vote no. 11 annual report 2016/2017 financial year...flisp financed-linked individual subsidy...

VOTE NO. 11

ANNUAL REPORT

2016/2017 FINANCIAL YEAR

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Table of Contents

1. DEPARTMENT GENERAL INFORMATION .............................................................................. 5

2. LIST OF ABBREVIATIONS/ACRONYMS .................................................................................. 6

3. FOREWORD BY THE MEC ....................................................................................................... 8

4. REPORT OF THE ACCOUNTING OFFICER .......................................................................... 11

5. STATEMENT OF RESPONSIBILITY AND CONFIRMATION OF ACCURACY FOR THE ANNUAL REPORT ....................................................................................................................... 16

6. STRATEGIC OVERVIEW ......................................................................................................... 17

6.1 Vision ................................................................................................................................ 17

6.2 Mission .............................................................................................................................. 17

6.3 Values ............................................................................................................................... 17

7. LEGISLATIVE AND OTHER MANDATES ............................................................................... 18

8. ORGANISATIONAL STRUCTURE .......................................................................................... 21

9. ENTITIES REPORTING TO THE MINISTER/MEC ................................................................. 21

1. AUDITOR GENERAL’S REPORT: PREDETERMINED OBJECTIVES ................................... 23

2. OVERVIEW OF DEPARTMENTAL PERFORMANCE ............................................................. 23

2.1 Service Delivery Environment .......................................................................................... 23

2.2 Service Delivery Improvement Plan ................................................................................. 25

2.3 Organisational environment .............................................................................................. 26

2.4 Key policy developments and legislative changes ........................................................... 26

3. STRATEGIC OUTCOME ORIENTED GOALS ........................................................................ 27

4. PERFORMANCE INFORMATION BY PROGRAMME ............................................................ 29

4.1 Programme 1: Administration ........................................................................................... 29

4.2 Programme 2: Integrated Sustainable Human Settlements ............................................. 35

4.3 Programme 3: Cooperative Governance ............................................................................ 48

4.4 Programme 4: Traditional Affairs ........................................................................................ 61

5. TRANSFER PAYMENTS ................................................................................................................. 64

6. CONDITIONAL GRANTS ................................................................................................................. 64

6.1. Conditional grants and earmarked funds paid .................................................................. 64

6.2. Conditional grants and earmarked funds received ........................................................... 64

7. DONOR FUNDS ....................................................................................................................... 65

7.1. Donor Funds Received ..................................................................................................... 65

8. CAPITAL INVESTMENT .......................................................................................................... 65

8.1. Capital investment, maintenance and asset management plan ....................................... 65

1. INTRODUCTION ...................................................................................................................... 67

2. RISK MANAGEMENT............................................................................................................... 67

3. FRAUD AND CORRUPTION ................................................................................................... 67

4. MINIMISING CONFLICT OF INTEREST ................................................................................. 68

5. CODE OF CONDUCT .............................................................................................................. 68

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6. HEALTH SAFETY AND ENVIRONMENTAL ISSUES ............................................................. 69

7. PORTFOLIO COMMITTEES .................................................................................................... 69

8. SCOPA RESOLUTIONS .......................................................................................................... 69

9. PRIOR MODIFICATIONS TO AUDIT REPORTS .................................................................... 79

10. INTERNAL CONTROL UNIT .................................................................................................... 79

11. INTERNAL AUDIT AND AUDIT COMMITTEES ...................................................................... 79

11.1 INTERNAL AUDIT ............................................................................................................. 79

11.2 AUDIT COMMITTEES ...................................................................................................... 81

1. INTRODUCTION ...................................................................................................................... 89

2. OVERVIEW OF HUMAN RESOURCES .................................................................................. 89

3. HUMAN RESOURCES OVERSIGHT STATISTICS ................................................................ 91

1. REPORT OF THE AUDITOR GENERAL ............................................................................... 130

2. ANNUAL FINANCIAL STATEMENTS .................................................................................... 136

1. Annual Appropriation .......................................................................................................... 176

2. Statutory Appropriation ....................................................................................................... 176

3. Departmental revenue ........................................................................................................ 177

4. Compensation of employees .............................................................................................. 178

5. Goods and services ............................................................................................................ 179

6. Interest and rent on land ..................................................................................................... 180

7. Payments for financial assets ............................................................................................. 180

8. Transfers and subsidies ..................................................................................................... 181

9. Expenditure for capital assets ............................................................................................ 181

10. Cash and cash equivalents ................................................................................................ 181

11. Prepayments and advances ............................................................................................... 182

12. Receivables ........................................................................................................................ 182

13. Voted funds to be surrendered to the Revenue Fund ........................................................ 184

14. Departmental revenue and NRF Receipts to be surrendered to the Revenue Fund ....... 184

15. Payables – current .............................................................................................................. 184

16. Net cash flow available from operating activities ................................................................ 185

