ATC210602: Report of the Select Committee on Cooperative Governance, Traditional Affairs, Water, Sanitation and Human Settlement on 2021/2022 Annual Performance Plan and Budget Vote 33 of the Department of Human Settlements: dated1ST June 2021
NCOP Cooperative Governance & Public Administration
Report of the Select Committee on Cooperative Governance, Traditional Affairs, Water, Sanitation and Human Settlement on 2021/2022 Annual Performance Plan and Budget Vote 33 of the Department of Human Settlements: dated1ST June 2021
The Select Committee on Cooperative Governance and Traditional Affairs, Water, Sanitation and Human Settlement having considered Budget Vote 33: Department of Human Settlements, the strategic plans for the MTEF period and the 2021/2022 Annual Performance Plan of the Department of Human Settlements reports to the National Council of Provinces as follows:
1. Background and Introduction
- The Money Bills Amendment Procedures and Related Matters Act (2009) empowers Parliament to recommend, reject or amend budgets of National Departments and Organs of State. The Act also enjoins Committees of Parliament to compile and adopt Budget Vote Reports, based on interactions with the relevant Departments - and Entities reporting to them - on their Strategic Plans, Annual Performance Plans and Budgets.
- On the 28 May 2021 the Select Committee on Cooperative Governance and Traditional Affairs (Water, Sanitation and Human Settlement) had virtual meeting with the Department of Human Settlement to consider the 2021/2022 Annual Performance Plan and the budget allocation.
- Briefing on 2020/2021 Annual Performance Plan and Budget Vote of the Department of Human
- The Department of Human Settlement briefed members on 2020/2021 Annual Performance Plan and Budget allocation as aligned with the five- year Strategic Plan and Medium Term Strategic Framework and 2020 State of the Nation Address. The presentation focused on departmental programmes such administration; Integrated Human Settlements Planning and Development; Informal Settlements; rental and social housing and affordable. Housing. Each of these prgrammes are discussed in terms output; outcome indicators and budget allocation for the financial period 2021/2022
- Programme 1: Administration
- The purpose of Programme 1 (Administration) is to provide strategic leadership, management and support services to the Department. Over the medium term, this programme will contribute to the performance of the Department through the provision of effective and efficient administrative services to the line function to implement policies and programmes aimed a delivering sustainable human settlements.
- This programme is subdivided into number of sub-programmes. These include the Ministry, Departmental Management, Corporate Services, Property Management and Financial Management
- Some of the planned departmental output indicators for this programme during this financial year include, attainment of unqualified audit opinion with no matters of emphasis; 100 % compliance with statutory tabling and prescripts; 100% Implementation of the approved internal audit plan; 100% implementation of the approved anti-fraud and corruption plan ; 100% implementation of the approved risk management plan; 100% implementation of the Human Resource Plan; reports on the development of legislation as per Legislative Programme and approved ICT implementation plan as well as the communication strategy .
- The total budget for Programme 1 has increased from R 483.4 million in 2020/21 to R488.4 million in 2021/22, representing a real decrease value of 3.04%.
- Programme 2: Integrated Human Settlement Planning and Development
- The purpose of Programme 2 (Integrated Human Settlements Planning and Development), is to manage the development of policy, planning andresearch in the creation of sustainable and integrated human settlements, to oversee the delivery of the integrated residential developmentprogramme, and to coordinate intergovernmental partnerships with stakeholders.
