could translate into tangible outputs on the ground that will make
South Africa meet its MDG targets by 2014.
Furthermore, it is
important for the Department to work towards the achievement of other national
priorities.
The Committee has noted
progress on the running projects across Provinces including the National
Priority Projects.
The Department should
strengthen its Monitoring and Evaluation as well as its Project Management and
Expenditure Management.
The Portfolio Committee
on Human Settlements wish to thank the Minister and his Department for the
cooperation and support. Including the following institutions: Office of the
Auditor-General, the Public Service Commission, the Financial and Fiscal
Commission, as well as the Economic Policy Research Institute, for their
contributions and support during interactions with the Committee in the
drafting of the Budgetary Review and Recommendation Report (BRRR) process with
regard to the Budget Vote 31 - Human Settlements for the period 2011/2012.
Report to be considered.