ATC170509: Report of the Portfolio Committee on Human Settlements on oversight visit to Free State, dated 9 May 2017

Human Settlements, Water and Sanitation

Report of the Portfolio Committee on Human Settlements on oversight visit to Free State, dated 9 May 2017

The Portfolio Committee on Human Settlements, having conducted an oversight visit to Free State from 30 January to 3 February 2017 in relation to the implementation of the human settlements strategic plans, projects and programmes, reports as follows:

1. Background

In terms of South Africa’s Constitution of 1996 as well as parliamentary rules, the Portfolio Committee on Human Settlements has a responsibility to conduct oversight over any executive organ of state that falls within its portfolio. In line with this mandate, the Committee undertakes provincial oversight visits to evaluate progress and identify challenges encountered in respect of the implementation of programmes and projects. Furthermore, the Committee seeks to promote and enhance intergovernmental relations and co-operative governance principles in the delivery of human settlement services. To give effect to its strategic plan, the Committee conducted an oversight visit to the Free State Province during the third term of the parliamentary programme, i.e. 30 January to 3 February 2017.

2. Objectives of the visit

The objective of the visit is to conduct a briefing session with the provincial department, two metropolitan municipalities as well as other stakeholders in relation to the implementation of the human settlements strategic plans, projects and programmes. In addition, the Committee recognised a need to conduct site visits. The focus of the oversight visit will be on the following key issues:

Implementation of a comprehensive, integrated human settlements strategy in the province;
Progress made towards the achievement of Outcome 8 outputs and targets set for 2016/17
Budget expenditure and performance in meeting service delivery targets set for 2016/17;
Role of the public and private sectors in service delivery;
Progress in supporting disaster-affected communities;
Progress made in the construction of houses for military veterans;
Progress made on the construction of houses for destitute, special needs and vulnerable people;
Rural and farm worker assistance, housing co-operatives assistance programme as well as the People’s Housing Process;
Plans and progress on Community Residential Units (CRUs);
Co-ordination and management of the beneficiary list and incorporation of backyard dwellers into the provincial housing database;
Use of alternative technologies in construction.

The Committee also met with the office of the Registrar of Deeds to get a presentation on the role it plays in the issuing the title deeds for human settlements projects, especially state-subsidised houses.

3. Multiparty delegation

The delegation consisted of Hon N N Mafu (ANC) as leader of the delegation, Hon L Mnganga-Gcabashe (ANC), Hon HMZ Mmemezi (ANC), Hon LP Khoarai (ANC), Hon M Mokause (EFF) Hon KP Sithole (IFP) and Mr M Shelembe (NFP).

The delegation was accompanied by Committee Support Staff: Ms K Pasiya-Mndende, (Committee Secretary); Mr S Mnguni, (Content Advisor); Mr S Makeleni, (Committee Assistant) and Mr M Molepo, Communications Officer.

The delegation was also accompanied by the officials from the national Department of Human Settlements: Mr W Jiyane, Director-General – Stakeholder and Intergovernmental Relations; Mr M Kraba, Director – Director-General’s office (Parliamentary Liaison Officer); Mr J Mokokga, Director: Grants; Ms S Modimola, Deputy Director – Stakeholder and Intergovernmental Relation Coordinator; Mr S Watani, Parliamentary Liaison Officer (Deputy Minister’s Office); Ms L Visser: Deputy Director: Monitoring and Evaluation; Mr T Montse: Deputy Director – Communications; Mr S Chauke: Town and Regional Planner – PPMU; Mr O Makhonxa: Assistant Director – Stakeholder and Intergovernmental Relations; Ms M Tabane: Intern- Policy.

Members of the Provincial Legislature and officials from the provincial department

The delegation was accompanied by Ms S Moleleki, (ANC): Chairperson of the Portfolio Committee on Infrastructure Development; Ms L Mapena, (ANC); Ms K Phukuntsi, (ANC); Ms M Mokotlo, (ANC); Ms M Sechoaro, (ANC) and Ms L Kleynhans, (DA).

Members of staff were Mr B Machoabane, Committee Researcher; Mr D Mlangeni, Committee Researcher; Ms C Khakhane, Senior Public Participation Officer and Ms P Khunou, Committee Coordinator.

Mr T Mokhesi, Head of Department; Mr C Monyela, Deputy Director-General: Human Settlements; Ms C Tlali, Chief Director: Human Settlements Development Planning; Mr F Tokwe, Chief Director: Project Management Unit; Mr L Mokoena, Chief Director: Project Management Unit; Adv T Tsuaeli, Director: Legal Services; Mr T Kumalo, Deputy Director: Land Tenure Services; Mr Z Mogorosi, Office Manager: Office of the MEC; Mr T Roberts, Acting Director: Fezile Dabi District; Ms K Somiah, Acting Manager: Office of the Head of Department; Mr P Madibane, Director: Social and Rental; Mr K Motitsoe, Deputy Director: Security Management and Anti-Corruption; Ms M Mochologo, Assistant Director: Social Housing; Mr V Sophazi, Security Maintenance Officer; Mr A Radebe, Security Maintenance Officer; Mr V Madonsela, Security Maintenance Officer; Mr S Bongatsu; Mr A Mahadeo, Project Manager; and Mr M R Rodrigves, Cuban Technical Adviser.