17. Reconciliation of cash and cash equivalents for cash flow purposes ................................ 185

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PART A: GENERAL INFORMATION

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1. DEPARTMENT GENERAL INFORMATION

PHYSICAL ADDRESS: 20 Rabe Street

Polokwane

0699

POSTAL ADDRESS: Private Bag X9485

Polokwane

0700

TELEPHONE NUMBER/S: +27 15 284 5000

FAX NUMBER: +27 15 293 1520

EMAIL ADDRESS: [email protected]

WEBSITE ADDRESS : www.coghsta.limpopo.gov.za

mailto:[email protected]

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2. LIST OF ABBREVIATIONS/ACRONYMS

AFS Annual Financial Statements

AGSA Auditor General of South Africa

BBBEE Broad Based Black Economic Empowerment

CDP Community Development Programme

CDW Community Development Worker

CFO Chief Financial Officer

CIGFARO Chartered Institute of Government Finance Audit and Risk Officers

CoGHSTA Cooperative Governance Human Settlements and Traditional Affairs

CONTRALESA Congress of Traditional Leaders of South Africa

CRU Community Residential Units

DDG Deputy Director General

DORA Division of Revenue Act

EAP Employee Assistance Programme

EU European Union

EXCO Executive Council

FLISP Financed-Linked Individual Subsidy Programme

FY Financial Year

GITO Government Information Technology Office

HDA Housing Development Agency

HOD Head of Department

HSDG Human Settlements Development Grant

HSS Housing Subsidy System

IDP Integrated Development Plan

IGR Intergovernmental Relations

IP Internet Protocol

IRDP Integrated Residential Development Programme

ISHS Integrated Sustainable Human Settlements

LED Local Economic Development

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LUMS Land Use Management Scheme

MEC Member of the Executive Council

MIG Municipal Infrastructure Grant

MPAC Municipal Public Accounts Committee

MTEF Medium Term Expenditure Framework

NDoHS National Department of Human Settlements

NHFC National Housing Finance Corporation

NUSP National Upgrading Support Programme

PFMA Public Finance Management Act

PGP Provincial Growth Points

PMU Project Management Unit

POA Programme of Action

SISP Strategic Information Systems Plan

SDF Spatial Development Framework

SCM Supply Chain Management

SMME Small Medium and Micro Enterprises

SAIGA Southern African Institute of Government Auditors

SCOPA Standing Committee on Public Accounts

SDIP Service Delivery Improvement Plan

SIU Special Investigations Unit

SITA State Information Technology Agency

SLA Service Level Agreement

SPLUMA Spatial Planning and Land Use Management Act

TR Treasury Regulations

USDG Urban Settlement Development Grant

CWP Community Works Programme

WSP Workplace Skills Plan

3. FOREWORD BY THE MEC

Ms. MG Makhurupetje

Member of the Executive Council

The Annual Report serves as a

representation of the sum total of

accomplishments recorded in the

department towards fulfilling

commitments entailed in the Annual

Performance Plan (APP). We present

the 2016/17 Annual Report of the Department of Cooperative Governance,

Human Settlements and Traditional Affairs at a time when the overall

performance of the department is on a higher trajectory.

Working together with our people we have recorded many successes in

providing a better life for all. Amongst the achievements scored during the

period under review include the filling of a position of Head of Department

and other senior management posts. We have in overall filled 57 vacant

posts at various levels of the organizational structure. This has seen the

reduction of the vacancy rate from 5.2% in March 2014 to 3.23% in March

this year. Women representation has also seen an improvement at all

levels from 55% during 2015/16 to 56% during 2016/17 financial year.

In an endeavour to enhance the control environment and improve

corporate governance in the department, the following policies were

reviewed: Internet Protocol (IP) Address Management Policy; ICT Firewall

Policy; Leave of Absence Management Policy; Lost and Damaged

Management Policy and Service Excellence Awards Policy.

We continue to resolve 100% of all cases brought to the department

through the Presidential and Premier Hotlines. This makes CoGHSTA one

of the best departments in this area of performance. During the 2016/17

financial year, the department maintained its commitment to pay all

undisputed invoices within the stipulated timeframe of 30 days. This was

done with a view to ensure that Service Providers especially emerging

businesses do not encounter cash flow challenges.

Apart from receiving an unqualified audit opinion, the Department is

steadily moving with speed to reclaim back its status as a Multi-Award

Winning Department. This is evidenced by the number of awards scooped

during 2016/17. Amongst some of the accolades received include; the

PMR Africa Diamond Arrow Award for the best service delivery

department in the province; the SITA GovTech ICT Best Youth in ICT and

Service Delivery and Transformation Awards; the Best Provincial

Department Supporting Municipalities to Achieve Clean Audit (2015/16)

from the Chartered Institute of Government Finance Audit and Risk

Officers (CIGFARO); the Premier Service Excellence Awards for the Best

Support Team of the year Award and the Best Innovation Team in Gold

and lastly the Govan Mbeki award for the Best Rural Housing project in

South Africa.

