Department of Human Settlements Annual Report 2016/2017

260 Pages·2017·2.69 MB·English

H O U S E S • S E C U R I T Y • CO M F O RT
ANNUAL REPORT 2016/17
hu man settlements

Department:
Human Settlements
REPUBLIC OF SOUTH AFRICA
L N SISULU, MP
Minister: Department of Human Settlements
I have the honour of submitting the Annual Report of the Department of Human
Settlements for the period 1 April 2016 to 31 March 2017 for tabling in the National
Assembly on 30 September 2017.
M S TSHANGANA
DIRECTOR-GENERAL
Date: 31 August 2017
B u i l d i n g p a r t n e r s h i p t o w a rd s 6 m i l l i o n h o u s e s a n d s u b s i d i e s b y 2 0 1 9 .
TABLE OF CONTENTS
PART A: GENERAL INFORMATION
1. Department General Information 3
2. List of abbreviations/acronyms 6
3. Foreword by the Minister 7
4. Deputy Minister’s statement 8
5. Report of the Accounting Officer 9
6. Statement of responsibility and confirmation of accuracy for the
Annual Report 15
7. Strategic Overview 16
8. Legislative and Other Mandates 17
9. Organisational structure 20
10. Entities Reporting to the Minister 21
PART B: PERFORMANCE INFORMATION
1. Report of the Auditor-General Predetermined objectives 23
2. Overview of Departmental Performance 24
2.1. Human Settlements Service Delivery Environment 24
2.2. Service Delivery Improvement Plan 26
2.3. Organisational Environment 27
2.4. Key policy developments and legislative changes 27
3. Strategic Outcome Oriented Goals 28
4. Performance Information by Programme 29
4.1. Programme 1: Administration 29
4.2. Programme 2: Human Settlements Policy, Strategy and Planning 37
4.3. Programme 3: Human Settlements Delivery Support 42
4.4. Programme 4: Housing Development Finance 50
5. Transfer Payments 53
5.1. Transfer Payments to Public Entities 53
5.2. Transfer Payments to all Organisations other than Public Entities 56
DHS ANNUAL REPORT 2016/2017 1
TABLE OF CONTENTS
6. Conditional Grants 57
6.1. Conditional Grants and Earmarked Funds Paid 57
6.2. Conditional Grants and Earmarked Funds Received 79
7. Donor Funds 80
7.1. Donor Funds Received 80
8. Capital Investment 81
8.1. Capital Investment, Maintenance and Asset Management Plan 81
PART C: GOVERNANCE
1. Introduction 84
2. Risk Management 84
3. Fraud and Corruption 84
4. Minimising Conflict of Interest 85
5. Code of Conduct 85
6. Health Safety and Environmental Issues 85
7. Portfolio Committees 86
8. Scopa Resolutions 110
9. Prior Modifications to Audit Reports 111
10. Internal Control Unit 112
11. Internal Audit and Audit Committees 113
12. Audit Committee Report 116
Part D: Human Resource Management
1. Introduction 120
2. Overview of Human Resources 120
3. Human Resource Oversight Statistics 122
Part E: Financial Information
1. Report of the Auditor-General to Parliament on vote No. 38:
National Department of Human Settlements 160
2. Annual Financial Statements 165
2 DHS ANNUAL REPORT 2016/2017
1. DEPARTMENT GENERAL INFORMATION
PHYSICAL ADDRESS:
Department of Human Settlements
Govan Mbeki House
240 Justice Mahomed Street
Sunnyside
Pretoria
POSTAL ADDRESS:
P/Bag X644
Pretoria
0001
TELEPHONE NUMBER: [phone]
FAX NUMBER: [phone]
EMAIL ADDRESS: [email protected]
WEBSITE ADDRESS: www.dhs.gov.za
DHS ANNUAL REPORT 2016/2017 3
H O U S E S • S E C U R I T Y • CO M F O RT
4 DDHHSS AANNNNUUAALL RREEPPOORRTT 22001166//22001177
PART A:
GENERAL INFORMATION
DHS ANNUAL REPORT 2016/2017 5
2. LIST OF ABBREVIATIONS/ACRONYMS
AG Auditor-General MSP Master Spatial Plan
BASA Banking Association of South Africa MTEF Medium Term Expenditure Framework
B-BBEE Broad-Based Black Economic Empowerment MTSF Medium Term Strategic Framework
BID Business Intelligence Dashboard NCOP National Council of Provinces
BNG Breaking New Ground DHS Department of Human Settlements
CRU Community Residential Units NHBRC National Home Builders Registration Council
CSIR Council for Scientific and Industrial Research NHFC National Housing Finance Corporation
CSOS Community Schemes Ombud Services NMBM Nelson Mandela Bay Metro Municipality
DCoG Department of Cooperative Governance NURCHA National Urban Reconstruction and Housing Agency
DFI Development Finance Institutions NUSP National Upgrade Support Programme
DORA Division of Revenue Act OHS Occupational Health and Safety
DPSA Department of Public Service and Administration PFMA Public Finance Management Act
DSBD Department of Small Business Development PHP People’s Housing Process
EAAB Estate Agency Affairs Board PMDS Performance Management Development System
EAH Employer Assisted Housing RHLF Rural Housing Loan Fund
EHW Employee Health and Wellness SACN South African Cities Network
EIP Environmental Implementation Plan SACSSP South African Council for Social Service Professions
EMT Executive Management Team SADC Southern African Development Community
FLISP Finance Linked Individual Subsidy Programme SALGA South African Local Government Association
FOSAD Forum for South African Director-Generals SCM Supply Chain Management
FSIHS Framework for Spatial Investment for Human Settlements SCOPA Standing Committee on Public Accounts
GEHS Government Employee Housing Scheme SDIP Service Delivery Improvement Plan
HCT HIV Counselling and Testing SHRA Social Housing Regulatory Authority
HDA Housing Development Agency SITA State Information Technology Agency
HDI Historically Disadvantaged Individuals SMME Small Medium Micro Enterprise