4. Overall summary of the oversight visit

The delegation visited three districts municipalities Fezile Dabi; Matjhabeng and Lejweleputswa as well as Mangaung Metropolitan Municipality. The delegation was well received in the province and it received a briefing from the provincial Department of Human Settlements where the state of delivery performance, targets set and the funding was outlined. The performance for each human settlements programme and challenges were discussed. Throughout the oversight visit, the following broad issues were identified: Pipeline planning in the province proved to be a persisting problem, there was a general non- compliance with policy principles as reflected in the Housing Code, and there were no punitive actions against those who “do not do their work”, lack of visibility by Human Settlements institutions. It also emerged strongly that the issuing title deeds was at slow pace, there was need to transform the real estate sector. Lastly, there was a lack of investment in bulk infrastructure.

5. Overview of meetings and site visits

5.1 Presentation by Head of Department (HOD) of Human Settlements

Meeting with the provincial department of Human Settlements, the provincial Portfolio Committee on Human Settlements and the national Department of Human Settlements on the implementation of a comprehensive human settlements plans, programmes and projects. Furthermore, the implementation of human settlements strategy in the province.

The Head of Department of Human Settlements presented the status quo of the Province. He stated that the overall budget for the Province was R1 098 411 billion. The province was planning to deliver 7449 sites at an amount of R267 349 million; deliver 5026 at an amount of R728 171 million and the issuing of title deeds at an amount of R29 474 million. He further stated that the 5026 units will be divided accordingly in the following categories:

Integrated Residential Development Programme (IRDP) – 3249 units
Financed Link Individual Subsidy Programme – 220
Social and Rental Housing – 1 557

He further breakdown the figures of units to be delivered per municipalities and the detailed budget per regions.

The provincial department undertook that it will revert back to the approved 40m² units. The metropolitan municipality to finance sites through the Urban Settlements Development Grant.

5.1.1 Human Settlements Development Grant Report

Human Settlements Development Grant	Main Appropriation 2016/17	Rollover	Adjusted Appropriation 2016/2017	Expenditure as a as at 31/12/2016	Available Amount as at at 31/12/2016	%Spent Expenditure
Human Settlements Development Grant	R’000	R’000	R’000	R’000	R’000	%
Financial intervention	94,529		87,296	71,708	15,588	82%
Incremental interventions	692,045	2,748	700,360	598,866	101,494	86%
Social and Rental interventions	166, 808		194,491	192,826	1,665	99%
Provincial specific programmes	145,029		119,048	118,816	232	100%
Total	1,098,411	2,748	1,101,195	982,216	118,979	89%

5.1.2 Informal Settlements Upgrading

The province reported that it has 143 informal settlements and the rapid assessment and categorisation was completed. Out of this number 41 informal settlements has been upgraded. Resettlements plans were completed for 27 informal settlements and 20 were in progress in different local municipalities.

5.1.3 Township establishment

It was reported that township registers were opened in some municipalities and a list per districts was made available. In some instance township register was delayed due to original tittle deeds not with the attorneys. Some parcel of land were still under the Department of Public Works, waiting on transfer of property and ownership still not resolved. It was also reported that some applications were submitted to the Surveyor General for approval and some waiting for MEC’s approval.

5.1.4 Projects planned for 2016 – 2019

The list of the planned services projects were made available per region indicating the targets and description of the projects. These varies from the water waste treatment plants, water and sewer, servicing of site and construction of houses. There were also planned housing units for catalytic projects. The catalytic projects were aimed to yield 23 005 units in various districts.

5.1.5 Title deeds

It was reported that the planned targets for the issuing of title deeds was 29 474 for the post 1994 and 780 for the pre 1994. It was further reported that the national Department of Human Settlements has intervened by establishing a National Steering Committee where all provinces were members in turn the provincial department established Provincial Steering Committees were all municipalities within the province and the Deeds Office were members. The purpose of the steering committees was amongst others to facilitate and fast-track the registration of title deeds. The provincial department reported that only three municipalities that were constantly attending the Provincial Steering Committees that was Nala, Tswelopele and Setsoto. This had a negative impact in the issuing of title deeds as they delayed to sign deeds documents. The provincial department reported that it has appointed 17 conveyancing law firms for registration of title deeds across the province, 11 were black owned and six were white owned. This was an intervention to fast-track the issuing of title deeds.

