Reply:

Honourable Member, the Vulindlela Housing Project is a rural Enhanced People’s Housing Process project, implemented on Ingonyama land in the Umgungundlovu District Municipality within the uMsunduzi Municipality. It is an embodiment of the principles of community involvement and institutionalisation of the participatory approach in delivering integrated sustainable human settlements.

The Vulindlela community established the Vulindlela Development Association (VDA), a Section 21 Company made up of the leadership of the five tribal authorities of the Vulindlela area. The VDA started the Vulindlela project after it secured approval from the MEC for Human Settlements in KwaZulu Natal. The project is meant to deliver 25 000 PHP units in nine (9) Wards over five (5) years, which was later extended to eight years. This is the first PHP project to be delivered at such a large scale. To date, 15928 units have been completed.

Over and above the implementation of the project through the people’s Housing Process (PHP) programme, I wish to summarise other project benefits as follows:

1. The Cooperative model implemented within the project had transformed the lives of the people in and around Vulindlela. The ownership of the business interests within this project rests with the beneficiaries who are part of the various Cooperatives set up;
2. Jobs have been created and the community upskilled on numerous construction and related skills. Local contractors are utilized and promoted business partnerships to ensure long term growth and sustainability;
3. Poverty eradicated because of employment opportunities created;
4. The project has harnessed social cohesion amongst different political groups from various tribal divides;
5. The community has been empowered to partner with government and take charge of their own development;
6. The institutional arrangements within the project allowed for a top-down and bottom-up approach, no decisions were imposed on beneficiaries and
7. Capacity building initiatives were delivered at scale e.g. Experiential learning was offered to technical students, accredited construction management course was offered and beneficiaries interested to participate in the project were trained on the different construction skills including block/brick laying, masonry, carpentry, painting, plastering works etc.

(a) & (b) As alluded to above, the Vulindlela People’s Housing Process housing project does not use contractors.

(i)The project is implemented through the People’s Housing Process Programme utilising the Cooperative model.

(ii) There are fifteen (15) Cooperatives established and working in the nine (9) wards within the Vulindlela Project. There are nine (9) Construction Cooperatives established, one (1) in each Ward, divided into slab, wall plate and completion, three (3) Block Yard Cooperatives where door and window frames, three (3) Transport Cooperatives.

Reply:

(a) The Vulindlela Rural Housing Project commenced in March 2011.

(b) The progress of the project is as follows:

Completed Platforms: 19 490

Completed slabs: 18 413

Completed wall plates: 16 922

Completed Houses: 15 928

Completed Houses with Jojo tanks installed: 15 667

(c) (i) Completed houses: 15 928

(ii) Units occupied: 15 667

(d) Approved Project Budget: R2 587 053 561.62

Expenditure to date: R 1 765 667 534.36

Balance of available Project Budget for MTEF: R821 386 534.36

Reply:

(a) Unspent Funds in 2014/2015 financial year for the Human Settlements Development Grant (HSDG)

Provinces	2014/15
	Total Available	Expenditure	(a) Total Unspent Funds
	R'000
Eastern Cape	2 392 718	2 392 718	-
Free State	1 061 756	1 061 933	-
Gauteng	4 430 595	4 404 618	25 977
KwaZulu Natal	3 509 045	3 510 523	-
Limpopo	825 043	517 032	308 012
Mpumalanga	1 327 960	1 257 579	70 380
Northern Cape	374 832	374 832	-
North West	1 517 136	1 517 132	4
Western Cape	1 934 936	1 934 936	-
Total	17 374 021	16 971 303	404 373

The total amount of funds available for allocation to Provinces in the 2014/2015 financial year was R17, 374, 021, 000. As at the 31st March 2015, R16, 971,303,000 was spent. A total of R404 million remained unspent by three Provinces. The Limpopo and Mpumalanga Provinces are the two provinces which requested a rollover on their unspent funds. The National Treasury approved the requested rollovers to the 2015/2016 financial year.

b) Unspent Human Settlement Development Grant funds in the 2015/2016 financial year

Provinces	2015/16
	Voted Funds	Approved Rollover	Total Available Funds	Expenditure	(b) Total Unspent Funds
	R'000
Eastern Cape	1 962 372	-	2 462 372	2 458 180	4 192
Free State	1 057 284	-	1 057 284	1 057 237	47
Gauteng	4 979 844	-	4 071 467	4 048 079	23 388
KwaZulu Natal	3 235 475	-	3 543 852	3 543 852	-
Limpopo	1 283 877	308 012	1 591 889	1 123 299	468 590
Mpumalanga	1 265 162	70 380	1 335 542	1 335 486	56
Northern Cape	380 408	-	480 408	476 559	3 849
North West	2 063 131	-	2 163 131	2 163 129	2
Western Cape	1 975 122	-	1 975 122	1 975 122	-
Total	18 202 675	378 392	18 681 067	18 180 943	500 124

For the 2015/16 financial year, the total available funds for the HSDG was R18, 681,067,000 including a rollover of R372, 392, 000. An amount of R18, 180, 943, 000 was spent, with an amount of R500, 124, 000 remaining underspent by three Provinces. The Eastern Cape, Limpopo and Northern Cape Provinces requested a roll over for the unspent funds. The National Treasury approved a total of R403 million consisting of R4, 186,000 for Eastern Cape, R394, 842, 000 for Limpopo and R3, 821, 000 for Northern Cape.

c) Unspent funds in the 2016/2017 financial year – HSDG

Provinces	2016/17
	Voted Funds	Approved Rollover	Total Available Funds	Expenditure	(c) Total Unspent Funds
	R'000
Eastern Cape	1 991 457	4 186	1 995 643	1 995 643	-
Free State	1 098 411	-	1 098 411	1 098 317	94
Gauteng	5 022 669	-	5 022 669	4 978 964	43 705
KwaZulu Natal	3 124 702	-	3 124 702	3 123 330	1 372
Limpopo	1 208 370	394 842	1 603 212	1 517 376	85 836
Mpumalanga	1 314 645	-	1 314 645	1 302 757	11 888
Northern Cape	371 109	3 821	374 930	368 127	6 803
North West	2 151 817	-	2 151 817	1 951 247	200 570
Western Cape	2 000 811	-	2 000 811	2 000 811	-
Total	18 283 991	402 849	18 686 840	18 336 572	350 268

National Treasury indicated that all the Provinces with unspent funds have requested approval for rollovers. The requests by Provinces are currently being processed by National Treasury.

Reply:

Honourable Member, in accordance with the established practise applicable to parliamentary questions and guidelines contained in the document titled, “Guide to Parliamentary Questions in the National Assembly”, I will not provide names of the companies or contractors who have been blacklisted, suspended and/or penalised for poor workmanship, failure to deliver projects on time. The document referred to prohibits Members of Parliament, including the Executive, from divulging names of persons, bodies when asking or responding to parliamentary questions. It specifically states the following:

 

“Questions are to be framed as concisely as possible. All unnecessary adjectives, references and quotations are omitted. Names of persons, bodies and, for example, newspapers are only used in questions if the facts surrounding the case have been proven. As the mere mention of such names could be construed as publicity for or against them, it should be clear that this practice is highly undesirable. If a question will be unintelligible without mentioning such names, the Departments concerned are notified of the name (-s) and this phrase is used: ".......a certain person (name furnished)”

The information provided by the provinces in response to the Honourable Members question is provided in the table below:

Province	2014/15 (blacklisted/ Suspended/ Penalised)	2015/16 (blacklisted/Suspended/ Penalised	2016/17 (blacklisted/Suspended/ Penalised
Free State	None	None	None
Gauteng	None	Contracts of three companies were terminated	Contracts of two companies were terminated
KwaZulu-Natal	None	None	None
Northern Cape	None	None	Contracts of two companies were terminated
Western Cape	None	4 companies were penalised as follows: 1. The size of the penalty was R427 845.00. 2. The size of the penalty was R5 449 500.00 3. The size of the penalty was R87 791.71.00. 4. The size of the penalty was R285 450.00. Reasons for the penalties mentioned above: 1. The penalty was for “Failed Local contractor development goals”. 2. The penalty was for “Late project delivery”. 3. The penalty was for “Late project delivery”. 4. The penalty was for “Late project delivery”.	One company was penalised R101 000.00 for “Late project delivery”.
Mpumalanga	None	None	None
North West	None	None	None
Limpopo	None	None	None
Eastern Cape	15 companies were suspended	7 companies were suspended	2 companies were suspended

Reply:

Honourable member, in accordance with the document titled, “Guide to Parliamentary Questions in the National Assembly”, which prohibits Members of Parliament, including the Executive, from divulging names of persons, bodies when asking or responding to parliamentary questions, I am unable to provide names of the companies as requested above. The document referred to states the following:

“Questions are to be framed as concisely as possible. All unnecessary adjectives, references and quotations are omitted. Names of persons, bodies and, for example, newspapers are only used in questions if the facts surrounding the case have been proven. As the mere mention of such names could be construed as publicity for or against them, it should be clear that this practice is highly undesirable. If a question will be unintelligible without mentioning such names, the Departments concerned are notified of the name (-s) and this phrase is used: ".......a certain person (name furnished)”

The information received from the provinces in response to the Honourable member’s question is provided below:

EASTERN CAPE

(1) The Province has one (1) project with the value of over R250 million and details are provided as in the Table below:

No.	Commencement Date	Current status	Targeted Date of Completion	Service contracted for	Contract Amount
		R'000			R'000
1	13 October 2015	In progress/running	13 October 2018	PE-Joe Slovo West 4000 BNG: Erection of 2 000 Top Structures	263 074 520

(2) (a) & (b) The amounts of top ten tenders awarded are outlined in the table below:

Number	(b) Value of Each Tender
	R'000
1	263 074 520
2	247 851 335
3	226 931 150
4	225 129 836
5	204 297 380
6	203 858 485
7	200 207 852
8	199 890 000
9	181 021 815
10	175 731 667

(c) (i) 13 609.

(ii) 13 768.

FREE STATE

(1) The Province has a total of two (2) projects with the value of over R250 million as illustrated in the table below.