Human Settlements

Chapter 2 of the Bill of Rights in our Constitution clearly articulates the

right of everyone to have access to adequate housing which the State

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must progressively realize within available means and resources. The

department is doing its utmost to provide decent shelter to the people of

Limpopo through programmes such as Rural housing, FLISP, Military

veterans housing, Disaster housing and EPHP housing. The business plan

target for housing units for 2016/17 is (8998 units) plus (3982 units) for

2015/16 financial year.

A total of 10,527 new housing units were delivered and 4,067 sites against

a target of 8,998 units and 4850 sites respectively. This translates to

14,594 housing opportunities delivered against a target of 13,848 for the

financial year thus the performance is 105%.

Cooperative Governance

The vision of developmental local government, as outlined primarily in the

1998 White Paper on Local Government was that it would be the building

block on which the reconstruction and development of society is built, a

place in which the citizens could engage in a meaningful and direct way

with the institutions of the state. It is on this basis that having functional,

well-governed and well-capacitated municipalities become a priority.

Following the holding of successful Local government elections on 03

August 2016, measures were put in place to ensure that all municipalities

are duly constituted including in areas governed by coalitions. Working

together with SALGA, the department ran successful Councilor Induction

Programme, as part of the capacity building of Councilors.

Early in 2017, CoGHSTA hosted a successful Local Government Summit

which developed a five year multi sectoral agenda and Action plan for all

municipalities in the province. The Action plan seeks to localise the Back

to Basic Programme of local government to the most basic level of

governance which is the Ward committee. Some of the key resolutions

emanating from the Summit include amongst others:

Alignment of municipal water master plans to the Limpopo Water

Master Plan and the enhancement of capacity in water and waste

water management.

Ring fencing of 10% of budget for operations and maintenance.

Development of energy master plans and by-laws in line with the

land-use demand/service contributions, and the;

Alignment of the municipal plans with the provincial road master

plan.

Arising from these resolutions emerged a comprehensive plan of

supporting and monitoring municipalities based on our “Back to Basic”

Programme. The plan is being implemented as part of measures to ensure

that municipalities honour their legislative obligations.

Traditional Affairs

Chapter 12 of our Constitution recognizes the existence of traditional

leadership as an institution that holds custodianship over matters of

culture, custom, tradition and heritage. The current term of office of the

fourth Provincial House and Local Houses of Traditional leaders will be

coming to an end by May this year. When the fourth House of Traditional

leaders took office back in 2012, there were a lot of challenges which they

had to contend with. Amongst these include the following: Lack of

vehicles; appointment of Headman and Headwomen; Lack of staff in

traditional council offices; lack of office space for the members of the

Provincial House; lack of support from government during funerals of

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senior traditional leaders; determination of allowances for members of

local Houses; absence of a policy on Headmanship.

After five years of the House’s term of office, significant strides were made

in resolving a number of challenges. Of the (26) Traditional leadership

disputes referred to the House (21) cases were finalized. Other successes

of the House since 2012 include the following: Procuring of 175 vehicles

out of the target number of 185; striking reduction in the number of deaths

during initiation season; continuous building and refurbishment of offices;

appointment of staff in traditional council offices which has started;

Increase of funeral allowance from R30 000 to R50 000; the development

and conceptualization of the provincial SPLUMA Bill which is now ready to

become law; appointment of Headmen and women which is ongoing; and

the reestablishment of CONTRALESA new executive committee in the

province.

The department would like to build more capacity in supporting the work of

traditional leadership in the province going forward. This is evidenced by

measures we are putting in place to ensure that Traditional Councils are

reconstituted and offices of Traditional councils are refurbished. In the

2017/18 financial year we have allocated an amount of R42 million for the

purpose of reconstituting Traditional Councils, King and Queen Councils

included. Other outstanding matters to be dealt with by the incoming

executives of the Provincial and Local Houses relate to the development of

a policy on Headmanship; and the finalization of the Bill on Initiations

schools.

Our commitment to the people of Limpopo remains the same as it was

when the ANC led government took office in 1994. Our resources both

human and capital remain committed to the better life for all our people.

We call on everyone to join us in putting shoulders to the wheel in order to

move Limpopo forward.

I, Makoma Grace Makhurupetje, Member of the Executive Council for the

Department of Cooperative Governance, Human Settlements and

Traditional Affairs, hereby presents the 2016/17 Annual Report to the

people of Limpopo.

Ms. MG Makhurupetje MEC of the Department of Co-operative Governance, Human Settlements and Traditional Affairs Date: 31 July 2017

4. REPORT OF THE ACCOUNTING OFFICER

The performance of the Department in its efforts to fulfil its constitutional

mandate and its vision for integrated, sustainable human settlements in

line with outcome 8, 9 and 12 outlines the overview of the operations of

the department. The department has recorded significant progress on

improving financial management in municipalities through continuous

capacitation initiatives as well as monitoring and evaluation of this

important sphere of government. In support to initiatives of job

opportunities created, the province has received additional funding from

CoGTA on CWP, which provided about 25 000 job opportunities to

participants.

