NORTH WEST DEPARTMENT OF HUMAN SETTLMENTS,

PUBLIC SAFETY AND LIAISON

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PRESENTED BY: Hon. Nono Maloyi (MPL)MEC Human Settlements, Public Safety and Liaison

PRESENTATION TO HUMAN SETTLEMENTS PORTFOLIO COMMITTEE

PURPOSE

• The purpose of this presentation is to:

– Provide the Chairperson and Honourable Members of the

Human Settlements Portfolio Committee with a comprehensive

report of the Portfolio Committee on Human Settlements visit

issues raised during the oversight visit

– Bring the attention of the Chairperson and Members of the

Human Settlements Portfolio Committee progress registered and

challenges encountered, lastly

– Outline issues that need to be attended to.

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• The HS Portfolio Committee’s visit was scheduled for the 17th

to the 22nd of June 2012.

• The oversight activity was to visit respective projects to assess

the state of delivery through in the province.

• And to oversee the success of the delivery agreement system

between Human Settlements and its delivery partners, to

promote and enhance the achievement of outcome 8.

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BACKGROUND

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PROGRESS RELATED TO ISSUES RAISED

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OUTCOME OF JOINT SESSION

National & Provincial Departments & Dr. Ruth Segomotsi Mompati District Municipality

OUTCOME OF JOINT SESSION

• Subsequent to the visit by the Portfolio Committee at Naledi LM

(ext.25),it was resolved that a meeting be scheduled between the

three (3) spheres of government with a view to address the issues that

relates to shoddy workmanship and illegal occupation.

• The Department, in trying to address the situation engaged NHBRC

• NHBRC agreed to take the matter up with the then appointed

Contractor by Naledi Local Municipality of which they will furnish the

Department with the progress.

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(a) 405 Invaded Units

(b) Illegal Occupation

• With regard to illegal occupation, the Department had on various

occasions, engaged with Naledi Local Municipality to institute

administrative and legal measures to correct the situation of which the

matter still remains unresolved.

• Whereas it remains the department’s commitment to resolve the

matter, the municipality remains the relevant authority to institute

necessary and required administrative/legal procedures

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PROGRESS ON TRANCHES AND SIU INVESTIGATIONS

• Tranche payments to the municipality amounted to R 8,316m.

• The total value under investigation stands at R7 561 225.31

• This amount relates to potential losses suffered by the department due to the

fact that the Turnkey Contractor utilized irregularly paid tranche payments

received for the construction of houses in Ba-Ga Phuduhucwana for the

construction of houses in Ba-Ga Maidi.

• Accordingly the company Director has since been arrested, charged and

currently on bail.

• Both criminal and civil proceedings continue. The developer as appointed was

M3D.

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(a) Ba-ga Phuduhucwana Project (360 Units)

(b) NALEDI LOCAL MUNICIPALITY Vryburg ext 25 & 28 (3000 UNITS)

• Tranche payments to the municipality was R86m.

• As per the latest SIU report the approximate value is R61m.

• The Naledi matter has since been referred to the Anti-Corruption

Task Team for further investigation and action.

• These amounts relate to non delivery by the developer and no

value could be found on site by the SIU in respect of this amount.

• The developer as appointed by Naledi Local Municipality was Khasu

Engineering

PROGRESS ON TRANCHES AND SIU INVESTIGATIONS

RECTIFICATION

• Preliminary investigations undertaken revealed that a total of 17

projects have been categorised for rectification.

• Detailed final assessments and costing of these projects shall be

undertaken by the National Department as the function is currently

their competence.

• In view of the above the department is responsible to identify areas of

intervention as well as allocate a budget not less than 10% of the total

conditional grant allocation, towards the implementation of the

programme.

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RECTIFICATION Cont….

Region/

Municipality/ProjectHouses

Rectifications

Total Budget

Units Budget

Bojanala 3 254 167 R 19,497,100 R 335 861 558.96

Head Office 250 R 154 852 679.28

Dr. Kenneth

Kaunda2 841 95 R 5 373,429.96 R 193 121 927.28

Ngaka Modiri

Molema2 288 326 R 27,033,523.00 R 220 290 327.72

Dr. Ruth Segomotsi

Mompati2 300 697 R 85,439,244 R 146 806 506.76

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2012/13 PLANNED DELIVERY PER REGION – Summary of the Business Plan

RPROVINCIAL HOUSING BACKLOG Source: North West Informal Settlements Upgrading Programme

• The NWISUP Database Project was conceptualised and initiated in 2007, in

support of the provincial mandate of eradicating informal settlements;

• The aim of the initiative was to investigate and establish the baseline of

informal settlements in the province, for purposes of informing programme

and project planning;

• It was envisaged that the project would produce accurate and reliable data,

required for the roll-out of upgrading projects in the province;

• Satellite imagery and GIS are utilised extensively in the project, to identify

and analyse informal settlements, as well as to map them with the

associated spatial data.