5.1.6 Beneficiary management

It was reported that there was an absence of integrated housing needs register. This absence has affected accurate planning of projects in line with needs dynamics of areas such as migration. It was also reported that there was over supply of approved beneficiaries who have not received houses as it was taking too long to build houses for the approved beneficiaries. The provincial department reported that it was in a process to clean up its Housing Subsidy System (HSS) in order to align beneficiaries with correct sites. Preparations for the compilation of Housing Needs Register (HNR) which would quantify the needs of every citizen in need of any type of housing was underway. Presentations were made to the MEC and EXCO on the role of HNR in housing allocation and planning process. Also workshops were planned to all municipalities on the implementation of the HNR. The needs of the backyard dwellers would then be addressed and be included in the future plans of the department and the municipalities.

5.1.7 Use of alternation technology

The provincial department had embarked on piloting alternative building technology. The technology was used in a projects in Vrede where 1000 units were to be erected. By the time of the visit it was reported there were 178 units completed.

5.2 Presentation on the progress made in the registration with respect to implementation of the Military Veterans Housing Programme

An official responsible for the benefits of the Military Veterans presented and reported that the Military Veterans Act, 18 of 2011 was enacted as a result in the establishment of the Department of Military Veterans as part and parcel of government’s support and recognition of the Military Veteran’s meaningful contribution towards the creation of democratic, peaceful and prosperous South Africa. The Act defines the Military Veterans as a citizen who rendered military services to any of the military organisations, which were involved on all sides of the South African’s liberation war from 1960 to 1994. Those who served in the Union of Defence before 1961, and those who became members of the South Africa National Defence Force after 1994 and has completed his or her military training and no longer performs military duties and has not be dishonorably discharged from that military organisation. The Act further places the state’s obligation to roll-out the following services and benefits to the Military Veterans and their dependents military pension; housing; free access to military health care services; free or subsidised access to public transport; skill acquisition and education support; job placement; burial support; entrepreneurial support services; counselling; compensation to military veterans and honouring and memorialization.

The national Departments of Human Settlements and Defence and Military Veterans signed a Memorandum of Understanding committing both parties in 2015/16 to construction of 220 houses for the provincial military veterans. The province had committed to construct 100m² housing for the military veterans through the Housing Subsidy Quantum and the breakdown was as indicated below:

Equitable share – R100 000
Department of Military Veterans – R78 000
Human Settlements Development Grant – R110 000

The total funding was R288 000 00.

It was reported that there was a Military Veterans Desk established in the Premier’s Office to coordinate and address identified military veterans’ benefits in conjunction with relevant government departments. Provincial Interdepartmental Committee was established comprising of the following stakeholders Office of the Premier (Milvets Desk); Provincial Government Departments; SANMVA; Provincial Department of Military Veterans. It was reported that a strategic partnership was forged with the Department of Agriculture, DESTEA, Correctional Services for greening of Milvets Housing Programme (instant lawn, vegetable gardens and trees). The overall strategy was greening houses for Milvets to maintain and view their houses as valuable assets. The progress was reported as indicated below:

Lourie Park, Mangaung Metro – 30 units completed
Hillside View, Mangaung Metro – 50 planned and 44 slabs has been casted
Riebeeksdal and Hospital View, Matjhabeng Municipality – 62 units planned, municipal council resolved to allocate serviced sites and the project to start in 2017/18
Theunissen, Masilonyana Municipality two units partially completed
Boshoff, Tokologo Municipality – three to be implemented in 2017/18
Schonkeville, Ngwathe Municipality – six units partially completed due to lack of infrastructure. The service provider has been appointed to install infrastructure.
Kroonstad and Viljoenskroon, Moqhaka Municipality – 10 planned units, 6 at completion stage but delayed due to lack of infrastructure. The service provider had been appointed to install the infrastructure.
Sasolburg, Moqhaka Municipality – eight planned units, Department of Public Works had donated sites and the projects would be implemented 2017/18.
Ladybrand, Manstopa Municipality – eight planned units. The Municipal Council had allocated sites and the project would be implemented in 2017/18.
Bethlehen (Vogelfontein), Dihlabeng Municipality – 50 units planned. The Municipal Council had allocated sites and the project would be implemented in 2017/18.

The amount set aside for the construction of Milvets was R8 311 796.

There were also challenges sited that were hindering the construction of Milvets houses were as indicated below:

Milvets did not have owned services sited to enable speedy housing construction;
Programme implementation is dependent on municipalities providing serviced sites and some municipalities provide serviced sites without infrastructure service;
Most non-statutory force members, main programme target group, were not captured on the Department of Military Veterans database and this impeded speedy programme implementation;
Housing Subsidy System (HSS) verification of Milvets was cumbersome – housing subsidy application forms, capturing forms on HSS; HSS searches on beneficiary employment and property status and HSS findings.

It was alluded to the fact that some of the challenges would be address by the finalisation of military veterans’ database. The alignment of HSS process with the Military Veterans qualification criteria and the conclusion of amendments of the Military Veterans.