No.	Commencement Date	Current Status	Targeted Date of Completion	Service Contracted for	Contract Amount
					R'000
1	19 June 2012	Practical Completion Reached	31 March 2016	1 700 Subsidies	284 228
2	06 March 2013	in Progress	31 December 2017	Hostel Upgrading	265 509

(2) (a) & (b) The amounts of top ten tenders awarded are outlined in the table below:

Number	(b) Value of Each Tender
	R'000
1	265 509
2	241 935
3	238 866
4	194 979
5	150 970
6	131 055
7	128 898
8	126 453
9	124 765
10	123 420

(c) (i) 12 298

(ii) 8 505

GAUTENG

(1) The Province has a total of eight (8) projects with the value of over R250 million as illustrated in the table below:

No	Date of Commencement	Current status	Targeted Date of Completion	Service Contracted for	Contract Amount
					R'000
1	01 April 2014	123 units completed	30 June 2015	Jabulani Ext, 1 Housing Development, 112 CRU and 508 housing units	240 166
2	02 July 2012	208 fully subsidised houses and 334 backyard rentals completed	31 March 2017	Servicing and Construction of 5 523 residential units,(1324 fully subsidised houses, 2 172 Backyard Rentals and 669 Flisp)-Cosmo City	253 710
3	05 September 2014	1 832 fully subsidised houses(2012/13), (2016/17)-112 fully subsidised houses	30 June 2023	Lufhereng mixed housing project-24 142 houses	1 322 769
4	01 September 2015	280 services completed and bulk link services is 30% complete	31 March 2017	Installation of 2 842 services and construction 2 842 through IRDP, construction of 205 houses through FLISP and 823 social housing-Sebokeng	607 185
5	04 August 2014	all the 2 905 stands have been completed and issued with service certificates	31 March 2016	Construction of water and sewer network for 2 905 units at Hammanskraal	260 946
6	01 April 2014	The project is 30% complete	31 March 2017	Construction of overall sewer network in Bekkersdal for 50km	317 144
7	01 April 2013	420 houses completed,74 at 90%, 200 FLISP complete, 2 008 stands complete and 900 wall plates and foundations	31 March 2021	Construction of 6 470 houses through IRDP and 6 470 FLISP-Savanna City	1 395 057
8	01 January 2016	260 RDP houses completed,834 RDP houses at 95% and 49 MV,354 RDP wall plates and foundations and 69 MV	31 December 2016	Mixed Development Project-1 232 low cost houses, 98 military veterans houses and 550 units of rental stock	416 631
9	01 June 2015	192 units at 95% completion	30 June 2018	Refurbishment of 672 hostel units and the fixing of leaks on the 3 hostel sections at KwaMasiza Hostel-Sedibeng	197 903
10	01 July 2015	811 houses and 256 Social Housing Units	31 March 2019	Fleurhof construction of 2 216 houses and servicing stands in Fleurhof Ext,2	237 850

(2) The amounts of top ten tenders awarded are outlined in the table below:

Number	(b) Value of Each Tender
	R'000
1	240 166
2	253 710
3	1 322 769
4	607 185
5	260 946
6	317 144
7	1 395 057
8	416 631
9	197 903
10	237 850

(c) (i) 25 417

(ii) 40 106

KWAZULU-NATAL

The Province has a total of ten (10) projects over the value of R250 million as illustrated in the table below:

Number	Commencement Date	Current Status	Targeted Date of Completion	Service provided for	Contract Amount
		R'000			R'000
1	06 January 2015	52 546	06 January 2022	KwaMashu, Umlazi and Klaarwater Rehabilation of 23 517 units(rectification)	2 575 077
2	19 February 2014	1793 374	01 March 2018	Edendale (Msunduzi) Rural Housing(EPHP)-25 000 units	2 543 241
3	11 March 2015	112 011	10 September 2016	KwaMashu and Umlazi Rehabilation of 9003 units	611 692
4	11 March 2015	54 682	10 September 2017	Newlands:Rectification-7 933	524 630
5	07 January 2013	354 640	31 December 2016	KwaMashu, Umlazi and Glebelands Hostel Upgrade-100	455 640
6	18 August 2015	398 548	18 September 2017	Cornubia phase 1B Housing Project-2 263	448 558
7	01 November 2016	89 705	31 March 2022	Mandeni:Inyoni slums clearance initiative-3 020	447 083
8	18 January 2016	80 595	30 September 2018	Umbumbulu:Rural Housing Project-2 850	357 969
9	25 March 2014	241 264	25 March 2017	EThekwiuni (various sites)Storm damaged-5 329	300 216
10	01 July 2016	21 378	31 July 2021	Maphumulo: Rural Housing-2 000	260 408

(2) The amounts of top ten tenders awarded are outlined in the table below:

Number	(b) Value of Each Tender
	R'000
1	611 692
2	448 558
3	180 749
4	178 724
5	166 610
6	166 344
7	153 890
8	148 347
9	141 097
10	132 042

(c) (i) 35 847

(ii) 29 951

LIMPOPO 3A below.

Number	Commencement Date	Current status	Targeted Date of Completion	Service Contracted for	Contract Amount
					R'000
1	07 December 2016	Site establishment	07 December 2018	Marapong CRU ( Lephalale)	298 000

(2) (a) The names of the Companies that have been awarded the top ten tenders are outlined as per the table below:

Number	(b) Value of Each Tender
	R'000
1	12 619 219
2	11 814 858
3	6 395 364

(c) (i) 3 082

(ii) 13 845

MPUMALANGA

(1) (a) The province does not have projects over the value of R250 Million

(b) and (c)

Number	(b) Value of the Tender
	R'000
1	173 696
2	112 784
3	59 225
4	58 590
5	55 946
6	54 333
7	34 975
8	34 742
9	29 613
10	28 400

(c) (i) 11 491

(ii) 10 661.

NORTHERN CAPE

(1) (a) None

(b) Not applicable

(c) Not applicable

(2) (a) Contractors are changed yearly

(b) Not applicable

(c) (i) 2 133

(ii) 1 337.

NORTH WEST

(2) (a) The Province has two (2) projects over the value of R250 million as illustrated in Table below:

No.	Commencement Date	Current status(units completed)	Targeted Date of Completion	Service Contracted for	Contract Amount
1	27 July 2004	in progress	10 October 2017	Meriting ext. 4 & 5:Rustenburg:building of houses-1590 units	293 299
2	10 February 2015	complete	07 January 2017	Vryburg ext. 28 (Dr Ruth Mompati Municipality) building of houses-1500 units	269 241

(a) The names of the Companies that have been awarded the top ten tenders are outlined as per the table below:

Number	(b) Value of Each Tender
	R'000
1	269 241
2	212 000
3	166 000
4	155 000
5	128 000
6	103 000
7	96 101
8	95 333
9	94 427
10	86 853

(c) (i) 11 49

(ii) 10 661.

WESTERN CAPE

The Province indicated that it does not have any projects over the value of R250 million. The highest bid awarded was R228 284 427.

(b)(i) 24 August 2016

(ii) Contractor on site

(iii) 23 August 2021

 

Number	(b) Value of Each Tender
	R'000
1	2 052
2	100 877
3	78 761

(c) (i) 16 678

(ii) 20 558

Reply:

Honourable member, from the onset I wish to bring to your attention the document titled, “Guide to Parliamentary Questions in the National Assembly”, which prohibits Members of Parliament, including the Executive, from divulging names of persons, bodies when asking or responding to parliamentary questions. This document states the following:

“Questions are to be framed as concisely as possible. All unnecessary adjectives, references and quotations are omitted. Names of persons, bodies and, for example, newspapers are only used in questions if the facts surrounding the case have been proven. As the mere mention of such names could be construed as publicity for or against them, it should be clear that this practice is highly undesirable. If a question will be unintelligible without mentioning such names, the Departments concerned are notified of the name (-s) and this phrase is used: ".......a certain person (name furnished)”

Accordingly, in the reply below, I will not provide names of persons or bodies for whom gifts were bought or donations/sponsorship given to.

Further, in the reply provided below we include purchases of flowers for staff members who are hospitalised and their bereaved families, which does not necessarily qualify to be regarded as gifts. The Department also purchases gifts when the Minister meets with foreign delegations or her counterparts.

DEPARTMENT AND ITS ENTITIES	2013/2014	2014/2015	2015/2016
Estate Agency Affairs Board	None	None	None
Social Housing Regulatory Authority	R 25 000.00	None	R61,306.00
National Home Builders Registration Council	R506 033.50	R234 582.00	R195 000.00
Housing Development Agency	R25,405.00	R26,039.00	R41,532.00
National Urban Reconstruction and Housing Agency	R31,489.07	R89,926.14	R12,056.00
Rural Housing Loan Fund	R87,500	R34,999.50	R181,642.10
Community Schemes Ombud Service	None	None	None
Department of Human Settlements	R 10 241 089.23	R 497 076.69	R 452 18.89.89

Reply:

The information requested by the Honourable Member is available in the audited financial statements found in the 2014 and 2015 annual reports of the eight entities reporting to me. The audited financial statements for 2016 are currently being audited and the annual reports containing these will be tabled in Parliament around August in accordance with section 65 (1) (a) of the Public Finance Management Act, 1999.

Reply:

(a) & (b) The National Department of Human Settlements and the eight entities reporting to me did not procure any service(s) from and/or made payments to (i) the company referred to by the Honourable Member or (ii) any other Public Relations firm.

 

Reply:

In my reply to question 126 I indicated the following:

“The information provided by the North West Provincial Department of Human Settlements is as follows:

(a) The project commenced in June 2008.

(b) &(c) The progress made in respect of the project in Khudutlou Village is as follows:

• 3 Houses were completed
• 9 Units were at the roof level
• 11 Units were completed up to wall plate level
• 2 Slabs were completed

Due to poor workmanship, construction on the project has been put on hold and the North West Provincial Department of Human Settlements indicated that they are awaiting an engineering report with a view to considering cancellation of the contract.

(d) (i) The cost of the project is R1 282 025 for 25 units.

(ii) The total projected cost is R 2 569 200.

Furthermore, and for the benefit of the Honourable member who has recently joined the Portfolio Committee on Human Settlements, I wish to reiterate what I said during the Policy Debate on the budget of my Department on 12 May 2015 in the NCOP. I indicated,

“We are no longer rectifying houses using our budget. Any house that has defaults is the responsibility of the National Home Builders Registration Council (NHBRC), which is responsible to identify the contractor and ensure that they rectify the shoddy work at their own cost. The money currently used on rectification can and will be used in building more houses”.

Accordingly, I have requested the MEC for Local Government and Human Settlements in North West to provide me with a full report on this matter with a view to ensure that contractor responsible returns on site to undertake remedial work or is blacklisted if found to be in breach of the contractual agreement”.

In respect of this follow up question, I wish to add that there were no other contractors involved in the housing project in Khudutlou Village and reiterate that an amount of R1 282 025 was paid to the contractor for 25 units delivered.

With regards to the request for name(s) of contractors involved in the housing project referred to in this question, I am constrained and prohibited by the document titled “Guide to Parliamentary Questions in the National Assembly” from providing the Honourable Member with the name of the contractor. The document referred to states that:

“Questions are to be framed as concisely as possible. All unnecessary adjectives, references and quotations are omitted. Names of persons, bodies and, for example, newspapers are only used in questions if the facts surrounding the case have been proven. As the mere mention of such names could be construed as publicity for or against them, it should be clear that this practice is highly undesirable. If a question will be unintelligible without mentioning such names, the Departments concerned are notified of the name (-s) and this phrase is used: ".......a certain person (name furnished)”

I encourage the Honourable Member to provide me with any information that will assist me to deal with any challenges regarding the housing project Khudutlou Village.

Reply:

The information requested by the Honourable Member is available in the audited financial statements found in the 2014-15 and 2015-16 annual reports. The audited financial statements for 2016-17 are currently being audited and the annual report containing these will be tabled in Parliament around August in accordance with section 65 (1) (a) of the Public Finance Management Act, 1999.

Reply:

The information requested by the Honourable Member is available in the audited financial statements found in the 2014-15 and 2015-16 annual reports. The information for 2016-17 is currently being audited as part of the annual reporting in accordance with section 65 (1) (a) of the Public Finance Management Act, 1999.

Reply:

(a) & (b) The National Department of Human Settlements and the entities reporting to me have not (i) procured any services from and/or (ii) made any payments to the Decolonisation Foundation.

Reply:

The Township Establishment Application process for the Sunward Park Ext 24-29 housing development in Leeuwpoort, Ward 43, Ekurhuleni has not been concluded. Internal consultation processes are underway in the municipality to finalise the township layout. Thereafter, formal advertisement and application process will commence.

(a) It should be noted that the formal advertisement will be published as soon as all internal and external departments are satisfied with the draft township layout. We are, therefore, not a position to commit to a date when the process will be concluded. The Environmental Authorisation process is also still ongoing.