The institutions of Traditional Leadership have been supported through

coordination of stakeholders to participate in the initiation schools

management. Additional compensation for Traditional Leaders has been

streamlined with the pronouncement made by the President.

Human settlements sector has had its fair share of challenges for the past

two financial years. However the department has turnaround the situation

to ensure that services are delivered to the people of Limpopo as

expected.

The system of governance and accountability has matured in the

department, which is congruent to the expectations by the public at large.

This is credited to the management team of the department as well as

oversight institutions who quality check the departments’ obligations

initiatives regularly.

Annual Report for 2016/17 Financial Year Vote 11: Department of CoGHSTA

Province of Limpopo

12

Overview of the financial results of the department:

Departmental receipts

Departmental receipts

2015/2016 2016/2017

Estimate Actual Amount

Collected

(Over)/Under Collection

Estimate

Actual Amount

Collected

(Over)/Under Collection

R’000 R’000 R’000 R’000 R’000 R’000

Sale of goods and services other than capital assets

1 317 1,638 (320) 1,217 1,363 (146)

Transfers received

- 15,709 (15,709) - 80 (80)

Interest, dividends and rent on land

2,446 15,999 (13,552) 2,868 4,816 (1,948)

Sale of capital assets

395 638 (243) 425 975 (550)

Financial transactions in assets and liabilities

1,444 2,005 (561) 1,569 1,481 88

Total 5,602 35,989 (30,385) 6,079 8,715 (2,636)

The Departmental revenue estimate for the year under review amounted

to R6.079 million and actual collection amounted to R8.715 million

resulting in an over collection by R2.636 million. The over collection is

largely attributable to interest earned from the Trust Account of the

attorneys who assisted the department with land purchase processes. The

Department sold old assets that were no longer economical to maintain

through an auction.

Revenue Tariff policy

The department made use of transversal tariffs as determined and

approved by the Provincial Treasury.

Free service rendered

There were no free services rendered by the department that would have

yielded significant revenue had a tariff been charged.

Irrecoverable debts written off

A total amount of R16 million in respect of Fruitless and Wasteful

expenditure as a result of blocked projects identified during 2007/08

financial year was written off as irrecoverable during the year under review

in terms of the transversal debt management policy approved by the

Provincial Treasury.

Programme Expenditure

Programme Name

2015/2016 2016/2017

Final

Appropriation

Actual

Expenditure

(Over)/ Under

Expenditure

Final

Appropriation

Actual

Expenditure

(Over)/Under

Expenditure

R’000 R’000 R’000 R’000 R’000 R’000

Administration 305 393 299 584 5 809 361 496 356 213 5 283

Human Settlements 1 699 428 1 234 023 465 405 1 724 497 1 637 118 87 379

Co-operative

Governance

242 942 240 738 2 204 279 576 275 121 4 455

Traditional

Institutional

Development

441 851 411 339 30 512 448 245 411 186 37 059

Total 2 689 614 2 185 684 503 930 2 813 814 2 679 445 134 176


Province of Limpopo

13

The Department spent R 2.180 billion in 2014/15 (which represented

85.9%), in 2015/16 spent R1.525 billion of R1.766 of the total allocation of

R2.690 billion (which represented 81%). In the year under review the

Department expenditure amounted to R2.680 billion or 95% of the total

budget allocation of R2.814 billion which shows an underspending of 5%.

The underspending is mainly as a result of the following:

Under-performance by some of rural housing contractors,

scattered development areas, difficult terrain and inclement

weather affected the delivery of Housing projects negatively.

Delay in procurement processes affected the purchase of Laptops

for Community Development Workers in Co-operative

Governance.

The planning processes between the Department and

Implementing agent (Department of Public Works) took longer

than anticipated and affected the implementation of Traditional

Councils’ offices refurbishment programme. Purchase of furniture

for Traditional Council offices could not be finalised in time.

Virements/roll overs

2016/17

Programme

Adjusted

appropriation

VIREMENT

REVISED

BUDGET

% R thousand

1. Administration 357,056 4,440 361,496 1%

2.Human

Settlements

1,729,492 (4,995) 1,724,497 0%

3. Cooperative

Governance

287,705 (8,129) 279,576 -3%

4.Traditional

Institutional

Development

439,561 8,684 448,245 2%

Total 2,813,814 - 2,813,814 0%

One virement was approved by Provincial Treasury after Budget

Adjustment process. The virement was mainly done to address shortfall on

leave gratuity, writing off of fruitless expenditure and other irrecoverable

debts that were approved for write off during the 2014/15 financial year as

well as addressing the shortfall transport costs linked to project

management activities under Human Settlements.