Presentation by the office of the Registrar of Deeds

The delegation received a detailed presentation from the officials from the Office of the Registrar of Deeds led by the Chief Registrar. There were several elements to note in relation to human settlements (issuing of title deeds). These elements were as follows:

That RDP deeds were registered within three days, not 6 days as generally assumed;
That the conveyancer must apply to the Deputy Registrar of Deeds;
A red stamp was affixed onto the deed indicating “RDP” and expedition;
Within regards to provision of information. The registrar of Deeds shall, upon payment of prescribed fee, permit any person to:
- Inspect the public registers;
- Make copies of such records, and;
- Obtain other information;
- Chief Directorate Deeds Registration does not wholly rely on the fiscus for its income, Category one business account.

Site visits
1. Site visit to Bloemfontein Dark and Silver City Community Residential Units (CRU) bottom site

The delegation visited the CRU project which aimed to construct 526 residential units which consists of bachelor rooms, one and two bed room units. The project also accommodate the disabled people, there are 30 units which are specially designed for disabled people. The contractor is a Free State based contractor with a Level 3 BEE status. By the time of the visit there were 18 units completed. The contractors were reported to be 30% of previously disadvantaged contractors. There were 336 job created comprising of youth, women and people with disabilities. The workers were also compensated with skills and training opportunities such as plumbing, electrical training, bricklaying, steel fixing and plastering.

The total budget allocation was R 123 598 354 and the total expenditure was R111 238 519. The buildings were at various stages of completion, the majority at 85% complete. Contractors were at finishing. The estimated completion date was March 2017.

Site visit to Bloemfontein Dark and Silver City Community Residential Units (CRU) top site

The current beneficiaries identified originates from the existing Dark and Silver City hostels as well as surrounding areas.

The project aimed to construct 286 residential units which consists of bachelor rooms, one and two bed room units. The project also accommodate the disabled people, there are 30 units which are specially designed for disabled people.

The contractor is a Free State based contractor with a Level 2 BEE status. The nominated contractor to execute the work is JV Makgotamishe/Sedtrade.

Skills transfer and further training opportunities includes electrical training, plumbing, brickwork, plastering, steel fixing and scaffold erection skills.

Site visit to Caleb Motshabi

The delegation visited the project. There were no approved beneficiaries by the time of the visit. There were 1500 sites planned and the total budget for the construction was R 241 935 007.38 and the total expenditure R 34 338 523.78. The Contractor was Edwin Construction with Mafuri appointed as the Consulting Engineers. The project consist of installation of services i.e. water, storm-water and roads. It was reported that the employment model being used on site is to only employ sub-contractors, thus enhancing the local businesses in the area.

5.3.4 Site visit to Lourier Park – Military Veterans

The delegation visited a project where houses for military veterans were to be constructed. There were 30 beneficiaries approved for this project and the total budget was R 8 749 606.95 (including 5% retention) and the total expenditure was R 8 332 959.00.

The project scope of works were to build 30 new 80m2 housing units on existing serviced sites with semi-detached carports, making the total covered area 100m2. The total project value including NHBRC, Municipal cost, Land cost, material and construction operation costs is R 288 000.00 per house.

Various professional stakeholders were involved in the contractual, administrative and technical management. The technical stakeholders, who was responsible for the approval of construction work (milestones) are:

The Department HS housing technicians
The Municipal housing inspectors
The NHBRC
The Consulting Engineers (Morula Consulting)
Cuban technical Advisors

There were 43 jobs created and skills transfer and further training opportunities includes electrical training, plumbing, brickwork and plastering.

6. Meeting with the Mangaung Metropolitan Municipality - Overview of presentation

The delegation was welcomed by the Member of Mayoral Committee. He tendered an apology for the Mayor who could not join the meeting due to prior arrangements. He informed the delegation that the city require R3, 2 billion to eradicate sanitation backlogs. He further informed that there were no access roads and the city was lack of infrastructure.

The Head of Department in metropolitan municipality presented the comprehensive integrated human settlements of the city. He reported that metropolitan municipality had a capital budget of R1 868 509, 876 for the financial year 2016/17 which was consisting of different funding sources. The total Urban Settlements Development Grant was at R781, 297,583.

He reported that the title deeds project had annual targets of 2 500 for 2016/17. The municipality had managed to issue 1 133. The budget that was allocated for the project was R4.8 million from the Urban Settlements Development Grant and the funds spent were R1 811 692 million.

It was reported that there were 34 informal settlements in the metropolitan municipality. The municipality was going to do in-situ upgrading in 24 informal settlements and 10 were to be relocated. The bulk infrastructure reticulation was going to the in-situ upgrading those were Longridge Reservoir, Sterkwater Sewer Purification Plant, North East Waste Water Treatment Works and Botshabelo Water Reservoir and Sewer Purification Plant.