(b) Construction cannot commence until the Record of Decision is received from the Gauteng Department of Agriculture and Rural Development, which is subject to an Environmental Impact Assessment (EIA) approval process which is still ongoing.

Reply:

(a) Estate Agency Affairs Board (EAAB)

2013/14	2014/15	2015/16
R317 101	R38 372	R172 583

 

(b) Social Housing Regulatory Authority (SHRA)

2013/14	2014/15	2015/16
R429 482	R483 839	R189 018

(c) National Home Builders Registration Council (NHBRC)

2013/14	2014/15	2015/16
R3 439 925	R12 863 464	R3 702 125

(d) Housing Development Agency (HDA)

2013/14	2014/15	2015/16
R764 097	R771 283	R1 067 728

(e) National Urban Reconstruction and Housing Agency (NURCHA)

2013/14	2014/15	2015/16
R121,482.31	R223,472.30	R98,040.00

(f) Rural Housing Loan Fund (RHLF)

2013/14	2014/15	2015/16
R233 240	R254 616	R329 634

(g) Community Schemes Ombud Service (CSOS)

2013/14	2014/15	2015/16
R0	R652	R1 720

(h) Department of Human Settlements (DHS)

2013/14	2014/15	2015/16
R23 263 0000	R29 607 000	R20 019 000

Reply:

The land referred to in the question belongs to the National Department of Public Works. The Honourable member should approach the Minister of Public Works for information on the land.

Furthermore, the Honourable member should take time to go through the document titled, “Guide to Parliamentary Questions in the National Assembly”, which indicates that the phrase “aware of” should be avoided. This document states that:

“Aware of: In questions we generally avoid the phrase “aware of” and usually formulate the question: “Whether he has been informed of ... / or whether he has received representations regarding ...”.

Reply:

There has not been any forensic investigations initiated against the staff or board members of the (i) Estate Agency Affairs Board, (iii) National Housing Builders Registration Council, (iv) Housing Development Agency, (v) National Urban Reconstruction and Housing Agency, (vi) Rural Housing Loan Fund and (vi) Community Schemes Ombud Service during the past three financial years and since 1 April 2016.

However, there was a forensic investigation initiated against the Council members of the Social Housing Regulatory Authority during 2013/14.

Reply:

Honourable member, of the eight entities reporting to me, there are two entities with vacant positions. The Councils of the affected entities have assured me that they are prioritising the filling of these vacancies. Please find the detailed information in the table below.

 

Entity	Chief Executive Officer (CEO)	Chief Financial Officer (CFO)	Chief Operating Officer (COO)	Advertisement of the vacant post or measure taken to fill the position
National Home Builders Registration Council (NHBRC)	Vacant	filled	Filled	The position was advertised and the last candidate shortlisted was interviewed on 04 April 2017. The process for competency assessment and security screening will then be undertaken. There is an Acting CEO and the official did not apply for the position.
Social Housing Regulatory Authority (SHRA)	Filled	The SHRA structure as per the Social Housing Act does not provide for a Chief Financial Officer	Filled	Not applicable
Rural Housing Loan Fund (RHLF)	Filled	Filled	Vacant in that it appears on the structure of RHLF but it is no longer budgeted for.	The position of Chief Operating Officer is on hold until the DFI Consolidation Process has been concluded.
Estate Agency Affairs Board (EAAB)	Filled	Filled	Filled	Not applicable
National Housing Finance Corporation (NHFC)	Filled	Filled	Filled	Not applicable
Housing Development Agency (HDA)	Filled	Filled	Filled	Not applicable
Community Scheme Ombud Service (CSOS)	Filled	Filled	Filled	Not applicable
National Urban Reconstruction and Housing Agency (NURCHA)	Filled	Filled	Filled	Not applicable

Reply:

(a) and (b):

Province	Name of housing project	Number of units unoccupied	Number of units partially occupied
EC	Potsdam Jamestown 858 Uggiue 1456	0	154 25 79
FS	Verification is being conducted	261 verified to date that are vacant	0
GP	Westside Park Sonderwater Evaton Show Village Malibongwe Ridge mixed housing project Lawley Ext 3 & 4 (Temi - Iyabo)	36 18 13 79 houses & 336 rental units 200	0
KZN	All units completed are occupied
LP	Information is being verified
MP	All units completed are occupied
NC	All units completed are occupied
NW	Rustenburg Marikana Ext 2 CRU 126, Motheo Rustenburg Marikana Ext 2 CRU 126, Andisa Matlosana CRU Proplan	126 126 100	0
WC	All units completed are occupied

Reply:

(1) The Estate Agency Affairs Board, National Housing Builders Registration Council, Housing Development Agency, National Urban Reconstruction and Housing Agency, Rural Housing Loan Fund and the Community Schemes Ombud Service have not initiated any forensic investigations against the staff or board members in the past three financial years

In respect of SHRA, it is to be noted that on or about July 2013, the National Department alerted the Social Housing Regulatory Authority Council of alleged act(s) of maladministration of management. The SHRA Council then commissioned a forensic audit investigation, which determined that there was substance to the allegations.

Further investigations were conducted and finalized under the leadership of the Accountant General and National Treasury, who concluded that disciplinary action be taken against officials of SHRA and the department who were involved in the conduct investigated. With respect to criminal conduct, the Accountant General referred those aspects to law enforcement agencies for further action in the normal course. My department will be informed of progress should their involvement be required. Regarding the assets that were in possession of third parties, those aspects were also referred by the Accountant General to the Asset Forfeiture Unit ( AFU) for preservation and forfeiture to the State.

(2) The officials involved resigned from SHRA before the Accountant General commenced with the investigation. Another official left due to the contract of employment coming to an end.

(3) No

Reply:

The information requested by the Honourable member is provided below:

(a) Estate Agency Affairs Board

Type of Event	Date and Venue	Total Amount
1. Corporate Governance Workshop – 3 Days	24-26 November 2014, Protea Hotel – OR Tambo Airport	R199 988
2. Strategic Planning Session	10 June 2016, Serengeti Golf Estate, Ekurhuleni	R39 325
3. Strategic Planning Session	05 May 2015,Muldesdrift	R54 387
4. Strategic Planning Session	11 July 2014,Protea Hotel, Midrand	R64 337

(b) Social Housing Regulatory Authority

Type of Event	Date and Venue	Total Amount
1. Council Strategic Session	11-12 October 2015, Kievetskroon, Tshwane	R51 981.31
2. Council Strategic Session	08-09 December 2015, Indaba Hotel, Johannesburg	R46 888.30
3. Staff Strategic Session	13 July 2013,Thaba Tshwane	R30 270.00

(c) National Home Builders Registration Council

Event	Date and Venue	Total Amount
1. EXCO Strategic Planning Workshop	7-9 2014, Bon Hotel Riviera on Vaal	R125 400,00
2. EXCO & Management Committee Strategic Planning Workshop Session	23-27 May 2014, 15 On Orange Cape Town	R438 905,96
3. EXCO Strategic Planning Workshop	14-15 May 2015, Mount Grace Hotel, Magaliesberg	R82 110,00
4. Management Committee Strategic Planning workshop	27-28 May 2015, Valley Lodge, Muldersdrift	R180 208,77
5. Council Strategic Planning Workshop	29 June 2015, Palazzo Hotel, Sandton	R16 799,12
6. Council meeting	29 July 2015, Palazzo Hotel, Sandton	R28 200,00
7. Special EXCO meeting	4 March 2016, Focus Rooms	R10 155,03
8. EXCO Team building workshop	17-18 March 2016, Mount Grace Hotel, Magaliesberg	R121 610,60
9. EXCO Turnaround Strategy Workshop	26 April 2016, Focus Rooms	R19 105,60
110. Management Committee Strategic Planning Workshop	9-12 June 2016, Protea Hunters Rest Hotel, Rustenburg	R250 628,95
11. Breakaway with the past session	29-10 June 2016, Velmore Hotel, Tshwane	R37 190,00
12. Council Strategic Planning Workshop	20-21 July 2016, Glenburne Lodge, Muldersdrift	R66 038,00
13. EXCO Strategic Planning Workshop	4-5 August 2016, Glenburne Lodge, Muldersdrift	R55 755,70
14. Management Committee meeting	21 November 2016, Focus Rooms	R21 366,45

(d) Housing Development Agency

Event	Date and Venue	Total Amount
2015/16 1.Conference	31-May 2015 , Usambara lodge,	R61 645
2014/15 2.- Strategic Session - Consultative meeting with Developers - Strategic Session - Exco Strategic Session - Conference	01 October 2014,Glenburn Lodge, 01 November 2014,Glenburn Lodge 01 December 2014 ,Houghton Board room 31 March 2015,Usambara Lodge	R59 688 R48 741 R14 612 R14 780
2013/14 3.- Conference - Exco Strategic Planning	01 June 2013, Glenburn, 06 August 2014, Protea Hotel OR Tambo	R66 097 R7 004

(e) National Urban Reconstruction and Housing Agency

Event	Date and Venue	Total Amount
1. Contractor and Developer Workshop	29 April 2014, Cape Town	R29 000,00
2. Contractor and Developer Workshop	21 May 2014, Durban	R28 072,50
3. Contractor and Developer Workshop	3 June 2014, Port Elizabeth	R9 600,00
4. Contractor and Developer Workshop	4 June 2014, East London	R24 135,00
5. Contractor and Developer Workshop	5 June 2014, Mthata	R18 921,25
6. Contractor and Developer Workshop	26 June 2014, Johannesburg	R58 140,00
7. Contractor and Developer Workshop	27 November 2014, Polokwane	R7 150,00
8. Contractor and Developer Workshop	26 March 2015, Bloemfontein	R18 468,00
9. Contractor and Developer Workshop	19 August 2015, Pietermaritzburg	R25 200,00
10. Contractor and Developer Workshop	20 August 2015, Durban	R24 200,00
11. Contractor and Developer Workshop	1 September 2015, Polokwane	R7 150,00
12. Contractor and Developer Workshop	10 March 2016, Port Elizabeth	R16 000,00

(f) Rural Housing Loan Fund

Event	Date and Venue	Total Amount
1.Annual Client Workshop	13-14 November 2014, Misty Hills, Muldersdrift	R153 142.00
2. Annual Client Workshop	18-19 February 2016,Amazingwe, Haartebeespoort	R139 497.50
3. RHLF Session Strategic Session	01-02 December 2016, Villa Paradiso, Haartebeespoort.	R21 420.00
4. Annual Client Workshop	23-24 March 2017, The Lakes Hotel Conference Centre, Ekurhuleni	R106, 378.00

(g) Community Schemes Ombud Services

Event	Date and Venue	Total Amount
1. Value Program	14-15 May 2015, Leriba Lodge, Tshwane	R94 165.00
2.Board –Strategic Session	04-05 July 2016, The Capital Moloko	R35 600.00