Rollover application totalling R121 million has been submitted to Provincial

Treasury for both Conditional Grants (Human Settlements Grant – R85

million) and Equitable Share (Traditional Council refurbishment, purchase

of furniture for Traditional Council offices and Laptops for Community

Development Workers – R36 million).

Unauthorised, fruitless and wasteful expenditure

The Department did not incur any unauthorised expenditure during the

2016/17 financial year as disclosed in the Annual Financial Statements.

Fruitless and wasteful expenditure amounting to R108 687 000 was


Province of Limpopo

14

incurred and is disclosed in the note to the financial statements. Details of

the fruitless expenditure are disclosed in the Annual financial Statements.

Future plans of the department

Regular monitoring of service providers to ensure compliance with the

service contracts with the Department.

Public Private Partnerships

The Department did not enter into any Public Private Partnerships in the

previous financial years as well the current financial year.

Discontinued activities / activities to be discontinued

The Department did not discontinue any activities during the financial year

under review and there are no plans to discontinue any activities.

New or proposed activities

There were no new or proposed activities.

Supply chain management

No procurement was done through unsolicited bid proposals

during the year under review

The SCM processes and systems are in place to prevent

irregular expenditure and there is a strict adherence to the

legislations and policies

No Challenges experienced in SCM.

Gifts and Donations received in kind from nonrelated parties

None.

Exemptions and deviations received from the National Treasury

No exemptions and deviations were received from the National Treasury

Public Private Partnerships

The Department did not enter into any Public Private Partnerships in the

previous financial years as well the current financial year.

Events after the reporting date

There were no events (adjusting and non-adjusting), favourable and

unfavourable that occurred after the reporting date and the date of

approval of the Annual Financial Statements

Other

The Department has done away with the maintenance and management

of Assets register by means of excel spreadsheets and is currently using

BAUD system as required by Provincial Treasury and EXCO.

Challenges with filling of posts

Budget constraints which affected finalisation of the recruitment processes

in respect of advertised posts

Payment of PMDS

Payment of performance bonuses for employees on salary level 1 – 12

has been finalised. However payments for employees on level 13 and

upwards will be concluded in the next financial year.


Province of Limpopo

15

Relations with Organised labour

The department is in the upward spiral to ensure the well-being of

its employees for effective service delivery. This can only be

attained by continually strengthening the relationship between

Management and Organized Labour.

The Department continues to enjoy a prolific relationship with the

two Unions: NEHAWU and PSA. Our relationship created a culture

of legitimacy and fairness and the acceptance of co-dependence

on, and respect for each other.

Municipal Boundary Determinations for Limpopo Province

The redetermination of municipal boundaries, and the subsequent local

government elections on the 03 August 2016 led to a reduction of

municipalities in the Province from thirty to twenty seven. The number of

local municipalities has been reduced from twenty five to twenty two due to

the disestablishments and amalgamations. A new municipality was also

formed in the Vhembe District. These changes have resulted in deviations

from the planned and the achieved targets in so far as municipalities are

concerned.

Mosehana NR

Accounting Officer

Department of Co-operative Governance Human Settlements and

Traditional Affairs

Date: 31 May 2017


Province of Limpopo

16

5. STATEMENT OF RESPONSIBILITY AND CONFIRMATION OF ACCURACY FOR THE ANNUAL REPORT

To the best of my knowledge and belief, I confirm the following:

All information and amounts disclosed throughout the annual report are consistent.

The annual report is complete, accurate and is free from any omissions.

The annual report has been prepared in accordance with the guidelines on the annual report as issued by National Treasury.

The Annual Financial Statements (Part E) have been prepared in accordance with the modified cash standard and the relevant frameworks and

guidelines issued by the National Treasury.

The Accounting Officer is responsible for the preparation of the annual financial statements and for the judgements made in this information.

The Accounting Officer is responsible for establishing, and implementing a system of internal control that has been designed to provide reasonable

assurance as to the integrity and reliability of the performance information, the human resources information and the annual financial statements.

The external auditors are engaged to express an independent opinion on the annual financial statements.

In my opinion, the annual report fairly reflects the operations, the performance information, the human resources information and the financial affairs

of the department for the financial year ended 31 March 2017.

Yours faithfully

Accounting Officer

Mosehana NR

Date: 31 May 2017


Province of Limpopo

17

6. STRATEGIC OVERVIEW

6.1 Vision

Integrated Sustainable Human Settlements

6.2 Mission

To be an effective agent of change that delivers quality services to citizens

of Limpopo through:-

Promoting developmental cooperative governance,

Supporting municipalities and Traditional Leadership Institutions,

and

Optimally deliver integrated and sustainable human settlements

6.3 Values

Our values are underpinned by the Batho Pele Principles.

Service Excellence:

We shall strive to attain recognized standards of service quality, and mainta

in continuous improvement in service delivery.

Innovation:

We shall toil in the pursuit of excellence and innovation on the use of

information and

communication technology to enhance public service delivery.

Integrity:

We shall conduct our business with integrity at all times to inculcate a cultu

re of honesty and accountability among all our employees.