A list of informal settlements projects awaiting approval, the recently approved, new projects and those under construction in 2016/17 were made available. The list of upgrading of informal settlements included names of the projects were made available. The total budget set aside for those projects was R46, 5 million. He reported that the municipality was busy with the key infrastructure development projects that included the bulk water supply new and old projects; bulk sanitation; sanitation reticulation and roads rehabilitation programme. The basic sanitation backlogs eradication programme included the eradication of 58 650 Ventilated Improved Pit (VIP) and Pit toilets and the eradication of 2 104 bucket toilets. It was confirmed that there were no bucket toilets in Thaba Nchu. However, the municipality was requiring R3, 2 billion to eradicate sanitation backlogs.

There were road that were under rehabilitation and some in the townships. Pavement of sidewalks were under construction as part of the inner city rehabilitation. A budget of R24 million was spent in the past financial year and R30 million will be spent in 2016/17 for Botshabelo and Thaba Nchu. A list of land parcel earmarked for mega projects and mix development was made available. There were eight land portions in Sepane farm were acquired for development. There were six outstanding land portions still to be acquired and the funding being arranged to acquire the remaining land portions.

The Community Residention Units (CRUs) were under construction in Dark and Silver City. The social housing project was in Bradwag Phase 1 which was the first in the city. The project was completed and it had 100% occupation. Bradwag Phase II was at 68% progress and 341 units have been completed and 154 units were awaiting evictions. Long never-ending legal evictions process was a major challenge which as a ripple effect on other challenges like technical, contractual and financial liabilities. Bradwag Phase III commenced in 2015 and the anticipated completion was 30 March 2017. It was reported that three blocks were 93% completion with 106 units. It was also mentioned that there were plans for Central Business Development (CBD) regeneration in Waaihoek Precinct Redevelopment.

6.1 Site visit to Brandwag Social Housing

The municipality reported that the area of Brandwag was specifically identified for the development of Social Housing in the Mangaung Metro Municipality. There are 1 051 units to be developed including the existing 351 old municipal rental stock. Target Market in the Social Housing are beneficiaries earning between R1 500 and R7 500. The Free State Social Housing (FSHC) was established to oversee the implementation and management of the social housing stock. One of its role is to allocate social housing units on the basis of agreement with the Municipality and prescripts of the Social Housing policy.

The project was divided into three phases as indicated below:

phase 1 comprises of 402 units- which is both refurbishment of the old units and new

units;

phase 2 of 495 units comprise of which is both refurbishment of the old units and new units;
Phase 3 of 154 units comprise of completely new units;
Phase 1 of the project was complete and fully occupied.

During the time of the visit construction was in phase 2 of the project which was very challenging to implement due to units which were occupied by illegal and non-qualifying tenants. There were 341 units completed and occupied. Phase 3 was also under construction and anticipated to be completed in March 2017. The project value for phase 1 was R96 million. The project value for phase 2 was R118 million, 341 units completed and occupied. There are 154 units where construction is somewhat delayed due to illegal and non-qualifying tenants. The end date of the project was estimated at March 2017. The project value of phase 3 was R58 million and the end date was March 2017.

6.2 Site visit to Longridge Reservoir

It was reported that the Longridge reservoir was a bulk water to supply Mangaung Metropolitan Municipality. The project was 45 mega litres reservoir to augment the existing water supply network to the southern areas of Bloemfontein. The budget was R42 843 545, 50 which was sourced from the Urban Settlements Development Grant. It was reported to be completed in the last financial year.

6.3 Site visit to Hillside View

It was reported that the project was a greenfield project which included for large scale earthworks due to the slope of the terrain. In addition 402 units were to be built on the site in eight (8) blocks of flats including all appurtenant services. There were no approved beneficiary by the time of the visit. The total budget allocated to the project was R 122 039 190.25 and the total expenditure was expenditure R 98 066 802.28.

6.4 Sterkwater Waste Treatment Plant

It was reported that the plant was an extension of the Sterkwater Waste Treatment Plant. The upgrading would add 6 mega litres a day from 14 mega litre a day to 20 mega litres a day. The budget for the project was R109 078 585 million. An amount of R27 183 24 for 2016/17 was sourced from the Urban Settlements Development Grant. By the time of the visit the project was at 60% and was aimed to be completed by October 2017.

The delegation was informed that the employees were getting training to be steel fixers. It was proposed that young engineers should be given opportunity in a form of learnership to learn on the project.

7. Meeting with Matjhabeng Local Municipality

The delegation was welcomed by the Mayor. The Head of Department, provincial department presented on behalf of the municipality. He reported that the municipality has an overall budget for R244 461 018. There was a plan for 2 208 sites and the budget allocation was R96 253 983; plans for units was 967 and the budget was R144 603 035. The plans for issuing of 4 110 title deeds was R3 104 000. An amount of R500 000 was set aside for accreditation support.

The municipality had 21 informal settlements recorded, household settlement profiling conducted with the aim to provide the status quo and situation for each informal settlement. Technical upgrading plans were conducted in Baipehi informal settlement in Henneman. It was reported that 15 resettlement plans have been concluded. Informal Settlements Upgrading chapter of Municipal Housing Sector Plan were concluded. A list of informal settlements register was made available and the list of those completed was also made available.