(h) National Department of Human Settlements

Event	Date and Venue	Total Amount
1. Departmental Strategic Planning Session	23-24 January 2014, CSIR, Tshwane	R17 470.68
2. Departmental Strategic Planning	28-29 July 2014, Protea Hotel, OR Tambo Airport	R 85 001
3. Departmental Strategic Planning	25-26 August 2014, Saint Georges Hotel, Irene	R162 878
4. Workshop of the Ministerial Commission on Lwandle Evictions	10 September 2014, Cape Sun Hotel, Cape Town	R 21 150.00
5. Departmental Strategic Planning Session	22 September 2014, Govan Mbeki House, 240 Justice Mahomed Street, Sunnyside, Tshwane	R0
6. Departmental Strategic Planning Session	30 September 2014, Govan Mbeki House, 240 Justice Mahomed Street, Sunnyside, Tshwane	R0
7. Departmental Strategic Planning Session	10 October 2014, Govan Mbeki House, 240 Justice Mahomed Street, Sunnyside, Tshwane	R0
8. Departmental Strategic Planning Session	11 November 2014, Govan Mbeki House, 240 Justice Mahomed Street, Sunnyside, Tshwane	R0
9. Workshop of the Ministerial Panel of Advisors	25 November 2014, Govan Mbeki House, 240 Justice Mahomed Street, Sunnyside, Tshwane	R0
10. Departmental Strategic Planning Session	22 January 2015, Southern Sun Hotel, Arcadia, Tshwane	R5 625
11. Departmental Strategic Planning Session	28 January 2015, Southern Sun Hotel, Arcadia, Tshwane	R27 300
12. Intergovernmental Strategic Planning Workshop	4-5 June 2015, eBandla Hotel, Durban North, Ethekwini	R 71 592.00
13. Human Settlements Developers & Contractors Consultative Workshop	22-23 June 2015,Nelson Mandela Bay Stadium.	R70 890
14. Workshop with Provinces and Metropolitan Cities	24 August 2015, Premier Hotel, OR Tambo Airport, Kempton Park, Ekurhuleni	R30 030
15. Human Settlements Developers & Contractors Consultative Workshop – Nelson Mandela Bay	3 September 2015, Nelson Mandela Bay Stadium	R125 955
16. National Human Settlements Developers & Contractors Consultative Workshop	21 September 2015, Premier Hotel, OR Tambo Airport, Kempton Park, Ekurhuleni	R187 471
17. Strategic Planning and Alignment Consultation with Provinces and Municipalities	28-29 September 2015, Protea Hotel, OR Tambo International Airport	R95 967
18. Workshop of Human Settlements MINMEC	06 October 2015, Birchwood Hotel, Kempton Park	R140 880
19. Departmental Strategic Planning Session	12 October 2015, Diep in die Berg, Pretoria East, Tshwane	R97 224
20. Departmental Strategic Planning Session	28 October 2015 and 12 November 2015, Diep in Die Berg, Tshwane	R149 838
21. Departmental and Entities Budget Planning Workshop	3 February 2016, Protea Hotel 390 Lilian Ngoyi Street, Tshwane	R20 475
22. Special Advisory Budget Speech Planning And White Paper Workshop	29 March 2016, HDA Offices, Killarney, City of Joburg	None
23. Rectification/Remedial Workshop	11 May 2016, Premier Hotel, OR Tambo International Airport	R22 479
24. Workshop of Senior Management of the Department, Advisors and CEOs of Entities	27 June 2016, Saint Georges Hotel, Irene, Tshwane	R28 354
25. Workshop of Senior Management of the Department, Advisors and CEOs of Entities	28 June 2016 Govan Mbeki House, 240 Justice Mahomed, Street, Sunnyside, Tshwane	R0
26. Departmental Strategic Planning Session	13 July 2016, CSIR, Tshwane	R43 795
27. Sector Stakeholder Planning Workshop	20-21 July 2016, Southern Sun OR Tambo	R131 138
28. Departmental Emerging Risk Workshop	19 August 2016, Govan Mbeki House, 240 Justice Mahomed Street, Sunnyside, Tshwane	R0
29. National Upgrading of Informal Settlements Workshop	19-20 September 2016, George, Western Cape	R85 100
30. Departmental Strategic Planning Session	25 and 26 January 2017, Lombardy Boutique Hotel, Tshwane	R149 970
31. Departmental Strategic Planning Session	20 February 2017, Protea Hotel OR Tambo	R55 280

Reply:

As at the 31 March 2017, the National Department of Human Settlements had no outstanding supplier invoices which remained unpaid for more than 30 days.

Reply:

(1) (a) As at 31 March 2017, the National Department of Human Settlements was not in any legal contractual disputes or litigation processes with any company for their work on departmental projects.

(b), (c) & (d) Fall away.

(2) None.

Reply:

(1) (a) & (b) No.

(2) (a) & (b) No.

Reply:

(a) No.

(b) No.

(c) No.

(d) No.

Reply:

The information provided by the North West Provincial Department of Human Settlements is as follows:

(a) The project commenced in June 2008.

(b) &(c) The progress made in respect of the project in Khudutlou Village is as follows:

• 3 Houses were completed
• 9 Units were at the roof level
• 11 Units were completed up to wall plate level
• 2 Slabs were completed

Due to poor workmanship, construction on the project has been put on hold and the North West Provincial Department of Human Settlements indicated that they are awaiting an engineering report with a view to considering cancellation of the contract.

(d) (i) The cost of the project is R1 282 025 for 25 units.

(ii) The total projected cost is R 2 569 200.

Furthermore, and for the benefit of the Honourable member who has recently joined the Portfolio Committee on Human Settlements, I wish to reiterate what I said during the Policy Debate on the budget of my Department on 12 May 2015 in the NCOP. I indicated,

“We are no longer rectifying houses using our budget. Any house that has defaults is the responsibility of the National Home Builders Registration Council (NHBRC), which is responsible to identify the contractor and ensure that they rectify the shoddy work at their own cost. The money currently used on rectification can and will be used in building more houses”.

Accordingly, I have requested the MEC for Local Government and Human Settlements in North West to provide me with a full report on this matter with a view to ensure that contractor responsible returns on site to undertake remedial work or is blacklisted if found to be in breach of the contractual agreement.

Reply:

The Provincial Departments of Human Settlements provided information as follows:

	Number of houses built 1 April 2011 to 30 September 2016	Number of houses Unoccupied	Number of houses Partially occupied	Period unoccupied/ partially unoccupied
EC	73 207	258	None	Verification is being conducted
FS	34 135	The Provincial Department is in the process of procuring a service provider to conduct an occupancy audit to determine amongst other the occupancy rate	Verification is being conducted	Verification is being conducted
GP	100 223	Verification is being conducted	Verification is being conducted	Verification is being conducted
KZN	140 739	None	Verification is being conducted	Verification is being conducted
LP	45 028	377	0	Not available
MP	42 562	924	0	1 year
NC	13 356	0	0	0
NW	65 081	After completion the structure is the responsibility of the Municipality so the Provincial Human Settlements Department does not have any numbers in this regard	Verification is being conducted	Verification is being conducted
WC	60 082	None	None	None

(c)

Province	Why are houses unoccupied or partially unoccupied?
EC	Due to the unavailability of approved beneficiaries
FS	Verification is being conducted
GP	Not available
KZN	Not applicable
LP	Due to the unavailability of the approve beneficiaries
MP	The Lekwa and Mbombela Municipalities are struggling with the provision of bulk (sewer and water) infrastructure
NC	Not applicable
NW	Not applicable
WC	Not applicable

(d)

Province	Cost to build houses
EC	R42.5 million
FS	Verification is being conducted
GP	Verification is being conducted
KZN	Verification is being conducted
LP	Verification is being conducted
MP	R 93 million has been spent to build the 924 houses
NC	All houses are built according to the subsidy quantum band approved for that specific financial year
NW	Not applicable
WC	Not applicable

(e)

Province	Plans to address non-occupation
EC	Names of beneficiaries will be advertised in local media and if still unavailable, the beneficiaries will be deregistered on HSS and replace with beneficiaries from destitute list
FS	The department is in the process of procuring a Service Provider to conduct an occupancy audit in the Province.
GP	Not available
KZN	Not applicable
LP	The Provincial Human Settlements Department is using Ward Committees to trace beneficiaries and advertise in the print media calling beneficiary to claim their house.
MP	The Department has timeously been working with the respective Municipalities to resolve the matter of bulk infrastructure. The Department made R 9 million available from their equitable share to assist Lekwa Municipality with the construction of two sewer pump stations to address the bulk sewer problem in Standerton Ext 8. In terms of the Mbombela Municipality the Department has transferred R 80 million from the equitable share to deal with the bulk issues in Thekwane North and other integrated human settlement projects.
NC	At completion of a house the contractor hands the house over to the beneficiary who then signs a happy letter with occupation
NW	Not applicable
WC	Not applicable

Reply:

The Department has over the last three financial years received an unqualified audit opinion with a number of emphasis’ of matter. For the 2013/14 financial year the Department emphasis of matter related to:

• Material underspending of R75.4 million (85%) within Programme 3 in respect of Programme Implementation; and
• Material underspending of R25 million (19%) on the Rural Household Infrastructure Grant.
• The department only transferred R106.7 million of the Rural Household Infrastructure Grant in March 2014. A significant portion of this grant was unspent as of 31 March 2014.

For the 2014/15 financial year the Department materially underspent by R49.8 million (29.5%) still within Programme 3: Programme Delivery Support and related to the National Upgrading Support Programme.

For the 2015/16 financial year the Department again received an unqualified audit opinion with an emphasis of matter on material underspending of R45.8 million (27.5%) within Programme 3: Human Settlements Delivery Support which was also related to the National Upgrading Support Programme.

It is important to indicate that the Rural Household Infrastructure Grant was a programme transferred from the then Department of Water Affairs to the Department of Human Settlements during the 2010/11 financial year. The grant funded household infrastructure for provision of sanitation in rural areas for on-site water and sanitation solutions. For the 2013/14 financial the grant was split into an indirect and a direct grant.

As an indirect grant the Department had to appoint service providers. For the 2013/14 financial year the contractors only submitted invoices for work performed at the end of the financial year which were paid for. The appointed contractors could not finalise the implementation of programme on time due to rock formations that delayed work in the affected municipal areas.

The grant and the sanitation function was however transferred back to the newly created Department of Water and Sanitation during the 2014/15 financial year, the controls that were put in place could not be implemented due to the transfer.

The National Upgrading Support Programme is a departmental programme that provides technical assistance to municipalities to develop upgrading strategies, categorize informal settlements and is one of the largest cost drivers within Programme 3 and the biggest contributor to the underspending in the 2015/16 financial year. The National Upgrading Support Programme promotes improved human settlements outcomes in informal settlements through the progressive implementation of the programme in 53 municipalities per year. One of the reasons for under performance was the late approval of plans by municipalities.

Measures taken to ensure that underspending within programme 3 does not recur:

• An implementation plan detailing the methodology in monitoring the performance of the programme in terms of orders issued and progress on work performed has been developed by the Department. The project managers appointed have been put into place to manage the project implementation plans.
• Additional capacity has been appointed to assist with the implementation of the programme.
• This will allow detection of risks on time to assist and timely intervention.
• Monthly progress reports are prepared to update management structures.

Reply:

(1) (a) There are 101 public sector owned hostels in the country. This excludes hostels which are privately owned but located on land which belongs to government or vice versa as well as hostels currently in the process of being negotiated to be donated by the private sector and/or being transferred to Government.

(b) (i) Of the 101 public sector owned 49 hostels still have to be renovated.

(ii) Of the 101 public sector owned 52 hostels have been renovated.

(c) The total cost of hostel renovations and/or refurbishment to date is R2 898 174 412.40.

(2) (a) The Department in conjunction with provinces and municipalities has put in place a strategy which will ensure that all public sector hostels are integrated in the overall Provincial and Municipal Human Settlements Development plans. These include redevelopment and/or refurbishment and/or relocation of residents out of hostels into affordable rental and/or fully subsidised housing.

However, the implementation of the plans spans over multiple financial years due to the large number of persons and/or households which must be catered for and, the budgetary limitations. The aim is to transform the hostel environment into a family environment.