Prudence:

We shall exercise prudence and economy in running the business of the

Department and in

pursuance of its goals and the objectives of government.

Transparency:

We shall always ensure transparency in everything we do in order to build

trust and confidence with all our stakeholders.

Fairness and consistency:

We shall treat all our beneficiaries, suppliers and employees with fairness

and equity at all times.

Professionalism

We shall ensure that employees demonstrate high level of professionalism when interacting with all stakeholders


Province of Limpopo

18

7. LEGISLATIVE AND OTHER MANDATES

Constitutional Mandates

Section of the Constitution

Direct responsibility in ensuring compliance

Chapter 2, section 26

This section puts direct responsibility on the Department in ensuring that everyone has access to adequate housing, which is carried out through the ISHS programme

Chapter 7, section 154

The section directs the Provincial Government to support and strengthen the capacity of municipalities to manage their own affairs, to exercise their powers and to perform their functions.

Legislative Mandates

Relevant Act Key Responsibilities

A. Public Service

Act of 1994 (as

amended) and

Regulations

To provide for the organization and

administration of the public service of the

Republic, the regulation of the conditions of

employment, terms of office, discipline,

retirement and discharge of members of the

public service.


B. Public Finance

Management Act

1 of 1999 (as

amended) and

Regulations

To regulate financial management in the

national government and provincial

government, to ensure all revenue,

expenditure, assets and liabilities of the

government are managed efficiently.

C. Municipal

Finance

Management Act

of 2003 (as

amended)

To secure sound and sustainable

management of the financial affairs of

municipalities and other institutions in the

local sphere of government.

D. Division of

Revenue Act of

2012 (as

amended).

Section 214(1) of the Constitution requires

that every year a Division of Revenue Act

determine the equitable division of nationally

raised revenue between national

government, the nine provinces and 278

municipalities. This budget process takes

into account the powers and functions

assigned to each sphere of government.

The division of revenue process fosters

transparency and is at the heart of

constitutional cooperative governance.

E. Housing Act of

1997

The Department in consultation with

provincial organization must do everything in

its power to promote and facilitate the

provision of adequate housing in its province

within the framework of the national housing


Province of Limpopo

19


policy.

F. Local

Government

Municipal

Structures Act of

1998

The MEC for local government in a province,

by notice in the Provincial Gazette must

establish a municipality in each municipal

area which the Demarcation Board

demarcates in terms of the Demarcation Act.

G. Local

Government

Municipal

Systems Act of

2000

The MEC for local government in the

province may, subject to any other law

regulating provincial supervision of local

government, assist a municipality with the

planning, drafting, and adoption of mid

review of its 5 year integrated development

plan.

H. Disaster

Management Act

2002

To provide for- an integrated and

coordinated disaster management policy

that focuses on preventing or reducing the

risk of disasters, mitigating the severity of

disasters, emergency preparedness, rapid

and effective response to disasters and

post-disaster recovery;

the establishment of national, provincial and municipal disaster management centres;

disaster management volunteers; and


matters incidental thereto.

I. Development

Facilitation Act of

1995

To facilitate and speed up the

implementation of reconstruction and

development programmes and projects in

relation to land; and in so doing, to lay down

general principles governing land

development throughout the Republic.

J. Municipal

Systems Act of

The MEC for local government in the

province may, subject to any other law

regulating provincial supervision of local

government, assist a municipality with the

planning, drafting, and adoption of mid

review of its 5 year integrated development

plan.

K. Municipal

Structures Act of

The MEC for local government in a province,

by notice in the Provincial Gazette must

establish a municipality in each municipal

area which the Demarcation Board

demarcates in terms of the Demarcation Act.

L. Spatial

Planning and

Land Use

Management Act,

2013

To provide a framework for spatial planning

and land use management in the Republic;

and to specify the relationship between the

spatial planning and the land use

management system and other kinds of


Province of Limpopo

20


planning.

M. Traditional

Leadership and

Governance

Framework Act

No.41 of 2003.

To provide for the recognition of traditional

communities; to provide for the

establishment and recognition of traditional

councils as well as providing for a statutory

framework for leadership positions within

institutions of traditional leadership.

N. Limpopo

Traditional

Leadership and

Institutions Act

No.6 of 2005

To provide for the recognition of traditional

communities; the recognition of traditional

councils, the election and appointment of

members of traditional councils, recognition

of traditional leaders, their removal from

office, their roles and functions, recognition


of acting traditional leaders and regents, to

provide for funds of traditional councils and

management thereof; to provide for payment

of allowances for travelling expenses of

members of traditional councils; to provide

for meetings of royal family and traditional

councils; to provide for code of conduct; and

for matters connected therewith.

