Covid19 intervention by Department of Human Settlements; with Deputy Minister

Meeting report

NOTE: PMG was not present at the meeting. The below is compiled based on the Committee’s official minutes.

The Chairperson opened the meeting and welcomed everyone in attendance. The Chairperson requested all present at the meeting to observe a moment of silence for prayer and/or meditation. She then confirmed the agenda of the meeting, which was to engage with the Department of Human Settlements Report on the Covid19 intervention.

Apologies

The Minister of Human Settlements, Water and Sanitation, Ms Lindiwe Sisulu, tendered an apology for the meeting. Tendered apologies were accepted.

Briefing by Department of Human Settlements (DHS) on the Report on the Covid19 intervention by the Department of Human Settlements

The Acting Deputy Director-General, Mr J Leshabane, introduced his team, namely, Mr N Chainee, Deputy Director-General: Human Settlements, Planning and Strategy, Ms S Ngxongo and Ms L Bele, Acting CFO.   He thereafter proceeded to present the Department’s Report on the Covid19 intervention by the Department of Human Settlements.

The Deputy Minister of Human Settlements, Ms Pam Tshwete, highlighted that the Department of Human Settlements report will be focusing on two sections: Procurement on Temporary Residential Units ((TRU) managed by the Housing Development Agency (HDA) for the identified Informal Settlement and Personal Protective Equipment (PPE).   

The Director General introduced the team from the Department and he stated that the report that they are going to present comprised of two sections, namely In-house matters related to Personal Protective Equipment (PPE) and safe guide of the Department offices to ensure that there is sufficient and proper safety for the employees and the Department.

The second part will focus on community-related programme interventions.

Ms Bele presented the first part.

In-house matters related to Personal Protective Equipment (PPE)

The Department indicated to the Committee that it has four categories of expenses on what it has procured and PPE were classified as masks, face shields, gloves and sanitisers.  The Department indicated it had to fumigate the buildings due to two cases of employees who were COVID19 positive within the Department and according to the COVID19 guidelines, the Department must fumigate the buildings before use.  The Department stated that medical equipment was procured for the nurses to be able to screen each one who enters the premises of the Department.

The Department indicated that it had not taken the route of bid tenders but took the quotation route because the procurements were not major.  They have procured their own empty plastic bottles to save money on buying 500ml of sanitisers - they saw the best route is to buy 25ml of sanitisers and refill those plastic bottles that they have bought.  The Department awarded the services to the lowest bidder, which was:

• Tlakusani group for the plastic empty bottles at an amount of R800 000.
• Phemora Business Enterprises was awarded the services for hand sanitisers at an amount of R25 000
• Rise My Trading and Projects was awarded services for cloth face masks at an amount of R82 000.
• Path Care Vermaak was awarded services for COVID19 tests at an amount of R104 000.
• Layout Trading and Projects was awarded services for hand sanitisers, construction gloves, face shields and cloth face masks at an amount of R41 000.
• Hygiene Excellence was awarded services for hand sanitisers and sanitiser dispensers at an amount of R38 000. 
• Medwell S A Nursing Home was awarded services for nurses appointed to screen employees and visitors at an amount of R77 833. 
• Swinene Solutions was awarded services for disinfecting the DHS buildings for Covid19 and fumigation of pests at an amount of R242 000.

However, when there is a positive case in the Department precinct, the Department is required to disinfect the precinct.   The Department mentioned that all those services providers were designated from the  National Treasury central system database.  The Department stated that it has considered the required requirements of emergency requirements.

Public Outreach Events

The Department stated that since there were specific guidelines to follow due to Covid19 protocols, it was requested gatherings must not be more than 50 people and additional masks, and sanitisers are required.  Travel with Flair was awarded a tender during the 2018 financial year for logistical arrangements for travelling and events management - this service provider ensured that additional masks and sanitisers were onboard.  The contract that was awarded for this service provider was for three years. On 16 October the contract was due to be terminated.  The total amount that was allocated for all contracts awarded by the National Department of Human Settlements was R2.8 million.

Intervention area 1: Informal Settlements and the intervention method was:

• Intensify the hygiene and sanitation program
• Partial relocation where required
• Provide emergency services 

Intervention area 2: Overpopulated/ Dense Public Hostels and the intervention method was:

• Intensify the hygiene and sanitation program
• Partial relocation

Intervention area 3: Overpopulated/ Dense Public Hostels and the intervention method was:

• Intensify the hygiene and sanitation program
• Partial relocation

Summary of the intervention as per lockdown

The Department indicated that the outcome of the virus spreading on level five was very high and low health system readiness. The Department and the provinces had identified

• 29 overcrowded informal settlements identified with 356 000 households across the country for relocation including re-blocking and de-densification and there were not able to practice social distancing.
• In that process there were business plans and implementation processes were amended to prioritise the 29 informal settlements together with HSDG and USDG. The municipality had to provide the Department with the details of interventions and that forms part of the business plans.  In addition to that, there were temporary relocation areas setup - 3 481 hectares of land secured from 39 land parcels procured by the province and the municipality with the assistance of the HDA.
• There was also procurement of service providers appointed in relation to provide services

In relation to level 4 of the lockdown the model to high virus spread to model readiness, construction has commenced with the following:

• Appointment of service providers
• Construction at 80% of completion
• Beneficiaries allocated for relocation
• Hygiene and sanitation programme has been intensified.
• Grants have been re-scheduled to accommodate informal settlement projects
• A steering committee on Covid19 established at national and provincial levels to oversee and monitor the work that has been completed. 