HLAMDA Home Loans and Mortgage Disclosure Act SONA State of the Nation Address
HSDG Human Settlements Development Grant TB Tuberculosis
HSS Housing Subsidy System UISP Upgrading of Informal Settlements Programme
ICT Information and Communication Technology UNFCCC United Nations Framework Convention on Climate Change
MEIA Monitoring, Evaluation and Impact Assessment USDG Urban Settlement Development Grant
MinMec Minister and Members of Executive Committee
6 DHS ANNUAL REPORT 2016/2017
3. FOREWORD BY THE MINISTER
ed, safe and sustainable, the New Urban Agenda (NUA) reaffi rmed the global commitment to
sustainable urban development and is a critical step for realizing sustainable development in an
integrated and coordinated manner. The NUA reaffi rms the developmental policy logic which
resulted in the implementation of the Breaking New Ground Policy. Thus the Department, dur-
ing the course of the fi nancial year, accelerated the planning and implementation of BNG by
initiating projects that will serve as catalysts for spatial transformation, equity and justice. In doing
the work, we the Department remain conscious of the government obligation to ensure that all
citizens are provided with reasonable access to shelter. We thus took concrete steps to reaffi rm
and bed down the fi rm housing and human settlements development agenda and trajectory of
BNG, as restated in the National Development Plan.
In implementing the plans, we placed emphasis on radical socio-economic transformation which
is still at the centre of our programmes. Thus we ensured that women- and youth-owned enti-
ties participate in human settlements development. This has also been demonstrated by prior-
itising the eradication of the title deeds backlog programme, which is basically about retrofi tting
“BASED ON THE NATIONAL DEVELOPMENT 2030 VISION OF the past and ensuring that households in the subsidy market live in established settlements and
ENSURING THAT ALL CITIZENS HAVE AFFORDABLE ACCESS also are able to participate in the property market. During the year under review, we upgraded
TO SERVICES IN QUALITY ENVIRONMENTS WITH CITIES a signifi cant number of informal settlements, up-scaled the social and rental housing programmes
AND HUMAN SETTLEMENTS...” and enabled households to transact in the market. On the aforementioned, the gazetting of the
Property Practitioners Bill is an important milestone in the plan to transform participation, own-
It is with great pleasure and a deep sense of accomplishment that I present to you the 2016/17
ership and management of the property market to refl ect the totality of South African society.
Annual Report of the Department of Human Settlements (DHS). This report to Parliament
With all the work that the Department and the sector partners have delivered during 2016/17,
outlines and presents the performance of the Department against set and approved strategic
we remain committed to the mandate of especially ensuring that poor and middle income
objectives, targets and outputs for the fi nancial year 2016/17. At the core of the strategic intent
households live in habitable environments.
of the Department is to ensure that we strive to meet our Constitutional mandate – which is
to ensure the right to adequate housing for South Africans and all those who live in our country.
I am pleased to present the 2016/17 Annual Report which complies with all statutory reporting
The 2016/17 fi nancial year has been a year of mixed fortunes for the Department on a number
requirements, particularly section 40(1) of the Public Finance Management Act (PFMA), 1999,
of fronts. The regional and global leadership role played by South Africa in the adoption of the
and paragraph 18 of the National Treasury Regulations.
New Urban Agenda at the United Nations Conference on Housing and Sustainable Urban
Development (Habitat III) and in providing infrastructure and basic services for citizens as part
of restoring their dignity must be considered a highlight. We were able to do so through collab-
orative efforts with other sectors of departments, municipalities and the private sector.
Based on the National Development 2030 vision of ensuring that all citizens have affordable L N SISULU, MP
access to services in quality environments, with cities and human settlements which are integrat- Minister: Department of Human Settlements

DHS ANNUAL REPORT 2016/2017 7
4. DEPUTY MINISTER’S STATEMENT
Empowering Women and Youth in the built environment remains at the centre of our pri-
orities. The 2016/17 fi nancial year saw a considerable increase in our contribution as the
Department of Human Settlements towards building the capacity of women and youth,
equipping them with skills that allow their participation in economic development initiatives
within the built environment industry. In the year under review, we succeeded in ensuring that
we engage with the Department of Military Veterans and concluded a coordinated plan to
deliver housing for military veterans. We also strengthened the participation of cooperatives
“EMPOWERING WOMEN AND YOUTH
in our human settlements development programmes.
IN THE BUILT ENVIRONMENT REMAINS
AT THE CENTRE OF OUR PRIORITIES “
Z KOTA-FREDERICKS
Deputy Minister:
Department of Human Settlements
8 DHS ANNUAL REPORT 2016/2017