It was reported that the National Upgrading Support Programme was supporting the municipality. Land acquisition and management and mapping was conducted. It was reported that there was technical support plan for mining towns and the implementation of the spatial transformation plan.

There were eight project for the township establishment which was at the value of R7 183 490, the expenditure was R5 750 240 and the balance was R1 433 251. The budget for 2017/18 was R1 433 251. The list of projects was made available and also planned projects for 2016 – 2019 was submitted also indicating the number of sites to be yield.

The municipality was allocated 4 110 title deeds to be registered, by the time of the visit 468 title deeds were registered. There were 1 247 deeds documents that were still not signed by the municipality. There were also area that township register was not opened yet. It was reported that the municipality had a partnership with South African Local Government Association (SALGA) to fast-track the accreditation programme. It also had partnership with Housing Development Agency (HDA) to assist the five identified local municipalities to develop their final accreditation business plans that was Matjhabeng; Metsimaholo; Moqhaka; Dihlagbeng and Maluti A Phofung. An amount of R2.5 million was allocated for the process.

It was reported that short skills programmes were completed in 2016/17 financial year which included housing sector plans; project management housing policy. The support on Consumer Education was ongoing and the working session were conducted on quarterly basis to assess progress and monitor the level of readiness in terms of the Accreditation Framework. There was work towards conducting the pre assessment to assess the Level 1 readiness in the fourth quarter of the 2017/18 financial year. The pre requisite documents were in place for pre assessment that were the Draft Accreditation Business Plan; Capacity Audit and Workplace Skills Plan; Approved Housing Sector Plan; Integrated Development Plan and Service Delivery Plan.

7.1 Site visit to Merriespruit Community Residential Units

The project is a Community Residential Units programme. It is the second mining hostel in the Lejweleputswa District to be revitalized and be turned into a CRU. The project is part of an agreement between the Department and Harmony Mines to revitalize some abandoned mining hostels and ready them for rental for qualifying tenants. The hostel is situated at the entrance of Meloding Township and is a former mining hostel.

The project was completed in March 2016. There are 448 units at the hostel and about 300 units are already occupied. The Matjhabeng Local Municipality was responsible for the day to day management of the project. There were 448 beneficiaries approved for the project, the total budget allocation was R 164 000 000.00 and the total expenditure was R 164 000 000.00. There were 502 jobs created.

7.2 Site visit to Thandanani Upgrading of Informal Settlements Programme

The delegation was informed that the project started in August 2014 and the Provincial Department of Human Settlements implements it. The scope of work is to build 1424, 50m2 RDP houses. The overall project progress is sitting at 87%. The contractual obligation to the contractors was to complete the project on 30 March 2017. The project was divided into 3 contractors namely: Tebcon, Maono &Future Solar. There were 108 jobs created. There were 460 beneficiaries approved for the project. The total budget was allocation was R 79 275 724.70 and the total expenditure was R65 371 022.61. There were 455 completed units out of 500 and the remaining units were still on progress.

8 Meeting with Moqhaka Local Municipality

The delegation was welcomed by the Member of Mayoral Committee responsible for Human Settlements issues in the municipality and the opening remarks were done by the acting Mayor. The Head of Department provincially presented the status quo of the municipality. He informed the delegation that the overall budget of the municipality was R22 565 526, there were no plans for sites. There were plans to construct 82 units at the budget allocated was R21 028 526. The issuing of title deeds was target at 917 and the budget allocation was R917 000. The accreditation support was budgeted for R500 000.

There were four informal settlements recorded and those were profiled with the aim of providing the status quo and situation for each informal settlement. There were three resettlement plans concluded. The Informal Settlement Upgrade chapter of the Municipal Housing Sector Plan was concluded.

There were 917 tittle deeds that the municipality was allocated to register. It was reported that 518 title deeds were allocated to the conveyancers to transfer and all deeds document were signed by the municipality. By the time of the visit, there were 248 title deeds registered. It was reported that there three portions of land identified and they were rezoned and will yield approximately 1496 units.

It was reported that the municipality had a partnership with South African Local Government Association (SALGA) to fast-track the accreditation programme. It also had partnership with Housing Development Agency (HDA) to assist the five identified local municipalities to develop their final accreditation business plans that was Matjhabeng; Metsimaholo; Moqhaka; Dihlagbeng and Maluti A Phofung. An amount of R2.5 million was allocated for the process.