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FINDINGS

• A total of 140 informal settlements identified in the province;

• The total number of dwelling units / shacks / households in

informal settlements is estimated at over 77 600;

• Bojanala District municipality accounts for 70% (54 392) of

informal settlement households in the province;

• It is estimated that informal settlement households make up

the total population of over 310 500 in the province;

• The total geographic area covered by informal settlements is

approximately 1 771 hectares13

North West Informal Settlements Upgrading Programme2010 Status

• 42.3% of households are in the No Change status;

• 23% are in the Pre-Planning Studies;

• 19.8% are in the Planning Phase;

• 3.6% are in the Services Provision Phase; and

• 11.5% are associated with Top Structure Provision

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2007 Community Survey

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Region Houses

Ngaka Modiri Molema 33 379

Dr. Ruth Segomotsi Mompati 17 134

Dr. Kenneth Kaunda 64 456

Bojanala Platinum 122 911

Total 237 880

HOUSING TYPOLOGIES - VRYBURG EXT 25

• The contract as awarded was part of an intervention by the Department to resuscitate

the blocked project of 3000 Units which was initially implemented by Naledi Local

Municipality.

• Notably, the project did not go as planned and got blocked due to various reasons

relating to mismanagement of funds as well as lack of good project and contract

management practices by both the municipality and their appointed services provider.

• The above led to the project getting blocked and marked with challenges which then

led to the Department withdrawing its delegated powers to the municipality, taking

over the implementation of the project and appointing a competent service provider

hence the appointment of Toro Ya Africa Consultants (Pty) Ltd (as a capable

Contractor) to construct 1000 units and as part of Phase 1 un-blocking process.

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North West New Generation HouseNorth West New Generation House

04/21/23 17

North West New Generation HouseNorth West New Generation House

04/21/23 18

04/21/23 19

MUNICIPAL LAND AUDIT

• The department has entered into an agreement with the Housing Development Agency

(HDA) with a view to identify public and well located land to expedite housing delivery in

line with Outcome 8 deliverables.

• To date 259ha of land has been purchased in Ventersdorp Local Municipality.

• With the assistance of the HDA the department has planned to purchase another piece

of land in Coligny for this financial year.

• The aim of the purchase is to address the housing backlog in that area, particularly for

people who are residing on areas that are on a flood line.

• Currently the department received a report from the HDA indicating the transfer of

Farm Rietspruit 594 JQ to the Rustenburg Local Municipality for sustainable human

settlements purposes as well as Portion 48 of the Farm Klipgat 249 JQ to Madibeng Local

Municipality.

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ROOIGROND HOUSING PROJECT(1000 subsidies) B07060005

• The Mafikeng Local Municipality identified a need to provide housing at Rooigrond

• The department within its budgetary processes allocated 1000 subsidies in order to

address the above need and further appointed a contractor to implement the

project.

• During the process of implementation, the appointed contractor found it difficult to

proceed with the work whilst they were still at a planning stage as the community

was raising some issues with regard to certain decisions taken by the local

authority.

• The main issue being reasons as cited by the Correctional Services currently

occupying the portion of land adjacent land to the development area.

( security issues & building the development 500m away from the Prison)

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ROOIGROND HOUSING PROJECTCURRENT STATUS

• A meeting was initiated by the department and the municipality in

order to discuss the future developments in the area.

• During the meeting the department identified issues that needed

to be taken into consideration prior to the development taking

place and amongst others:– Land acquisition– Township establishment processes– Service analysis and provision– Construction of houses

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ROOIGROND HOUSING PROJECTCURRENT STATUS

• The project has been forwarded to Planning Unit within the

department to proceed with all necessary processes as well as

working with municipality and affected community for proper

implementation. Amongst other activities will be to request the

HDA to fast-track land acquisition.

• The undertaking by the Mafikeng Local Municipality is that the

decision to evict residents of Rooigrond will be revoked as a

means of intervention to stabilize the area. However, this position

is still to be served before the council.

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• The Department had an agreement with Tswaing Local Municipality which got blocked and was terminated due to poor-performance

• An agreement was entered into with a new contractor as an intervention to construct houses on vacant stands and to complete incomplete structures and services on the old project.

• The current status is that, the contractor completed 564 houses and 19 are outstanding (duplicate stand numbers were submitted) as 83 subsidies were transferred from Extension 3 to Extension 5.

• Some stands were affected by flooding and storm water management was approved as non-compliances were issued by NHBRC.

• The contractor is on site and a delivery programme is requested to complete. Built houses are complete and connected to the water-borne system.

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REPORT ON:Ottosdal : Letsopa Extension 5 housing project (500

subsidies) B04040002

• The Department initially had an agreement with Tswaing Local Municipality which got blocked due to lack of funding with regard to provision of required services.

• The department had to undertake the recompilation of the existing

geotechnical report as a requirement by the NHBRC in order to align it with the extended scope of work.