(b) A total of eight (8) hostels have been planned for renovation by the Provinces during 2016/17 financial year and work has commenced on the aforementioned hostels

(c) A total of R851 850 727.00 has been budgeted for the redevelopment and/or renovation of these hostels.

Reply:

(a) & (b) Yes.

(i) & (ii) The relevant information is provided below.

2009/ 10

No.	Name	Subject Matter	Date of Conclusion
1	Presidential Proclamation R.7 of 2007 (extended by R.35 of 2010 and R.15 of 2012)	Alleged fraudulent/ illegal granting of low-income housing to government officials/ employees (National, Provincial & Local spheres)	January 2014
2	Presidential Proclamation R.7 of 2007 (extended by R.35 of 2010 and R.15 of 2012)	Alleged awarding and implementation of housing contracts in non-compliance with the Housing Act (No. 107 of 1997); National Housing Code and Public Finance Management Act (No. 1 of 1999)	Once the SIU investigations are finalised, reports are filed with The Presidency and therefore the Department does not have the exact completion date.
2010/ 11
	Name	Subject Matter	Date of Conclusion
3	Presidential Proclamation R.7 of 2007 (extended by R.35 of 2010 and R.15 of 2012)	Alleged fraudulent/ illegal granting of low-income housing to government officials/ employees (National, Provincial & Local spheres)	January 2014
4	Presidential Proclamation R.7 of 2007 (extended by R.35 of 2010 and R.15 of 2012)	Investigation into awarding and implementation of housing contracts in non-compliance with the Housing Act (No. 107 of 1997); National Housing Code and Public Finance Management Act (No. 1 of 1999)	Once the SIU investigations are finalised, reports are filed with The Presidency and therefore the Department does not have the exact completion date.
2011/ 12
	Name	Subject Matter	Date of Conclusion
5	Presidential Proclamation R.7 of 2007 (extended by R.35 of 2010 and R.15 of 2012)	Alleged fraudulent/ illegal granting of low-income housing subsidy to government officials/ employees (National, Provincial & Local spheres)	January 2014
6	Presidential Proclamation R.7 of 2007 (extended by R.35 of 2010 and R.15 of 2012)	Alleged awarding and implementation of housing contracts in non-compliance with the Housing Act (No. 107 of 1997); National Housing Code and Public Finance Management Act (No. 1 of 1999)	Once the SIU investigations are finalised, reports are filed with The Presidency and therefore the Department does not have the exact completion date.
7	SIU investigation into the affairs of the National Housing Builders Registration Council	Alleged conflict of interest over contracts worth at least R100m	Once the SIU investigations are finalised, reports are filed with The Presidency and therefore the Department does not have the exact completion date.
8	Presidential Proclamation R.7 of 2007 (extended by R.35 of 2010 and R.15 of 2012)	Alleged fraudulent/ illegal granting of subsidy to government officials/ employees (National, Provincial & Local spheres)	January 2014
9	Presidential Proclamation R.7 of 2007 (extended by R.35 of 2010 and R.15 of 2012)	Alleged awarding and implementation of housing contracts in non-compliance with the Housing Act (No. 107 of 1997); National Housing Code and Public Finance Management Act (No. 1 of 1999)	Once the SIU investigations are finalised, reports are filed with The Presidency and therefore the Department does not have the exact completion date.
2013/ 14
	Name	Subject Matter	Date of Conclusion
10	Presidential Proclamation R.7 of 2007 (extended by R.35 of 2010 and R.15 of 2012)	Alleged fraudulent/ illegal granting of subsidy to government officials/ employees (National, Provincial & Local spheres)	January 2014
11	Presidential Proclamation R.7 of 2007 (extended by R.35 of 2010 and R.15 of 2012)	Alleged awarding and implementation of housing contracts in non-compliance with the Housing Act (No. 107 of 1997); National Housing Code and Public Finance Management Act (No. 1 of 1999)	Once the SIU investigations are finalised, reports are filed with The Presidency and therefore the Department does not have the exact completion date.
2014/ 15
	Name	Subject Matter	Date of Conclusion
12	Presidential Proclamation R.7 of 2007 (extended by R.35 of 2010 and R.15 of 2012)	Alleged awarding and implementation of housing contracts in non-compliance with the Housing Act (No. 107 of 1997); National Housing Code and Public Finance Management Act (No. 1 of 1999)	Once the SIU investigations are finalised, reports are filed with The Presidency and therefore the Department does not have the exact completion date.
2015/ 16
	Name	Subject Matter	Date of Conclusion
13	Presidential Proclamation R.7 of 2007 (extended by R.35 of 2010 and R.15 of 2012)	Alleged awarding and implementation of housing contracts in non-compliance with the Housing Act (No. 107 of 1997); National Housing Code and Public Finance Management Act (No. 1 of 1999)	Once the SIU investigations are finalised, reports are filed with The Presidency and therefore the Department does not have the exact completion date.
2016/ 17
	Name	Subject Matter	Date of Conclusion
14	Presidential Proclamation R.7 of 2007 (extended by R.35 of 2010 and R.15 of 2012)	Alleged awarding and implementation of housing contracts in non-compliance with the Housing Act (No. 107 of 1997); National Housing Code and Public Finance Management Act (No. 1 of 1999)	Once the SIU investigations are finalised, reports are filed with The Presidency and therefore the Department does not have the exact completion date.

 

Reply:

The Metropolitan Municipalities have reported as follows:

(a) Between 1 April and 30 June 2016 Nelson Mandela Bay Metropolitan Municipality handed over a total of 225 title deeds.

(b) Between 1 April and 30 June 2016 Mangaung Metropolitan Municipality handed over a total of 1 003 title deeds.

(c) Between 1 April and 30 September 2016 the City of Cape Town Metropolitan Municipality handed over a total of 1 062 title deeds.

(d) Buffalo City, Ekurhuleni, City of Johannesburg, Tshwane and Ethekwini Metropolitan Municipalities are verifying their information and once the process has been completed, the Honourable member will be provided with the required information.

Reply:

In terms of the Community Residential Units (CRU) Programme, accommodation is provided to low-income households that earn a gross income of between R800 and R3 500 per month. All the funding related to this programme is allocated to the provinces and these provinces, municipalities or social housing institutions are responsible for the management of the units, including ensuring that the appropriate beneficiaries gain access to the rental units. Social facilitators can be appointed to determine the employment status of each hostel dweller in order to ensure proper unit allocation based on their affordability level. A portion of the funding provided to provinces is used for the compilation of 5 year provincial rental housing strategies which are demand and needs driven and which inform the Departments’ annual allocations.

Reply:

The North West Provincial Department of Human Settlements has advised that a contractor was appointed to complete the BNG houses in Ikageng Extension 11. To date, 36 houses have been completed by the contractor and it is expected that the remaining 24 houses will be completed by the end of November 2016.

Reply:

(1) (a) The current costs for constructing a house for a military veteran, as per the agreed minimum norms and standards with the Department of Military Veterans, has been set at R 188 884,00. Of this amount, the Department of Human Settlements is responsible for the normal housing subsidy amount of R 110 947,00 whilst the Department of Military Veterans is responsible for the top-up amount of R78 000,00.

(b) In 2012 the Departments of Human Settlements and Military Veterans signed a Memorandum of Understanding (MOU) to guide roles, responsibilities and accountability of all the parties, in the process of providing adequate housing to military veterans. This MOU provides the framework regarding the obligations of the two Departments as well as for the Provincial Departments of Human Settlements and municipalities in the delivery of housing units for qualifying military veterans.

It includes an agreement that the Human Settlements Development Grant shall only fund the standard subsidy house cost and any residual amount required to achieve the higher specification house required by the Department of Military Veterans shall be funded by them as pointed out in paragraph (1) (a) above.

In terms of this MOU, the nine Provincial Human Settlements Departments are mandated to conclude Service Level Agreements with the Department of Military Veterans. These Service Level Agreements are to be based on the delivery targets set by the Department of Military Veterans.

(2) (a) In terms of the Memorandum of Understanding, construction of all housing units for military veterans should follow the agreed process as outlined above.

(b) Similarly, the cost break down as outlined must be complied with by all parties.

Reply:

(i)​Africa News Network 7 Channel:

(a) Department of Human Settlements

	(aaa) 2015-2016	(bbb) since 1 April 2016
Human Settlements	R000.000	R000.000
TOTAL	NIL	NIL

 

 (b) Entities

	(aaa) 2015-2016	(bbb) since 1 April 2016
EAAB	NIL	NIL
HDA	NIL	NIL
NURCHA	NIL	NIL
NHFC	NIL	NIL
RHLF	NIL	NIL
CSOS	NIL	NIL
NHBRC	NIL	NIL
SHRA	NIL	NIL

 

(ii)​SABC Television

Department of Human Settlements

	(aaa) 2015-2016	(bbb) since 1 April 2016
Human Settlements	NIL	NIL

 

 Entities

	(aaa) 2015-2016	(bbb) since 1 April 2016
HDA	NIL	NIL
NURCHA	NIL	NIL
NHFC	NIL	NIL
RHLF	NIL	NIL
CSOS	NIL	NIL
NHBRC	NIL	R1 193 607.36
SHRA	NIL	NIL
TOTAL	NIL	R1 193 607.36

 

(bb)​SABC Radio:

Department of Human Settlements: 

	(aaa) 2015-2016	(bbb) since 1 April 2016
Human Settlements	NIL	Umhlobo  Wenene FM Willowdene Project launch2016 R64 685.88   Umhlobo Wenene FM National intervention into Nelson Mandela Bay R300 719.00

​Entities

	(aaa) 2015-2016	(bbb) since 1 April 2016
HDA	NIL	Umhlobo Wenene FM R300 719.00
NURCHA	NIL	Ukhozi FM and Thobela FM R 64,432.80
NHFC	NIL	NIL
RALF	NIL	NIL
CSOS	NIL	NIL
NHBRC	R969 046.74	R 2 315 789.64
SHRA	NIL	NIL

 

(iii)​National Commercial Radio Stations:

Department of Human Settlements

	(aaa) 2015-2016	(bbb) since 1 April 2016
Human Settlements		Talk  Radio 702 4.3 Million housing opportunities R692 648.00   SA FM 4.3 Million housing opportunities R132 750.00   Metro FM 4.3 Million housing opportunities R336 200.00

 

Entities

	(aaa) 2015-2016	(bbb) since 1 April 2016
EAAB	NIL	NIL
HDA	NIL	NIL
NURCHA	NIL	NIL
NHFC	NIL	NIL
RALF	NIL	NIL
CSOS	NIL	NIL
NHBRC	NIL	NIL
SHRA	NIL	NIL

(iv)​Community:

(aa)​Television

 ​DHS

	(aaa) 2015-2016	(bbb) since 1 April 2016
Human Settlements	NIL

Entities

	(aaa) 2015-2016	(bbb) since 1 April 2016
EAAB	NIL	NIL
HDA	NIL	NIL
NURCHA	NIL	NIL
NHFC	NIL	NIL
RALF	NIL	NIL
CSOS	NIL	NIL
NHBRC	NIL	NIL
SHRA	NIL	NIL

(bb)​Radio Stations:

​DHS

	(aaa) 2015-2016	(bbb) since 1 April 2016
Human Settlements	Campus Bay FM Communication and Marketing areas for rapid response R29 800.00   Kingfisher FM Communication and Marketing areas for rapid response R29 800.00   Campus Bay FM Communication and Marketing areas for rapid response R6000.00   Radio Zibonele N2 Gateway handover R12 000.00	UMgungundlovu FM Presidential Imbizo on rural housing programme-KZN R48 900.00       Nkqubela FM National intervention into Nelson Mandela Bay Campaign R30 840.00

Entities

	(aaa) 2015-2016	(bbb) since 1 April 2016
HDA	Bay FM and Nkqubela FM	R104124.00
NURCHA	OFM	R5,694.30
NHFC	NIL	NIL
RALF	NIL	NIL
CSOS	NIL	NIL
NHBRC	R248 195.72	R102 935.00
SHRA	NIL	NIL

Reply:

The Housing Act, 1997, prohibits the sale of government subsidised houses within eight years and budgeting for such expenditure would therefore be illegal in terms of both the Housing Act and the Public Finance Management Act (PFMA). Therefore, the answer to the Honourable member’s question is a resounding no.