8.1 Site visit to Kroonstad 170

This project is situated in Marabastad, on the north western periphery of the Kroonstad CBD, within the Moqhaka Local Municipality. The scope of works entailed the construction of 170 housing units in a node where the infrastructure was available. However due to vandalism and theft, these services no longer exist. The dwellings are 60m² in extent and comprise of two bedrooms, one bathroom and a living area. This houses are fitted with solar geysers, ceilings and plastered and painted internally. The exterior is finished in face brick. To date the contractor has completed 156 well-constructed units and is current busy with four completions. There were 48 jobs created and the skills transfer and further training opportunities includes electrical training, plumbing, brickwork and plastering were also offered. There were 170 approved beneficiaries and 156 units were completed. The total budget was R 31 664 222.98 and the total expenditure R 28 898 189 by the time of the visit.

8.2 Site visit to Milvets units

The project is situated in Kroonstad, on the north western periphery of the CBD. This project was initiated by the Premier to honour the soldiers of the country. The development comprises of nine, 100m² housing units which includes a single carport, perimeter fencing and quality internal finishes. The internal layout offers three bedrooms, two bathrooms and open plan living areas. The locality was chosen by a delegation from the Department of Human Settlements, together with members of the Moqhaka Municipality. There were 14 jobs created in the project. There were nine (9) of approved beneficiaries. The total budget was allocation R2 941 011.27 and the total expenditure by the time of the visit was R544 347.50.

8.3 Site visit to Bokahosane Bana Project (Place of safety)

The delegation visited the place of safety where vulnerable children were accommodated. The place was built by the Department of Human Settlements in collaboration with the Department of Social Department. The delegation was informed that the building will remain a government property even though there was a Non-governmental Organisation that was utilising it and looking after the kids. The building had 17 bed-rooms that was going to accommodate the kids, fully equipped kitchen and elevator for those who were on wheel chairs.

9. Meeting with Metsimaholo Local Municipality

The delegation was welcomed by the Executive Mayor. The Head of Department provincially presented the status quo of the municipality. He informed the delegation that the overall budget for the municipality was R118 719 662. He reported that the municipality has planned to service 1 614 sites for R38 326 341, deliver 400 units for the value R79 435 321; to issue and restore 1450 title deeds at the value of R1 450 000. An amount of R500 000 was set aside for the accreditation support. He informed the delegation that the municipality had six informal settlements which have been profiled with the aim to provide the status quo and the situation for each informal settlement and resettlements plans have been concluded. The Informal Settlements Upgrading chapter of municipal Housing Sector Plan concluded.

The municipality was allocated 1450 title deeds to register. It was reported that 1144 title deeds have been allocated conveyancers to transfer. The 229 exceptions were previously transferred; 679 were signed ad in process of being registered. By the time of the visit 236 title deeds were registered. It was reported that 483,735 ha of land were acquired of which 470, 8854ha had been earmarked for catalytic project. The project will yield approximately 8500 mixed housing development. Project packaging was being finalised.

With regards to the houses for Military Veterans, there were eight units planned and the Department of Public Works donated sited and project to be implemented during 2017/18 financial year.

The Director: Human Settlements presented the status quo of the municipality. He informed the delegation that the municipality in cooperation with the Department of Human Settlements and the Housing Development Agency decided to fast-track the land acquisition suitable for development; planning, surveying and township establishment processes; to secure services (bulk and internal reticulation) and to enhance housing development projects for the purpose of creating sustainable human settlements and to eradicate quantified backlogs of approximately 9000 families as far as possible by 2030. He further stated that the municipality was in process of applying for level accreditation and the Business Plan was at 90% completion.

He reported that a team of professionals was appointed by the Department of Human Settlements to conduct feasibility studies for assessing three properties that were hostel 2, 3 and 4 in Zamdela for the Community Residential Units (CRUs). Due to poor condition of the hostel it was then agreed to be upgraded from single to family units. The MEC responsible for Cooperative Governance, Human Settlements and Traditional Affairs agreed that residents of Hostel 4 were given right to be accommodated in the newly built facilities. The beneficiaries were then accommodated there as interim arrangements.

The Housing Development Agent purchase six portions of land. The catalytic (mega) project were to be built. In phase 1 land acquisition was at 90% completed and urban designs for the catalytic projects were concluded. The planned projects for 2017 – 2020 were made available.

9.1 Zamdela Community Residential Units

The Sasolburg Zamdela Hostel 4 is located on the periphery of Zamdela, within the Metsimaholo Municipal area. The project entails the construction of community rental units and freestanding IRDPs located at Nick Ferreira.

The former is currently in its construction phase. To date 128, one and two bedrooms units are completed and a further 128, double storey, semi-detached, partial wall-plates are in progress. The completed units are occupied.

At Nick Ferreira Stefanutti Stocks constructed 144 freestanding, two bedroom units. These unit are well constructed with average finishes. Off the 144 units constructed, 101 are occupied. There were 80 jobs created. There were no beneficiaries approved while there were 256 units planned and 128 were completed. The total budget allocation for the project was R 116 637 262.92 and the total expenditure was R 114 516 114.