- The main output indicators planned for 2020/2021 financial years include completion of researches on Agri-village and rainwater harvesting and exemption of Holding cost for state land earmarked for housing development; development of a draft Property Transactional Support Centres (PTSC) and Informal settlements upgrading macro policy
- The other output indicated planned by the department include monitoring of budget allocated to entities owned by designated groups; approval of 2022/23Human Settlements Grants Framework; assessment of human settlements grants (HSDG & USDG); implementation of the Human Settlements Capacity Assembly programme (IHSPDP); and development of 2022/23 National Human Settlements Development Plan
- Programme 3: Informal Settlements Upgrading
- The purpose of Programme 3 is to provide for policy, planning and capacity support for the upgrading of informal settlements, and to oversee the implementation of the informal settlements upgrading programme. From 2021/22, informal settlements projects will be funded from the newly created Informal Settlements Upgrading Partnership Grant (ISUPG). The provincial allocation to the grant amounts to R12.3 billion over the medium term and the allocation for metropolitan municipalities amounts to R12.5 billion.
- These grants are expected to be used to upgrade and formalise 300 settlements in each year over the medium term and deliver 180 000 stands with access to municipal services. Spending under Programme 3 is therefore expected to increase at an average annual rate of 143%, from R648.2 million in 2020/21 to R9.3 billion in 2023/24.
- In terms of the output indicators, the Department has planned to complete two rresearch reports on informal settlements upgrading; develop of policies on Social Facilitation and empowerment of designated groups; complete UISP baseline evaluation study and; implement the UISP Capacity Assembly Programme
- Programme 4: Rental and Social Housing
- The purpose of Programme 4 is to promote the provision of affordable rental housing, monitor the performance of the Social Housing Regulatory Authority, and develop capabilities in the rental housing sector through intergovernmental collaboration and evidence-based research
- The primary objective of this programme is to promote the delivery of affordable rental housing by conducting research and developing policies and programmes as and when required, accelerate the provision of affordable rental housing and to strengthen cooperation and collaboration by facilitating intergovernmental forums and stakeholder partnerships on an ongoing basis.
- Some of the planned outputs and performance indicators include development of policy framework on Rental Housing; monitoring of implementation of projects under Rental Housing Programme; completion of evaluation study on Rental Housing Tribunals; implementation of the Human Settlements Capacity Assembly Programme.
- Programme 5: Affordable Housing
6..1. The purpose of Programme 5 (Affordable Housing), is the provision of affordable housing finance, monitor market trends, to develop research and policy that respond to demand and to oversee housing finance entities that report to the Minister
6.2. Key objectives of the programme include acceleration of affordable housing finance through provision of capital and operational funding to the National Housing Finance Corporation for the administration of the Finance-Linked individual subsidy programme; research and development of policies and programmes that promote the provision of affordable financing or households
6.3. Some of the planned outputs and performance indicators include completion of one (1) research report on Affordable Housing: completion of feasibility of Mortgage Default Insurance; development of One (1) policy on affordable housing; completion of evaluation study on affordable housing and;implementation of the Human Settlements Capacity Assembly Programme
- Budget Allocation for the 2021 MTEF