Specifically, Section 10A of the Housing Act, 1997 (Act No. 107 of 1997) on Restriction on voluntary sale of state-subsidised housing states that, “Notwithstanding any provisions to the contrary in any other law, it shall be a condition of every housing subsidy, as defined in the Code, granted to a natural person in terms of any national housing programme for the construction or purchase of a dwelling or serviced site, that such person shall not sell or otherwise alienate his or her dwelling or site within a period of eight years from the date on which the property was acquired by that person unless the dwelling or site has first been offered to the relevant provincial housing department”.

The provision of houses is intended to provide beneficiaries with self-respect, dignity and it is viewed as a life opportunity for the less privileged South Africans to own an asset in the form of a house, hence the selling of state subsidised houses is not encouraged at all unless their economic situation has improved for the better.

In addition, the Department is engaged in consumer education programme to further inform and educate the consumers on the policy and legislative provisions applicable to the housing subsidy programme.

Reply:

Honourable Member, the appointment of Directors-General and the minimum requirements thereof are found in the EXECUTIVE PROTOCOL (the Protocol): PRINCIPLES AND PROCEDURES FOR THE EMPLOYMENT OF HEADS OF DEPARTMENT (HODs) AND DEPUTY DIRECTORS- GENERAL (DDGs). The purpose of the Protocol is to encourage good practice in the recruitment of Heads of Department (HoDs) and Deputy Directors-General (DDGs) nationally, thereby assisting Executive Authorities (EAs) in appointing high quality candidates.

I can assure the Honourable Member that when Cabinet appointed the Director-General of Human Settlements, it adhered to this Protocol, which I was responsible for tabling before Cabinet when I served in the Public Service and Administration portfolio. The Director-General is more than qualified for his post.

In summary, the protocol stipulates that:

“An advertisement should not favour or prejudice any prospective candidate who has the necessary training, skills, competence and/or knowledge relevant to the requirements of the post. Advertisements should therefore be supportive of and in compliance with the Constitution, the Labour Relations Act, the Public Service Act and the PSR. Qualifications should not be defined primarily or solely in terms of educational attainment, but should include skills, relevant experience and other criteria. Educational qualification requirements, including qualifications obtained through the Recognition of Prior Learning process and linked to the National Qualification Framework, should as per the post advertisement reflect the minimum qualification requirements determined during job evaluation. Such qualification requirements should be specific to the post. An applicant with a lower qualification cannot be shortlisted for the post”.

In respect of the Chief Financial Officer (CFO), the National Treasury continues to ensure that CFO’s possess formal qualifications comprising relevant subjects such as Financial Accounting (for the timely production of accurate and complete financial information), Management Accounting (for sound budgeting and expenditure monitoring practices), Internal Audit (for the operation of sound internal controls) and Supply Chain Management (for the efficient procurement of goods, works and/or services)”. Again, I wish to indicate that my Chief Financial Officer possess formal qualifications that include all these subjects.

Honourable Member, this goes to show that although we are cognisant that the black communities of this country were deliberately denied the same education as their white counterparts had, we are committed to ensure that we employ competent civil servants in the public service. I wish to confirm that Director-General and the Chief Financial officer of my Department have Master’s Degree in fields relevant to their work.

Reply:

(1) Yes indeed Honourable member, my Director-General did sign a performance agreement with me in accordance with the applicable prescripts.

(2) Falls away.

(3) Falls away.

 

Reply:

I am not certain what the Honourable member is trying to achieve with this question. I am on record on this matter disapproving of any plans to continue with rectification, it is undesirable. I wish to reiterate what I said during the Policy Debate on the budget of my Department on 12 May 2015 in the NCOP. I indicated,

“We are no longer rectifying houses using our budget. Any house that has defaults is the responsibility of the NHBRC, which is responsible to identify the contractor and ensure that they rectify the shoddy work at their own cost. The money currently used on rectification can and will be used in building more houses”.

Honourable member, I want to unequivocally state that it is now policy that my Department will no longer rectify any houses using its funds. A directive in this regard was issued in 2015 to all Provincial Human Settlements Departments that no funding from the Human Settlements Development Grant may be utilised for rectification.

Otherwise, where and when rectification took place, it would have been reported on in previous annual reports and I would suggest that the Honourable member consult these reports for information dating back to 2012.

Reply:

(a) (i) (aa) The development programmes for small businesses are developed and implemented by the Provinces.

(bb) The Department does not necessarily have a line item specifically for small businesses. However, we support small businesses when procuring goods and services. Accordingly, in my reply to question 370, I indicated that for the period 01 April 2015 to 31 March 2016, the total percentage spent by the National Department of Human Settlements for procurement from Small, Medium and Micro-sized Enterprises (SMMEs) was 32%.

(cc) We are unable to quantify jobs that will be created or saved through our support for small businesses at this stage.

(ii) (aa) The Department is promoting and supporting the establishment of Cooperatives within the human settlements delivery chain. To this end, the Department (through People’s Housing Process Directorate) has partnered with the Department of Small Business Development (DSBD) and the following has been achieved:

• Approximately 65 different Cooperatives have been established in six (6) Provinces, namely KZN, Gauteng, Free State, North West, Western Cape and the Eastern Cape
• Housing or human settlements Cooperatives serves as a catalyst for the establishment of other Cooperatives. The housing Cooperatives ranges from Construction Cooperatives, brick-making, window/door frame making Cooperatives, carpentry, plumbing, transport, electricity, painting etc.
• Other livelihood Cooperatives formed will focus on agriculture, sewing, catering, poultry, shoe-making etc.
• Most of these Cooperatives are led by Women and Youth and there is one Cooperative established in the Free State led by Disabled people
• A Military Veterans Cooperative called Matrosov was also established in the Eastern Cape for the Chatty 491 project in Port Elizabeth
• Delivered pre-formation and Cooperatives workshops in the six (6) Provinces
• Assessed the state of readiness for the Cooperatives Incentive Scheme (CIS) registration application for registered Cooperatives in KZN and Free State. The main objective of the CIS registration is to enable the Cooperatives to access grant funding from the DSBD as part of the start-up capital
• In partnership with DSBD, delivered CIS workshop to the registered Cooperatives in the Free State who have now applied for the CIS Grant from DSBD
• Through the partnership with DSBD, a project will be identified as a pilot under the new Cooperatives Incubator Programme led by DSBD
• The Department will be sourcing Training and Skills development initiatives for the registered Cooperatives through NHBRC, SEDA and other similar institutions

(bb) We do not have a line item on cooperatives but we support them because they are crucial for the development of sustainable human settlements.

(cc) The information is being collated and will be verified once obtained. However, in respect of the Vulindela PHP Project, in Pietermaritzburg, jobs were created and skills developed as follows:

• Two-thousand and three hundred (2 300) full-time employment opportunities created for previously unemployed community members.
• Thirteen (13) community owned Cooperatives created and one hundred and thirty (130) community members exist
• There is on site skills transfer during the construction programme
• Thirty-five (35) members from the various Cooperatives were trained on different construction management portfolios facilitated by the Provincial Capacity Building Directorate. This course was undertaken during August/September 2013 over twelve (12) days and they received NQF Level 2 certificate. The graduates comprised of fourteen (14) Females and twenty-one (21) Males of which 9 were the Youth.

(b) Human settlements public entities

1. National Housing Finance Corporation

(i&ii)(aa) In line with the NHFC Annual Performance Plan for 2016/17 and through its financing and leveraging activities for residential developments, the entity budgeted towards the financing of women, and emerging black entrepreneurs.

(i&ii)(bb) R376 million.

(i&ii)(cc) It is anticipated that the amount disbursed will facilitate an estimated 4 184 jobs.

2. Rural Housing Loan fund

(i&ii)(aa) As part of its efforts to expand the reach of its lending programme to small business owners, the Rural Housing Loan Fund engages with co-operatives and the Co-Operative Banks Development Agency, with a view to lending to these organisations. Currently a few of these are under consideration for loans, while some are already borrowing from the entity. There is however a restriction on the amount that co-operative banks may borrow - their borrowing should not be more than 15% of their total assets. This means, for example, if the Small Enterprise Finance Agency (SEFA) has a loan in place, RHLF is usually unable to provide funds until that loan is repaid. This limits it to ensure the security of the members’ deposits. However, the downside of the restriction is that it limits the growth of financial cooperatives.

(i&ii)(bb) As this forms part of RHLF’s core business, no separate budget is set aside for this.

(i&ii)(cc) The number of jobs that will be created are dependent upon the success of the new lenders. This is dependent upon their target market, their marketing strategy and general economic conditions. Due to the vast number of variables over which RHLF has no control, RHLF considers it imprudent to guess the number of jobs that may be created.

3. Social Housing Regulatory Authority

(i&ii)(aa) The SHRA has an institutional investment grant programme assisting potential and accredited Social Housing Institutions and Co-operatives in terms of the Capacitation Programme of the SHRA.  The grant programme makes provisions for dedicated assistance, skills development and transfer as well as training related to the successful implementation and management of social housing.

A separate programme will be developed to assist potential new SHI’s and Co-operatives interested in social housing to receive the required assistance, training, knowledge and skills to become accredited while the SHRA is also working on a programme to deal with the improvement of the accreditation status of conditionally accredited institutions to become fully accredited.

(i&ii)(bb) A national training programme at a cost of approximately R1 million has been developed on areas of governance, property and tenant management, property development and financial management and training workshops for SHI’s and Co-operatives are scheduled on a national basis in July and August 2016 such that these institutions may receive appropriate training and skills to be able to become accredited and develop and manage social housing projects/estates.

Since proper business planning is a key component for successful business the grant programme will during this financial year also provide dedicated on-site assistance to SHI’s and Co-operatives to development their strategic and business plans such that sustainable delivery agents may be facilitated for the social housing programme.  Current business plans have been assessed in terms of the accreditation process to ensure that the assistance to respective institutions would be appropriate to their specific needs and requirements.  In this regard this programme provides for such assistance to in excess of 50 institutions on a national basis with a total cost of approximately R5 million.

(i&ii)(cc) The number of jobs to be created as a result of these initiatives have not been determined although it is intended to undertake research on the creation of job opportunities such that these may be appropriately measured going forward.  This also relates to job opportunities for women and youth and developing specific programmes for these to ensure that the results to be achieved are defined and then provide for proper measurement, monitoring and evaluation going forward.