• All stands have been provided with the required internal services (water & sewer) with the geotechnical report expected to be finalized with the short space of time and be submitted to the department before end of July 2012.

• On receipt of the geotechnical report as stated above, houses with water borne system will be built on all identified and available erven

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REPORT ON:Sannieshof: Agisanang Extension 3 housing project (1000

subsidies) B04040004

• The above subsidies have been divided between Delareyville Ext 7 and Atamelang townships and are to be implemented within this financial year 2012/13.

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REPORT ON:

Delareyville: Delareyville Extension 7 (400 subsidies)

• A Bill of Quantities was never undertaken rather a status quo report stipulating areas of intervention was submitted to council.

• Currently the department is undertaking a detailed audit, utilizing amongst others, the above information collected by the municipality, on site visit as well the forensic audit undertaken by the NHBRC in 2007/2008.

• On completion of the above a bill of quantities will be commissioned be undertaken by the Quantity Surveyors to determine the costs

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REPORT ON:

35 Incomplete units - Swartruggens

STATUS• The Department entered into a development agreement with the

municipality for the construction of 1 621 Units as part of the PHP programme.

• Subsidy administration was undertaken where 1 621 applications were submitted and 1 383 beneficiaries approved

• 707 units have been completed. CHALLENGES

• Project was stopped in 2010 due to the absence of geotechnical investigations which was only completed in November 2011.

• Reconciliation of the tranche payments has not yet been completed.

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MOSES KOTANE PROJECTSSaulspoort Phase 1

STATUS• 500 applications submitted and 457 beneficiaries approved.• 355 units have been completed

CHALLENGES

• The project was also stopped due to geotechnical challenges and permission for construction was granted in March 2011.

• The tranche reconciliation for the project are incomplete

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MOSES KOTANE PROJECTSRamokokastad

STATUS• 1000 subsidy applications were submitted with 871

beneficiaries approved.• 168 houses have been completed in Mabele a Podi • 660 units complete

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MOSES KOTANE PROJECTSMogwase 1000

STATUS• 500 applications were submitted and 425 beneficiaries were

approved• 306 houses completed.

CHALLENGES

• Applicants who fail searches.

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MOSES KOTANE PROJECTSMabaalstad

• Land occupied belong to the municipality and classified as undevelopable and inhabitable due to its location next to a sewer plant.

• Approximately 200 households are residing within the area without the permission of the municipality.

• The municipality is planning to integrate qualifying beneficiaries to the project in that area i.e. Refentse, Sunway Project etc.

• In liaising with the municipality it was confirmed that none of the occupants pay rental.

• The non-qualifying residents will be advised to consider applying for other housing opportunities.

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POPO MOLEFE INFORMAL SETTLEMENTS

• The department was allocated a total amount of R15m towards the

end of the 2011/12 financial year aimed at disaster relief for

Madibeng, Greater Taung and Lekwa Teemane Local Municipalities.

• Of the R15m, R2, 739,893.12 was allocated to Madibeng to

undertake township establishment processes towards relocation of

the residents of Mooinooi currently residing within a floodline.

• The remainder was allocated to GTLM for construction of 263 units

and 111 units in Lekwa Teemane Local Municipality.

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DISASTER RELIEF PROGRAMME

• RHIP Grant is a Treasury Allocation fund under the Division of

Revenue Act (DoRA), aimed at assisting municipalities in

addressing sanitation backlogs in rural areas.

• MVULA Trust and Independent Development Trust (IDT) are

the implementing agents while Maxima Global Engineering

has been appointed by the department as the Program

Manager, to assist the provincial unit to administer the

program.

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SANITATION PROGRAMME

Rural Household Infrastructure Program (RHIP)

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SANITATION PROGRAMME

Municipality 2010-11 Target Units Completedunits

Service Provider Comments

Madibeng R9m 1000 00 IDT Moses Kotane R11m 1222 00 Mvula Trust Moretele R9 1000 00 IDT Ratlou R7 777 00 IDT Ramotshere-Moiloa

R7 777 00 IDT

Mamusa R7 777 00No appointment

The allocations have been re-tendered

Greater-Taung R7 777 00

Total 57m 6330 Allocation for the current financial has recently been confirmed by National Office on 13 June 2012.

PLANS TO SPEND – R57M)

NB: No expenditure has been incurred as consultation with municipalities is still ensuing to identify areas of need.

• North West Water Sector (NWWSF, MIG and Free Basic

Services Fora) are in an existence and meet quarterly.

• SALGA has been mandated by NWWSF to look into the

resuscitation District and Local Water & Sanitation Fora

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SANITATION PROGRAMME

Intergovernmental Relations

• Maxima Global Consulting was appointed by the National

Sanitation Programme Unit (NSPU) to support and project

manage the implementation of the Rural Household

Infrastructure Program (RHIP).

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The Role Of Maxima Consulting In The Province

THANK YOU

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