- This section provides information of budget allocation for 2021 financial year. The focus is on human settlement development; informal upgrading; urban settlements development; and informal upgrading grants per provinces and municipalities as well as METF budget allocation per economic classification
Table 1: Informal Settlement Upgrading Grant
Provinces |
2021/22 |
2022/23 |
2023/24 |
R`000 |
|||
EASTERN CAPE |
432 428 |
458 151 |
478 343 |
FREE STATE |
228 001 |
241 563 |
252 209 |
GAUTENG |
1 109 179 |
1 175 155 |
1 226 950 |
KWAZULU-NATAL |
714 375 |
756 868 |
790 226 |
LIMPOPO |
254 336 |
269 465 |
281 341 |
MPUMALANGA |
259 233 |
274 653 |
286 758 |
NORTHERN CAPE |
76 709 |
81 272 |
84 854 |
NORTH WEST |
358 028 |
379 324 |
396 042 |
WESTERN CAPE |
457 429 |
484 638 |
505 998 |
Total |
3 889 718 |
4 121 089 |
4 302 721 |
Table 2: Urban Settlement Development Grant
Provinces |
Metros |
2021/22 |
2022/23 |
2023/24 |
EASTERN CAPE |
Buffalo City |
499 705 |
496 166 |
518 034 |
Nelson Mandela |
593 145 |
588 945 |
614 902 |
|
Sub Total |
1 092 850 |
1 085 111 |
1 132 936 |
|
FREE STATE |
Mangaung |
495 267 |
491 760 |
513 434 |
GAUTENG |
Ekurhuleni |
1 291 347 |
1 282 202 |
1 338 713 |
Jo'burg |
1 213 099 |
1 204 509 |
1 257 596 |
|
Tshwane |
1 051 557 |
1 044 111 |
1 090 129 |
|
Sub Total |
3 556 004 |
3 530 821 |
3 686 438 |
|
KWAZULU-NATAL |
eThekwini |
1 288 158 |
1 279 036 |
1 335 408 |
WESTERN CAPE |
Cape Town |
972 431 |
965 545 |
1 008 100 |
Grant Total |
7 404 711 |
7 352 273 |
7 676 316 |
Table 3: Municipalities Informal Settlement Upgrading Grant
Provinces |
Metros |
2021/22 |
2022/23 |
2023/24 |
EASTERN CAPE |
Buffalo City |
266 258 |
282 122 |
294 556 |
Nelson Mandela |
316 045 |
334 876 |
349 635 |
|
Sub Total |
582 303 |
616 998 |
644 191 |
|
FREE STATE |
Mangaung |
263 893 |
279 617 |
291 940 |
GAUTENG |
Ekurhuleni |
688 066 |
729 065 |
761 197 |
Jo'burg |
646 375 |
684 888 |
715 075 |
|
Tshwane |
560 301 |
593 685 |
619 851 |
|
Sub Total |
1 894 742 |
2 007 638 |
2 096 123 |
|
KWAZULU-NATAL |
eThekwini |
686 369 |
727 265 |
759 318 |
WESTERN CAPE |
Cape Town |
518 140 |
549 012 |
573 210 |
Total |
3 945 447 |
4 180 530 |
4 364 782 |
|
Total allocation R`000 |
2021/22 |
2022/23 |
2023/24 |
Total |
Departmental Operational |
927 655 |
941 406 |
943 712 |
2 812 773 |
Compensation of employees |
403 193 |
403 094 |
403 176 |
1 209 463 |
Goods and services |
520 655 |
534 328 |
536 373 |
1 591 356 |
Payment for Capital assets |
3 807 |
3 984 |
4 163 |
11 954 |
Grants and transfer payments |
30 730 303 |
31 677 878 |
33 052 116 |
95 460 297 |
Grants |
29 121 481 |
30 012 973 |
31 348 987 |
90 483 441 |
Human Settlements Development Grant |
13 402 961 |
13 857 905 |
14 481 903 |
41 742 769 |
Informal Settlements Upgrading Partnership Grant Provinces |
3 889 718 |
4 121 089 |
4 302 721 |
12 313 528 |
Provincial Emergency Housing Grant |
311 118 |
325 764 |
340 122 |
977 004 |
Urban Settlements Development Grant |
7 404 711 |
7 352 273 |
7 676 316 |
22 433 300 |
Informal Settlements Upgrading Partnership Grant Municipalities |
3 945 447 |
4 180 530 |
4 364 782 |
12 490 759 |
Municipal Emergency Housing Grant |
167 526 |
175 412 |
183 143 |
526 081 |
Entities |
1 596 832 |
1 652 487 |
1 690 665 |
4 939 984 |
Social Housing Regulatory Authority: Operational |
70 248 |
72 738 |
73 073 |
216 059 |
Social Housing Regulatory Authority: Institutional Investment |
22 725 |
23 534 |
23 623 |
69 882 |
Social Housing Regulatory Authority: Consolidated Capital grant |
764 646 |
791 144 |
825 958 |
2 381 748 |
Community Schemes Ombuds Services |
24 022 |
24 817 |
24 912 |
73 751 |
National Housing Finance Corporation: FLISP |
460 988 |
478 028 |
479 865 |
1 418 881 |
National Housing Finance Corporation: FLISP support |
18 824 |
19 510 |
19 585 |
57 919 |
Housing Development Agency |
235 379 |
242 716 |
243 649 |
721 744 |
Departmental Transfers |
11 990 |
12 418 |
12 464 |
36 872 |
Bursaries Scheme |
8 220 |
8 472 |
8 344 |
25 036 |
UN Habitat |
3 050 |
3 192 |
3 333 |
9 575 |
City Alliance |
720 |
754 |
787 |
2 261 |