4 Estate Agency Affairs Board

(i&ii)(aa) The One Learner One Estate Agency Youth Brigade Development Programme seeks to recruit unemployed Matric and Graduates and place them with Estate Agencies. They will complete the NQF Level 4 qualification training over a 12 months period. This will consist of 30% class-room activities and 70% on the job training. On completion of the 12 months training they will become qualified Estate Agents. The learners need to complete the NQF Level 5 in Real Estate at the employ of an Estate Agency. On completed of the NQF Level 5 qualification they will then be Principal where they can then own their own Real Estate Agency. This will enable them to sell and rent properties on behalf of a third party where they can earn commission on the successful completion of the transaction. The Estate Agency Affairs Board will assist these Estate Agents to nurture their Real Estate Agencies to grow and be a success.

(i&ii)(bb) Funding from the SSETA is R110 million over a period of 3 years.

(i&ii)(cc) It is estimated that 12 000 jobs will be created in the 2016/17 financial period.

5. National Urban Reconstruction and Housing Agency

(i&ii)(aa) The National Urban Reconstruction and Housing Agency assists small businesses and co-operatives through the lending services offered by the Subsidy Housing and Affordable Housing Programme.

(i&ii)(bb) The budgeted loan amount for the Subsidy Housing Programme is R158 million. The budgeted loan amount for the Affordable Housing Programme for emerging contractors is R91.5 million.

(i&ii)(cc) The projected number of jobs to be created through the Subsidy Housing Programme is 2 456. The projected number of jobs to be created through the Affordable Housing Programme for emerging contractors is 744.

6. National Home Builders Registration Council

(i&ii)(aa) The NHBRC is currently finalising its Social Transformation strategy. This strategy will be implemented in the 2016/17 financial year.

7. Housing Development Agency

(i&ii)(aa) The Housing Development Agency (HDA) is currently not running any development programmes. However, the HDA contributes towards the development of business through the reservation and allocation of 30% of our housing infrastructure development to local business and labour. The HDA does this through projects and initiatives which the HDA is managing on behalf of the provinces/municipalities.

8. Community Schemes Ombud Services

(i&ii)(aa) The Community Schemes Ombud Service (CSOS) does not run development programmes for small business and co-operatives. The CSOS is still new and not fully operational. Currently there are budget constraints. The development programmes will be considered as soon as the CSOS becomes financially viable and sustainable.

Reply:

(1) The National Housing Code contains a comprehensive set of guidelines for the upgrading and development of informal settlements. The guidelines assist human settlements and housing practitioners in planning, funding and implementation of the approved informal settlements upgrading policy and programme. It is to be noted that the guidelines contained in the National Housing Code have been bench-marked and aligned to international good practice and that component parts of the South Africa policy, funding and implementation good practice, have been incorporated into international and national country policies and programmes.

In terms of the Upgrading of Informal Settlements Programme (UISP), informal settlement upgrading should be undertaken in phases, with Phases 1 to 3 focusing on community participation, supply of basic services and security for all residents. The priority is to address issues of household health and safety including the provision of interim services as a minimum norm and standard, in the form of reasonable access to water, sanitation, storm water management and road access to households. The current upgrading approach is incremental and infrastructure-led, and recognises that meaningful developmental improvements need to be provided to all informal settlements as rapidly as possible. Upon a settlement having been formalised in the form of planning and tenure security, services and homes are built for qualifying beneficiaries. The upgrading of a specific informal settlement takes place over a multi-year period, and is dependent on a number of factors including stipulated time periods required in the town planning process, applicable specialist studies including environment impact assessments, ecological, heritage, soil, vegetation and geotechnical studies. One of the major time delays are objections to the upgrading of informal settlements when they are situated adjacent to established townships.

(2) The National Housing Code: Upgrading of Informal Settlements Programme systematically details the process and procedure for the in situ upgrading of informal settlements in a structured manner. The key principles to be followed by implementers of the Programme are specified, including,

Community Engagement by their local authorities is of the utmost importance to ensure locally appropriate solutions. A feasibility study is to be conducted on the upgradeability of the settlement, and households must be profiled to determine beneficiaries. Detailed settlement level plans are to be development with the participation of the community;

Tenure: The Programme promotes security of tenure as the foundation for future individual and public investment. A check is done on land ownership to ensure security of tenure;

Suitable land: The programme will only provide funding in respect of informal settlements situated on land suitable for permanent residential development and within an approved IDP of the municipality concerned.

Service standards: The Programme provides funding for the installation of interim and permanent municipal engineering services. Where interim services are to be provided it must always be undertaken on the basis that such interim services constitute the first phase of the provision of permanent services. The nature and level of permanent engineering infrastructure must be the subject of engagement between the local authority and residents. Community needs must be balanced with community preferences, affordability indicators and sound engineering practice;

(3) (a) (i) (aa) During 2012-13 a total of 203 informal settlements were upgraded;

(bb) During 2013-14 a total of 113 informal settlements were upgraded;

(cc) During 2014-15 a total of 127 informal settlements were upgraded;

(dd) During 2015-16 a total of 95 informal settlements were upgraded;

(ii) Since 1 April 2016, 17 informal settlements were upgraded.

(b) to (d) We do report on project developments undertaken in our annual report and I would suggest that the Honourable member consult these reports for information dating back to 2012.

In addition, I wish to remind the Honourable member that during my budget Vote speech in the National Assembly on 3 May 2016, I indicated that urbanisation and the resultant mushrooming of informal settlements is something we are grappling with. I specifically said,

“Last month we had the honour of hosting an International UN conference, in preparation for the Third UN Habitat Conference – a world conference that takes place every 20 years and which will now take place in Quito, Ecuador in October. We had 512 delegates from 54 different countries, and representatives of 54 governments, including 14 Ministers of Housing and we were given the opportunity to shape and influence the future of international human settlement discourse and subsequent policy and practice. The theme of the conference was “Urbanization and Informal Settlements”. This was our choice as host country. We chose it because that is our present and pressing challenge with many of our people still living in squalor in places such as Khayelitsha, Gugulethu, Nyanga, Philippi, Soweto, Orange Farm, Polokwane, Mahikeng, Tshwane, eMlazi and all whom we dedicate today. The conference grappled with the staggering figures presented”.

Despite all the challenges we are faced with, South Africa is counted among the countries that have made significant contributions to improving the lives of those living in informal settlements, and we will continue to do so.

In the recent StatsSA survey, released in March, it is confirmed that amid growing urbanisation, the percentage of people living in informal settlements has dropped from 17% in 2002 to 11% in 2014.

Reply:

(1) No.

(2) No.

Reply:

(a) (i) The national department of Human Settlement spent R 2,941,920.20 for advertising in the 2015-16 financial year.

Entities spend on advertising in the 2015-16 financial year

(a)(ii) 1. The EAAB spent R1, 172,583.00.

2. The HDA spent R1, 200, 209.39.

3. The NURCHA spent R178, 478.07.

4. The SHRA spent R189, 017.65.

5. The NHBRC spent R7,700,000.00.

6. The NHFC spent R433 975.00.

7. The RHLF spent R197, 280.29.

8. The CSOS spent R225, 000.00.

(b) (i) The department has budgeted for R1, 5 million in the 2016-17 financial year.

(b)(ii) Entities

1. The EAAB budgeted for R135,367.00 for advertising in the 2016-17 financial year.

2. The HDA budgeted for R1, 311, 886.60 for advertising in the 2016-17 financial year.

3. The NURCHA budgeted for R 400 000.00 for advertising in the 2016-17 financial year.

4. The SHRA budgeted for R1, 6 000.00 for advertising in the 2016-17 financial year.

5. The NHBRC budgeted for R30, 000, 000.00 for advertising in the 2016-17 financial year.

6. The NHFC budgeted for R500 00.00 for advertising in the 2016-17 financial year.

7. The RHLF budgeted for R210 000.00 for advertising in the 2016-17 financial year.

8. The CSOS budgeted for R0.00 for advertising in the 2016-17 financial year.

Reply:

(a) Yes, plans have been put in place to formally house the residents of the Kya Sands Informal Settlement. Due to the dense nature of the informal settlement, there is not enough land surrounding the area to formalise the project in situ. As a result, it was proposed that the project be developed in conjunction with the Lion Park Project further north, near the Lanseria Airport. The concept envisaged was that the Nietgedacht Property on which the Lion Park Project would be located would be formalized first due to the fact that the density is lower and it is envisaged that some of the residents of Kya Sands will then be relocated to the Lion Park Project. The remaining Kya Sands informal settlements residents would be formalized in situ. It should be noted that because of the high housing demand, both projects would be developed as high density housing and as such incremental formalization is not possible.

(b) A total of 13 000 beneficiaries have been identified and the scope of the project was increased to include all the informal settlements on Malibongwe Drive, between Kya Sands and Lanseria. 8 000 beneficiaries will be accommodated at the Lion Park development and 5 000 beneficiaries will be accommodated at the Kya Sands site. Beneficiaries from Lanseria/Freeway, Lanseria/Lion Park, Lanseria/Selina Park, Sands/iNanda Holding 57, Houtkoppen, Plot 5 Riverbed and Malatje informal settlements will be accommodated at the two developments.

(c) The planning process is currently underway and indications are that the development will commence during 2019/2020 financial year.

Reply:

(1) Five thousand four hundred and sixty five (5 465) houses in the Nelson Mandela Metropolitan Municipality in the Eastern Cape require rectification.

(2) (a)(i)(aa) to (cc) From 2011 to 2014 a total of 28 261 housing units were rectified by the Provincial Department and/or Nelson Mandela Metropolitan Municipality;

(dd) In 2014/15, a total number of 2 048 units were rectified by the Provincial Department and/or Nelson Mandela Metropolitan Municipality;

(ii) Since 1st April 2015, a total of 1 561units were rectified; and

(b) As far as rectification is concerned, it is now policy that my Department will no longer rectify any houses using its funds. A directive in this regard was issued in 2015 to all Provincial Human Settlements Departments that no funding from the Human Settlements Development Grant may be utilised for rectification. Where defects and poor workmanship are identified, they remain the responsibility of the Province, Municipality and/or the Developer to take relevant remedial action against the contractor and enforce repairs at the cost of the contractor or developer.

The Honourable member is also referred my speech to the National Council of Provinces (NCOP) on 12 May 2015 during the Policy Debate on the budget of my Department. I indicated,

“We are no longer rectifying houses using our budget. Any house that has defaults is the responsibility of the NHBRC, which is responsible to identify the contractor and ensure that they rectify the shoddy work at their own cost. The money currently used on rectification can and will be used in building more houses”.

In order to limit the need to rectify houses, Government established the National Home Builders Registration (NHBRC). Its mandate is to ensure that all contractors who undertake the construction of a subsidised house are registered with the NHBRC and the requirement for registration, amongst others, is that they comply with all minimum norms and standards and expertise to construct a house.

In addition, the National Department conducts structured project-level monitoring on a quarterly basis in all nine Provinces for verification of delivery. During these, the quality of construction is also observed and reported. I also recently met with contractors involved in the housing subsidy market to address challenges and to emphasize amongst other the importance of quality workmanship.

Reply:

(1) The Nelson Mandela Bay Metropolitan Municipality constructed 1219 new houses, serviced 139 stands with water and sanitation and rectified 1561 houses during the 2015/16 financial year.

As far as rectification is concerned, it is now policy that my Department will no longer rectify any houses using its funds. A directive in this regard as been issued to all Provincial Human Settlements Departments that no funding from the Human Settlements Development Grant may be utilised for rectification. Any house that has defaults is the responsibility of the National Home Builders Registration Council (NHBRC), which is responsible to identify the contractor and ensure that they rectify the shoddy work at their own cost.

