Department of Housing Annual Report 2004 – 2005: briefing

Meeting report

HOUSING PORTFOLIO COMMITTEE
26 October 2005
DEPARTMENT OF HOUSING ANNUAL REPORT 2004 – 2005: BRIEFING

Chairperson: Ms Z Kota (ANC)

Documents handed out:
Meeting agenda for 26 October 2005
Minutes for the meeting held on 11 October 2005
Department of Housing Annual Report 2004 – 2005: presentation
Department of Housing Annual Report 2004 – 2005 [see www.housing.gov.za]

SUMMARY
The acting Director-General of the Department of Housing briefed the Committee on its Annual Report 2004 – 2005. The presentation provided an overview of the Department's activities over the past year and documented the achievements in service delivery. National and Provincial expenditure statistics were supplied. The Committee raised a number of concerns about provincial expenditure in relation to the number of units completed. Members questioned the figures that were provided on the number of planned units and asked for further clarification when the Department met with the Committee again. The Committee felt strongly that checks and balances should be in place during implementation so that fraud and corruption could be avoided.

MINUTES

Department of Housing: Annual Report 2004 – 2005 presentation
Mr Mziwonke Dlabantu, National Director of Housing and acting Director General, presented the Annual Report to the Committee. He stated that the aim of the Department was to determine, finance, promote, coordinate, communicate and monitor policy in respect of housing and settlement. The Department was mandated by Section 26 of the SA Constitution and operated in the legislative framework of the Housing Act (No. 107 of 1997).

For the year 2004 – 2005, the activities of the Department were organised into six programmes: Administration; Housing Policy Planning and Research; Housing Programme Management; Housing Sector Performance; Housing Equity and Housing Development Funding.

Each programme had an individual purpose and measurable objective. These objectives were
followed stringently as each programme produced several achievements in service delivery.

Programme 6, Housing Development Funding, was explained further as it had been a contentious issue among local, provincial and national government. The challenges that faced this programme were the need for serious intervention in unblocking projects to fast track service delivery and for the improvement of planning, spending and alignment of the project life cycle.

The post-audit final results of the Conditional Grants Expenditure Report were explained in relation to provincial performance. These results were graphed and tabled to highlight individual provincial expenditure trends as well as the projected number of planned projects and built units.

Discussion
Mr G Schneemann (ANC) asked on what basis the Department justified 'good spending' in provincial housing plans. He questioned how the spending was monitored. There was a worrying trend in the figures for some provinces. He asked how the Department interacted with the provinces.

Mr M Dlabantu, acting Director-General, noted that the Department was developing measures to address a number of the issues raised. The Department had monitored spending verification and had engaged the Department of Public Service and Administration (DPSA) on issues of further monitoring. The monitoring committee was being upgraded to keep track of project implementation.

He noted that a number of problems with the programmes were being rectified through investigation. An impact had been made on planning and spending through implementation reports that were done on contractors. Corrupt contractors would be identified in ensuing reports.

He stated that the Department had been in contact with provinces on a number of housing issues. Information was being extracted from housing projects and progress payments were being monitored through tripartite discussions in certain provinces.

The issue of infrastructure was the subject of inter-governmental discussions. He noted that internal infrastructure had not only been the delivery of a shell. A house with internal services was being provided. Better co-ordination was needed for planning issues.

Mrs B Dambuza (ANC) asked about the amount of communication between the Department of Housing and other Departments. She was concerned about the slow pace in resolving farm workers' housing problems. She questioned the progress of the administrative programme and how it was dealing with irregularities.

Mr Diet van Broembsen, policy planner with the Department, responded that farm worker housing had been problematic because of the attempts to develop a model plan for farm areas. The research conducted thus far had indicated that 'off-farm' settlements would be the preferred option. The challenge had been 'on-farm' housing. The commercial farming community had not seen the project as housing reform and unions wanted tenure arrangements and neutral agreements. Bilateral talks had taken place and consultants were asked to broaden the scope.

Mr Aaref Osman, acting Deputy Director-General, stated that the rights of farm workers had to be improved.

Mr S Masango (DA) asked if the money spent on housing could be converted into a figure to indicate how many units were built. There was a problem with the payment of contractors. He asked what the Department was doing to rectify this problem. He queried the present objective the Department was setting for itself concerning completed units. He asked how fraud and corruption were being measured.

Mr A Steyn (DA) noted that the expenditure in the last few months of the financial year peaked and then dropped sharply in the following months. He queried the figures supplied in the Report in regard to the number of planned units and the number of units actually built. He asked what the Department was doing to stop corruption.

Mr Saths Moodley, special advisor to the Minister, noted that things done at local level could not be determined by the Department. There was a plan to do unannounced local inspections. He commented that the time between approval and finished construction had varied. Measures would be put into place to assist provinces with approval timelines. He stated that deadlines should be adhered to through a methodological planning process.

The Chairperson noted that the Committee was not convinced that the Department was addressing the issues Members had raised.

Mr G Schneemann (ANC) commented that the Committee needed a timeframe to know when the issues would be completed. He noted that the Auditor-General had commented on the very high vacancy rate in the Department. He asked what had been done to fill these posts. He asked how the Department was increasing the numbers of disabled persons in its employment.

Mr M Dlabantu responded that data would be made available after the meeting. A Heads of Department meeting was scheduled for 27 October where consultants would be asked to gather data from various stakeholders and discuss the information with the respective parties.

He noted that the high level of vacancies had resulted from restructuring. The capacity had increased rapidly and short-term contracts were being discussed.

Mrs B Dambuza (ANC) stated that there had been no commitment to municipalities regarding Programme Three. The progress of scholarships had to be addressed.

Mr Johan Wallis, programme manager for the Department, replied that the scholarship programme was progressing. There were eight candidates still studying at school and that ten more were recommended for review. He noted that the Annual Report demonstrated that a number of courses were being conducted in provinces.

Mr A Steyn (DA) suggested that money that had been spent needed clarification and that the Department should look at it again. He asked how spending and the delivery of units had worked.

Mr S Moodley responded that the Committee should develop preliminary questions so that the Department could provide a better indication of how data was being collated. He suggested that another meeting be arranged for the Department to respond to the Committee's questions.

Mr Dlabantu stated that the Department was developing measures to address irregularities and that officials would start taking responsibility for their provinces.

The Chairperson noted that Members would analyse the Annual Report and question the Department at the next meeting.

The meeting was adjourned.