Total |
31 657 958 |
32 619 284 |
33 995 828 |
98 273 070 |
Table 4: MTEF Budget allocation per Economic Classification
- Observations of the Select Committee
- The Select Committee has noted that the revised 2020/25 Strategic Plan and 2021/22 Annual Performance Plans were approved by the Executive Officer and tabled in Parliament on the 15th of March 2021.The Department has finalized and approved its 2021/22 Annual Operational Plan in line with the Revised Framework for Strategic Plans and Annual Performance Plans.
- The Select Committee has also noted that the Cabinet has introduced total budget cuts of the Department of Human Settlement amounting to R486.9 million over the 2021 MTEF period.The compensation of employees was cut by R188.3 million over the 2021 MTEF period. Goods and services was cut by R100 million over the 2021 MTEF period. The Social Housing Regulatory Authority: Operational was cut by R13.7 million over the 2021 MTEF period of which R107 000 is on compensation of employees
- The Social Housing Regulatory Authority: Institutional Investment was cut by R4.3 million over the 2021 MTEF period. The National Housing Finance Corporation: FLISP Capital was cut by R89.3 million over the 2021 MTEF period. The Community Schemes Ombudsman Services: Operational was cut by R4.8 million over the 2021 MTEF period of which R246 000 is on compensation of employees. The Scholarship Programme of the Department was cut by R2.3 million over the 2021 MTEF period
- Though the 2021/2022 Departmental Annual Performance Plan and Budget allocation was welcomed, the Select Committee however, raised concerns related to incomplete housing projects, non- communication with the Buffalo Municipality on the accreditation process and outcomes, backlogs of titled deeds, slow process of filling vacant positions of board members of the Public Entities accounting to the department , increased budget allocation for the utilization of consultants, monitoring of quality of houses built before 1994 and post 1994, lack of integrated approach to human settlement that takes into account the provision of housing, clinics, schools and other social amenities .
- Recommendations of the Select Committee
- The Department of Human Settlement should provide the Select Committee with the provincial breakdown of titled deeds in the municipalities
- The Department of Human Settlement should investigate and provide support to Matlosana Local Municipality on the problems relating to completion of housing projects including the company that has been contracted to provide the services and also provide support to Batloung Local Community in North West Province
- The Department of Human Settlement should fast-track the process of filling vacancies of members of the board servicing in Public Entities accounting to the Department
- The Department of Human Settlements should provide timeframes on all the planned research as contained in departmental programmes and performance indicators
- The department of human settlement should fast-track the accreditation process so as the enable Metro Municipalities to effective and efficiently implement to Urban Settlement Development Programmes and utilization of grants
- The Department of Human Settlement should provide quarterly reports on the progress and challenges relating to the achievement of the performance indicators contained in the 2021/2022 Annual Performance Plan and MTEF budget allocation
- The Select Committee should as part of ensuring executive accountability and performing oversight, aligns its 2021 parliamentary programme with the outputs and performance indicators of the 2021/2022 Annual Performance Plan of the Department of Human Settlement
- The Select Committee should during the 2021 financial period conduct proactive oversight visits to selected provinces in order to monitor the implementation and completion of the housing projects and the titled deeds in the local municipalities
Report to be considered
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