(a) 198 houses/units were built during the second quarter of 2015/16 financial year in the Nelson Mandela Bay Metropolitan Municipality, Eastern Cape.

(b) 215 houses/units were built during the third quarter of 2015/16 financial year in the Nelson Mandela Bay Metropolitan Municipality, Eastern Cape.

(2) An additional R500m was allocated to the Eastern Cape Provinces by the National Department and was disbursed as follows:

    (a) R122m to Housing Development Agency which was appointed as the implementing agent for all new developments in the municipality;

    (b) R46,5m for projects to be completed in the municipality by the Eastern Cape Department of Human Settlements – ECDOHS;

    (c) R50,3m to the Municipality to complete current running projects (R50, 3m);

    (d) R95m to the Revolving Fund of municipality as a reimbursement for bridge financing to fund housing construction;

    (e) R186,2 to fund project commitments in the Eastern Cape other than Nelson Mandela Metropolitan Municipality.

(3) The funds expended on rectification during the year under review were funded from the original Human Settlement Development Grant allocation to the Eastern Cape for 2015-16 financial year.

(4) An amount of R186, 2 m was spent on subsidised housing construction in the Eastern Cape other than in the Nelson Mandela Metropolitan Municipality, from additional R500m allocation.

Reply:

(a) The total percentage spent by the National Department of Human Settlements for procurement from Small, Medium and Micro-sized Enterprises (SMMEs) for the period 01 April 2015 to 31 March 2016 is 32%.

(b) (i) The information related to Entities on Small, Medium and Micro-sized Enterprises is as per the table below:

Entities	% Spent on SMME's
HDA	30.41%
NHBRC	45%
NHFC	45%
RHLF	35.35%
NURCHA	15.81%
EAAB	49%
CSOS	45%

Provinces

The Provinces are spending on average 66 % of the Human Settlements Development Grant on Small, Medium and Micro-sized Enterprises (SMME’s) of total procurement for the 2015/16 financial year ending 31 March 2016.Limpopo and Free State have spent more than 90% whilst Western Cape and Gauteng are spending the lowest at 46% and 32% respectively to their Small, Medium and Micro-sized Enterprises.

Provinces	% Spent on SMME's
Eastern Cape	-
Free State	90%
Gauteng	32%
KwaZulu Natal	55%
Limpopo	97%
Mpumalanga	63%
Northern Cape	70%
North West	71%
Western Cape	46%

The percentages are 100% of the total procurement by provinces and it is as at 31/03/2016

(ii) Cooperatives

The Department is promoting and supporting the establishment of Cooperatives within the human settlements delivery chain. To this end, the Department (through People’s Housing Process Directorate) has partnered with the Department of Small Business Development (DSBD) and the following has been achieved:

• Approximately 65 different Cooperatives have been established in six (6) Provinces, namely KZN, Gauteng, Free State, North West, Western Cape and the Eastern Cape
• Housing or human settlements Cooperatives serves as a catalyst for the establishment of other Cooperatives. The housing Cooperatives ranges from Construction Cooperatives, brick-making, window/door frame making Cooperatives, carpentry, plumbing, transport, electricity, painting etc.
• Other livelihood Cooperatives formed will focus on agriculture, sewing, catering, poultry, shoe-making etc.
• Most of these Cooperatives are led by Women and Youth and there is one Cooperative established in the Free State led by Disabled people
• A Military Veterans Cooperative called Matrosov was also established in the Eastern Cape for the Chatty 491 project in Port Elizabeth
• Delivered pre-formation and Cooperatives workshops in the six (6) Provinces
• Assessed the state of readiness for the Cooperatives Incentive Scheme (CIS) registration application for registered Cooperatives in KZN and Free State. The main objective of the CIS registration is to enable the Cooperatives to access grant funding from the DSBD as part of the start-up capital
• In partnership with DSBD, delivered CIS workshop to the registered Cooperatives in the Free State who have now applied for the CIS Grant from DSBD
• Through the partnership with DSBD, a project will be identified as a pilot under the new Cooperatives Incubator Programme led by DSBD
• The Department will be sourcing Training and Skills development initiatives for the registered Cooperatives through NHBRC, SEDA and other similar institutions

Reply:

No. The Rural Households Infrastructure Grant (RHIG) is no longer part of the Department of Human Settlements (DHS) allocation. This grant was transferred to the Department of Water and Sanitation (DWS) in 2014 when this new Department was established as part of the National Macro Organisation of the State (NMOS).

(a) The Rural Household Infrastructure Grant was allocated the following amounts while still managed by the Department:

(i) R231.5 million in the 2011/12 financial year

(ii) R479.5 million in the 2012/13 financial year

(iii) R106.7 million in the 2013/14 financial year

(iv) R113.1 million in the 2014/15 financial year. The whole allocation was transferred to the Department of Water & Sanitation during the mid-term budget process

(b) The Department of Human Settlement has not been allocated any RHIG funding in 2016/17 financial year and over the MTEF period.

Reply:

(a) A total of 564 houses are to be built in the Ekuphumleni housing project in the Ndlambe Local Municipality, Eastern Cape;

(b) The estimated completion date is 31st March 2017;

(c) The budget allocated for the project is R89m.

Reply:

(1) I hope the Honourable member is not suggesting that he awaits my invitation for him (or his party) to undertake his oversight responsibility. The Honourable member should ensure that his party is represented, if that is not the case, in the Portfolio Committee on Human Settlements or the Select Committee on Social Services. Both Committees have undertaken oversight visits to various provinces and made valuable recommendations to the National and Provincial Departments of Human Settlements. I encourage the Honourable member to do the same and partner with us in ensuring that we provide the much needed sustainable human settlements.

I must emphasize that as political representatives it is incumbent upon us to remain connected with our constituencies, thus we must and should always be aware of the living conditions of our citizens. In my view the entire days, weeks, months and years of a political representative must and should in fact constitute inspection-in- loco oversight of the impact of our work and what still remains to be done.

As part of our Ministerial outreach programmes, the Deputy Minister and I had on a regular basis undertaken oversight visits to areas referred to by the Honourable Member.

Notwithstanding, one of the key development focus areas of government has been to ensure that the previous Black dormitory residential areas comprising African, Coloured, Indian households, are transformed by providing all the essential infrastructure and services to ensure households quality of life is improved but also integrated with the mainly White residential areas and other economic infrastructure and services including retail, industrial, commercial, educational, technological, innovation and transport. This is a task carried out as a multi-sectoral and spherical government area of development and includes private business and communities as partners.

Since the dawn of democracy, the National, Provincial and Municipal spheres of government have planned and implemented various programmes and projects in the Black residential townships established prior and post 1994. These include the various Special Presidential Programmes, Special Provincial and Municipal Programmes and projects, which have been implemented and include amongst others but not limited to the Kathorus and Alexandra Special Presidential Projects in Gauteng, the INK Programme in Ethekwini in KZN, the Special Presidential Projects implemented in Khayalitsha and Mitchells Plan, in the City Of Cape Town, the focused infrastructure programme implemented in Soweto, in the City of Johannesburg and more recently the focused programmes implemented in Botshabelo in the Free State and Umtata in the Eastern Cape.

It is also important that we are reminded of our continued infrastructure and services grants which include the Municipal Infrastructure Grant, the Urban Settlements Development Grant, the Integrated Energy Grant, the Neighbourhood Development Grant as well as the Regional and Bulk Infrastructure Grant for water bulk and link infrastructure, are also applied in the goal of achieving the sustainable development transformation of inherited dislocated and apartheid created dormitory residential areas.

(2) The Honourable member is referred to my reply to question 279 wherein I indicated that;

“Indeed Honourable member, we have taken considerable strides in transforming apartheid established townships and we are determined to do more still in order to reverse the apartheid spatial planning and its legacy. For instance, in Soweto we have provided sports facilities, built malls, and paved roads. I invite the Honourable member to visit Cosmo City, which is one amongst our success stories. Evidence of our projects can be seen in many apartheid established townships nationally, places like Kwa-Mashu, Umlazi, Langa, Khayelitsha, Mamelodi and Atteridgeville are a few examples where our footprint can be seen.

We have managed to transform approximately 98% of all our projects to be representative of a human settlement, which includes access to amenities like schools, medical facilities, shopping centres, places of worship, points of transportation and access to roads.

The table below indicates the Human Settlements’ footprint.

Number of projects reflecting characteristics of a Human Settlements
	Number of projects being implemented (2014/15)	Amenities: Schools, Medical Facilities, Shopping Centres, Places of Worship, Transportation (Bus-, Taxi-, Railway Points)	Access to roads
Province		1 km Radius	5km Radius	10km Radius	1km Radius	5km Radius
EC	977	829	941	942	904	942
FS	1538	1282	1507	1521	1476	1521
GP	1276	1156	1274	1274	1266	1274
KZN	942	735	924	925	877	925
LP	1251	882	1198	1224	1070	1224
MP	1666	1208	1563	1581	1499	1583
NC	573	354	433	448	430	467
NW	473	436	544	555	542	560
WC	1540	1438	1511	1516	1494	1516
Total	10236	8320	9895	9986	9558	10012
% of projects within specific distances from the project, with characteristics of a human settlement		81%	97%	98%	93%	98%

It is further important to note that out of a total of 10 236 projects, only 70 projects (0.68%), fall outside a designated town boundary. That is due to the fact that they are projects that focus on rural communities and self-help projects (PHP).

Additionally, we have referenced and profiled a few of the largest towns in the country in relation to the above analysis (Annexure A). From this list there are none of these large towns that cannot be classified as a human settlement based on the definition of a human settlement”.

Reply:

Indeed Honourable member, we have taken considerable strides in transforming apartheid established townships and we are determined to do more still in order to reverse the apartheid spatial planning and its legacy. For instance, in Soweto we have provided sports facilities, built malls, and paved roads. I invite the Honourable member to visit Cosmo City, which is one amongst our success stories. Evidence of our projects can be seen in many apartheid established townships nationally, places like Kwa-Mashu, Umlazi, Langa, Khayelitsha, Mamelodi and Atteridgeville are a few examples where our footprint can be seen.

We have managed to transform approximately 98% of all our projects to be representative of a human settlement, which includes access to amenities like schools, medical facilities, shopping centres, places of worship, points of transportation and access to roads.

The table below indicates the Human Settlements’ footprint.

Number of projects reflecting characteristics of a Human Settlements
	Number of projects being implemented (2014/15)	Amenities: Schools, Medical Facilities, Shopping Centres, Places of Worship, Transportation (Bus-, Taxi-, Railway Points)	Access to roads
Province		1 km Radius	5km Radius	10km Radius	1km Radius	5km Radius
EC	977	829	941	942	904	942
FS	1538	1282	1507	1521	1476	1521
GP	1276	1156	1274	1274	1266	1274
KZN	942	735	924	925	877	925
LP	1251	882	1198	1224	1070	1224
MP	1666	1208	1563	1581	1499	1583
NC	573	354	433	448	430	467
NW	473	436	544	555	542	560
WC	1540	1438	1511	1516	1494	1516
Total	10236	8320	9895	9986	9558	10012
% of projects within specific distances from the project, with characteristics of a human settlement		81%	97%	98%	93%	98%

It is further important to note that out of a total of 10 236 projects, only 70 projects (0.68%), fall outside a designated town boundary. That is due to the fact that they are projects that focus on rural communities and self-help projects (PHP).

Additionally, we have referenced and profiled a few of the largest towns in the country in relation to the above analysis (Annexure A). From this list there are none of these large towns that cannot be classified as a human settlement based on the definition of a human settlement.