In relation to level 3 of the lockdown, there were policy directives issued to be approved directing the appointment of implementing agents in all the human settlements provinces. 

In-house Interventions through SCM

The HDA was tasked with the responsibility to implement the response plan that related to the establishment of transactional residential areas including the construction of temporary residential units.  They indicated that it is related to areas where there were already established plans.  The HDA followed the procurement processes when awarding tenders to the service providers or the TRU service providers.  They had constituted bid evaluation committees including application committees to evaluate and applicate on the proposals.  The TRU service providers were appointed and awarded a subsidy of R64 000.  The specific projects were Duncan Village redevelopment in the Eastern Cape, Buffalo City Municipality, and the bigger informal settlement - even before the pandemic the plans were already onboard to upgrade the Duncan Village informal settlements.  The contractor that has been appointed to render services to construct 1 174 TRUs is NJR Projects at an amount of R75.6 million.    

In terms of Diepsloot, the response plan entailed the resettlement of 1 348 approved beneficiaries within the Diepsloot informal settlement into completed housing units in River site.  The relocation process had challenges but the Department was attending to it. Within Diepsloot the next intervention was related to construction of 1 480 TRUs the contract has been appointed and awarded at an amount of R110 million.

The next project was in Zanspruit, Johannesburg. The intervention was related to the construction of 1 402 TRUs and these were to be constructed on permanent stands.  There were services provided in the form of water tanks and chemical toilets and these were to be upgraded incrementally.  The contractor that had been appointed was Siyeki at an amount of R32 million for the construction of 500 units and there were facilitation challenges but the city was assisting to address the matter.  

The next project was in the City of Johannesburg in Ivory Park the response plan related to the construction of 1 200 TRUs those constructors were appointed to construct approximately 900 of the 1 200 units at an amount of R57 million at allocation of 100 units. The social facilitation issues have been resolved and the construction commenced.  However there were service providers that the HDA appointed to assist with site clearances: Rovanga  R183 000 and Thobile with the fencing that had been erected on the development and that cost around R323 000.

The HDA resettlement intervention was to place 1 500 qualifying beneficiaries into completed units in Elaija Bahai, the service provider that was appointed was mainly responsible for relocation is Rovanka and Dine and Joyce there were contracted at an amount of R4.3 million and 2.8 million.

The Mamelodi Phumulong informal settlement was to accommodate Mamelodi flood victims. The contractor that was appointed was Erna at an amount of R6.4 million and they will be constructing 100.   However, the land that has been secured was meant for permanent human settlement habitation so they are working on an upgrade and the beneficiaries were allocated 200 or 150 square meters per stand.

Discussion

The Committee welcomed the presentations, and raised the following aspects related to the presentation:

Ekurhuleni Municipality have evicted people from the informal settlement

There are policies that the Department of Human Settlement had indicated that they need to present before the Committee.

The Department has promised to compile a list of quantities procured and submit it to the Committee.

On the presentation, it was stated that 80% completion on construction against 20% that was incomplete - clarity was required and the timeframe.

More information is required by the Committee to be submitted on details on 3 481 in hectares of land

In terms of HDA, are there minimum standards used in the development plan on the specifications for TRUs?

What was the reason to build those kinds of emergency houses?

 The assistance is one of the programmes that the Department has in their housing code, which is the booklet that contains all the programmes that the Department is implementing including the informal settlements upgrading.  The intention of the programme is to provide temporary assistance in the form of a shelter and shelter cannot be permanent. 

Another issue that was raised was on costing

What the Department does when costing is to research and emanate figures on how much each unit should cost, however for an RDP house, they charge according to square meters which is 40sq meters cost R116 000.  In addition to that, they stated that they have a minimum standard for units between 24sq and 30sq meters and costing at an amount of R64 000.  The University of Stellenbosch has an instrument that is utilised by the Department for costing which is called the Building Cost Index (BCI)   

Why is government not providing land to the people so they can build their own houses?

The land does not belong to the Department of Human Settlements; the land belongs to the Department of Public Works. The Duncan village has identified land for themselves; the units are temporally not permanent  

Upgrading of the informal settlements

The upgrading of the informal settlements was done in a matter whereby it was too slow and communities had insufficient response  

Temporary relocations

When beneficiaries are relocated to another place the Department assists by calculating all the costs including all transportation cost  

Why has Travel with Flair been awarded so many contracts by the Department?

The Department indicated that Travel with Flair is contracted to run its events and is complying with the COVID19 regulations, however, the Department will procure its own PPE in future when hosting an event.

The Department was allocated an additional amount of R2.8 million            

The Department indicated it has started to compile a report that it will come and present to the Committee at a follow-up meeting for the outstanding information requested by Members.

Clarity on the issue relating to whether this will not impact the issuing of FFCs

The issue of Information Technology Systems (IT) is the problem and the Department is remedying the problem however, they are certain that this will not affect issuing of FFCs.  The Department ensures it complies with the requirements in terms of the timelines of which FFCs are issued because they believe that it is a tool of trade for an estate agent.  Delays will have a serious impact with regard to their productivity especially now under the conditions that they working under in relation to COVID-19.

Clarity on the ERP processes

There has been an extension of the closing date for the ERP process due to the consequences of National Treasury prescribing that all tender processes should be extended due to COVID-19 and the Department was given specific timelines to effect the extension.  Tenders open before lockdown were declared extended by the Department due to National Treasury instructions.

Conclusion

The Committee was not satisfied with the report presented by the Department - Members said the report had gaps and requested more detailed information. 

The meeting adjourned at 21h10.