8. ORGANISATIONAL STRUCTURE

9. ENTITIES REPORTING TO THE MINISTER/MEC

None

PART B: PERFORMANCE INFORMATION


Province of Limpopo

23

1. AUDITOR GENERAL’S REPORT: PREDETERMINED OBJECTIVES

The AGSA currently performs certain audit procedures on the performance

information to provide reasonable assurance in the form of an audit

conclusion. The audit conclusion on the performance against

predetermined objectives is included in the report to management, with

material findings being reported under the Predetermined Objectives

heading in the Report on other legal and regulatory requirements section

of the auditor’s report.

Refer to page 130 of the Report of the Auditor General, published as Part

E: Financial Information.

2. OVERVIEW OF DEPARTMENTAL PERFORMANCE

2.1 Service Delivery Environment

The department of Co-operative Governance, Human Settlements and

Traditional Affairs is mandated of ensuring that citizens of province have

appropriate housing, municipalities are supported in delivering variety of

services to communities, promoting co-operative governance and

providing support to traditional leaders and communities under their

jurisdiction.

2.1.1 Human Settlements

The Human Settlements Development is charged with the responsibility of

ensuring formalization of informal settlement, building of low cost houses,

registration of title deeds, acquisition of land for human settlement and

facilitation of municipal accreditation processes. In the past financial year

the department has built 2 125 houses in (2014/15), 8 588 in 2015/16 and

the year under review has managed to build 10 741 houses across all

housing Programmes

Human Settlements Development Grant budget allocation for 2016/17 is

R1, 603,212,400 including rollover of R394 842 00. Total spending on

Conditional Grant as at 31 March 2017 amounted to R1, 518,243,737.37

out of the total budget of R1, 603,212,400 budget which translates to 95%.

2.1.2 Co-operative Governance

In the 2016/17 financial year the Municipal Demarcation Board finalised

the process of reconfiguration Municipalities in the province. The board on

the 10th August 2016 recommended for the disestablishment of Aganang

and Mutale municipalities in the Capricorn and Vhembe Districts

respectively, Merging of Mookgophong and Modimolle, Tubatse and

Fetakgomo municipalities in the Waterberg and Sekhukhune districts and

a new municipality in the Vhembe District was established being Lim 345.

The process of disestablishment and creation of municipalities affected the

2016/17 Annual Performance Plan whereby local municipalities were

reduced from 25 to 22, District Municipalities remained at 5 and as a result

the province has a total of 27 from 30 municipalities. As a result, all

municipalities affected by the transition process were allocated transitional


Province of Limpopo

24

conditional grants for a period two financial years to assist with

administration processes.

The department continues to provide support municipalities with regard to

appointment and retention of critical section 54A and 56 Managers posts

in line with the Municipal Systems Act regulations. The table below reflect

the status of Municipal Administration vacancies of Senior Managers at

end March 2017.

Vacant managers

category

Municipalities

Municipal Managers Lim 345, Mopani, Vhembe, Musina, Ba-

Phalaborwa, Greater Giyani, Polokwane,

Lepelle-Nkumpi, Capricorn, Thabazimbi,

Mogalakwena and Blouberg

Chief Financial

Officers

LIM 345, Vhembe, Thulamela, Thabazimbi,

Mogalakwena, Lephalale, Polokwane, Bela-

Bela, Capricorn, Greater Giyani, LIM 368 and

Sekhukhune

Technical Services

Managers

Lepelle-Nkumpi, Vhembe, LIM 345, Mopani,

Greater Letaba, Mogalakwena, Thabazimbi

Polokwane and LIM 476 and Musina

Community Services LIM 368, LIM 345, Bela-Bela, Thulamela,

Molemole, Makhuduthamaga, Polokwane,

Greater Giyani and Thabazimbi

Corporate Services Bela-Bela, LIM 345, LIM 368, Musina,

Vhembe, Ephraim Mogale, Greater Tzaneen,

Greater Giyani, Maruleng, Mogalakwena and

Vacant managers

category

Municipalities

Thabazimbi.

Development and

Planning

LIM 345, Thulamela, Mogalakwena, LIM 368,

Makhuduthamaga, Ephraim Mogale,

Polokwane, Greater Giyani, Greater Giyani

and Blouberg

The department provides continuous support to municipalities on

enhancing public participation and municipal finance through ward

committee systems which out 566 ward committees, 522 are fully

established and 64 are still outstanding. In the municipal programme the

department has conducted AFS readiness assessments whereby 27

municipalities managed to submit AFS to Auditor General for auditing

purposes with exception of Mutale, Mogalakwena and Thabazimbi due to

strikes and assets attachments respectively.

Municipal Infrastructure Grant (MIG) is the largest share of transfers to

municipalities aimed at supporting the government’s objective of

expanding service delivery. In the 2016/17 financial year, municipalities

were allocated R3.127 billion and as at end of March 2017, 63% of the

allocated budget was spent.

2.1.3 Traditional Affairs

Traditional leaders continue to playing an important role in the

development and growth communities in the province. Traditional councils are provided with administrative support that include payment of salaries,

provision of tools of trade, furniture and conducting workshops for


Province of Limpopo

25

traditional surgeons and protocol. In the period under review, the

department has managed to purchase furnisher for King Mphephu

Ramabulana staff members, 185 cell phone contracts for traditional leader

were also paid and purchase of cars for traditional leaders.