10. Observations made by the delegation

The following observations were made by the delegation in respect of its oversight visit to Free State, it has observed that:

The provincial department did not spent the 100% of the grant allocated to it but requested additional funding. The provincial performance has yielded far less housing opportunities than expected as a matter of fact the remaining R118 million would not be able to achieve the deficit of 9 193 housing opportunities for the financial year;
The provincial department was deviating from the policy in term of the size of the houses that were constructed for different beneficiaries. It was still constructing 50m² for the state subsidy houses and 100m² for military veterans instead of 50m² for the military veterans and 40m² for the state subsidised houses. This was a matter of concern as same municipalities had requested to retain the building of 50m²;
The targets for the construction of houses for the military veterans was at a snail pace, this was due to unavailability of serviced land as the military veterans had no site of their own to speed up the process. As a result the military veterans were dependent of municipalities to provide the serviced site;
Provision of bulk infrastructure was a challenge which led to scaling down of human settlements projects especially in Moqhaka Local Municipality.
In this municipality there was a challenge of six units affected by underground water. That had forced the municipality to prioritised relocation of those families as there was a high risk posed by the conditions;
Most municipalities were unable to deliver services as they lack mandate to do so. An accreditation to level one was an option the province was geared to as this would assist in the delivery of services especially housing opportunity;
Inability of the provincial department to utilise the 2% of the Human Settlements Development Grant (HSDG) in the issuing and eradication of backlog of title deeds;
The Mangaung Metropolitan Municipality was planning properly for the bulk infrastructure (construction of water reservoirs and waste water treatment plants) as this was going to assist in the eradication of informal settlements as well as the eradication of bucket toilets. The province had 143 informal settlements which some were to benefit in the bulk infrastructure. There were 41 informal settlements that were completed in terms of the upgrading programme, 20 in progress of upgrading and the plan for resettlement of 27 was completed. The issue of backyard dwellers was a challenged especially with regards to supply of basic services;
The Mangaung Metropolitan Municipality had managed to meet the requirements of the 60% expenditure of transferred funds by the end of the second quarter;
The province was performing poorly on the issue of title deeds. Most municipal officials were not attending the meetings scheduled by the Provincial Steering Committee that were dealing with restoration and issuing of title deeds. This has posed challenges as most of the municipalities were having a huge backlog on the delivery of title deeds. There were delays in the signing of deeds documents and unproclaimed township;
The provincial department had appointed conveyancing law firms for the registration of title deeds across the province of which 17 were black owned and six were white owned. The delegation was of the view that would accelerate the restoration and issuing of title deeds by the province;
It was observed that the Community Residential Units (CRU) were constructed. However, there were challenges such as the escalation of cost in building these structures, non-payment of rental by occupants and illegal occupation in some of the CRUs;
There was a challenge in the management of beneficiary list. This was evident in Metsimaholo Local Municipality where there were almost 30 houses that were standing vacant while there were sourcing out the beneficiaries. This could result in illegal occupation or vandalism;
There seemed to be less involvement of the mining houses in assisting their workers in housing opportunities;
The province was having its own entity that was installing or connecting electricity to the houses constructed. Therefore, the provincial department was not having any challenges of houses standing empty due to lack of electricity;
The provincial department seem to have good relations with human settlements entities such as Housing Development Agency (HDA) in the informal settlements upgrading programme as well as in the land identification and acquisition even though land yield was not indicated clearly and not released in the desired pace;
That there were plans in place for the construction of Finance Linked Individual Subsidy Programme (FLISP) projects as this will assist the people in the gap market;
That the provincial department was demolishing the two-bedroomed houses that were dilapidated and rebuild into 50m² (rectification). However, this was not providing any new housing opportunities;
That there was a need to address the issue of non-performing contractors. This was as a result of some contractors were not paid and were unable to continue building, especially the emerging contractors.

11. Recommendations

Based on the observations made, the Committee requests the Minister of Human Settlements to consider the following towards the attainment of Outcome 8 fundamentals. The Minister is further requested to ensure that a progress report on the recommendations is received by the Committee by the end of July 2017. The Minister should ensure that the national department:

Speed-up the accreditation process in order for municipalities to manage beneficiary administration. This would subsequently fast-track the issuing of title deeds.
Undertake punitive measures against officials who deliberately do not attend the Committee on Title Deeds. The Provincial Steering Committee should improve its communication in organising this meeting. This will ensure the attendance of the meeting by relevant officials.

Ensure visibility of entities to assist municipalities’ specific human settlements issues. These issues include land acquisition and beneficiary administration.

Ensure funding or review current funding models for bulk infrastructure.

Assist the national, provincial department and municipalities with capacity and technical skills required in town establishment plans.

Fast-track the integration of communities through spatial planning.

Advocate for the environmental protection policy. This was because human settlement, through construction, affects the environment which should be preserved for future generations.

Conduct consumer education on alternative building technologies to ensure environmental protection.

Report to be considered.

Documents

No related documents

ATC170509: Report of the Portfolio Committee on Human Settlements on oversight visit to Free State, dated 9 May 2017

Human Settlements, Water and Sanitation

Documents

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