The Department is still overwhelmed with problems of Traditional

Leadership Claims and Disputes that resulted to the establishment of the

Kgatla Commission in 2012 mandated to management of claims. The

commission since its establishment it has finalised 416 of 551 cases

received, 50 cases are on report phases and to date Premier has made

determination on 293 cases.

Management of initiation schools in the province remains to be of high quality mainly through fortified relations with relevant patrons. The province has successfully recorded the lowest recoded deaths of initiates whereby most deaths have been recoded from the unregistered initiation schools.

2.2 Service Delivery Improvement Plan

The department has completed a service delivery improvement plan. The

tables below highlight the service delivery plan and the achievements to date.

Main services and standards

Main services

Beneficiaries Current/actual standard of

service

Desired standard

of service

Actual achievement

Number of

housing

stock/RDP

rectified

RDP house

dwellers

60 500 286

Main services

Beneficiaries Current/actual standard of

service

Desired standard

of service

Actual achievement

Number of

rental

units built

Hostel

dwellers

0 150 0

Batho Pele arrangements with beneficiaries (Consultation access etc.)

Current/actual arrangements

Desired arrangements

Actual achievements

Community Participation

4 Imbizo’s 2 Imbizo’s

Service delivery information tool

Current/actual information tools

Desired information tools

Actual achievements

CoGHSTA news, brouchers

Print media, electronic media

Newsletters, Post, Departmental

Complaints mechanism

Current/actual complaints mechanism

Desired complaints mechanism

Actual achievements

Departmental, presidential, departmental hotlines, walk-ins, [email protected]

99% resolved

Queries resolved within 30 days

SMS communication with complainants and applicants

100% resolved.

Challenges

Insufficient budget to implement the project of SMS complaints


Province of Limpopo

26

2.3 Organisational environment

The Department has managed to fill the strategic posts during the year which include the post of the Accounting Officer/HOD and Deputy Director-General: Cooperative Governance and Traditional Affairs. The appointments would assist in ensuring accountability and management stability in the Department.

The Department is however still experiencing a challenge of filling posts at an operational level and more especially in the Traditional Council offices where there is high turn-over due to retirement of most of the employees. The CFO is seconded to the Department of Education and acting CFO is appointed.

Summary of SMS staff establishment

Category Total posts on

establishment

Total posts

graded/funded

Total posts

filled

% of filled

posts

Directors 46 44 graded and

met the grade,

02 didn’t meet

the expected

grade (13) and

waiting for

review from

Office of the

Premier.

40 91%

Category Total posts on

establishment

Total posts

graded/funded

Total posts

filled

% of filled

posts

Chief

Directors

17 15 graded and

met the grade,

02 did not meet

the expected

grade (14) and

awaiting for

review from

Office of the

Premier.

13 87%

DDG’s and

above

5 5 5 100%

Total 68 64 58 91%

During the year under review provincial of Treasury has issued requirements for filling of vacant funded which prolongs the recruitment process.

2.4 Key policy developments and legislative changes

None


Province of Limpopo

27

3. STRATEGIC OUTCOME ORIENTED GOALS

The Department has considered the strategic direction of Human Settlements,

Co-operative Governance and Traditional Affairs to benchmark National

Priorities. The outlined strategic goals have accommodated the socio-

economic environment of the Limpopo Province

Strategic

Goal

Goal

statement

Outputs Progress

1. A

professiona

l workforce

that is

proactive,

responsive

and geared

towards

the

realisation

of a

developme

ntal state

To render

professional

support and

create an

enabling

environment

for efficient

and effective

service

delivery

1.1

Professional

corporate

services

support

Queries logged

through

Departmental,

Premier, and

Presidential

hotlines had been

resolved

330 vacant posts

filled within the

establishment

Investigated all

cases that were

lodged on

corruption and

anti-fraud

1.2 Financial

management

support and

advisory

All undisputed

invoices have

been paid within

30 days

Strategic

Goal

Goal

statement

Outputs Progress

services for

effective

accountability

Achieved

unqualified

opinion with

matters of

emphasis in three

consecutive years

2014/15, 2015/16

& 2016/17

financial years

2. Integrated

human

settlements

with socio-

economic

opportunitie

s.

Eradicate

informal

settlements

and facilitate

equitable

access to

adequate

housing in an

integrated

and

sustainable

manner.

2.1 Housing

development

properly

planned by

October each

year

Multi-year

Housing

development plan

reviewed

2.2 Reduced

housing

backlog by

80 600 units

by 2019

21 563 houses

completed across

all housing

programmes

5 504 sites

connected to

basic water and

sanitation services

2.3

Transferred

22 605

housing

3 492 housing

units have been

transferred to

individual


Province of Limpopo

28

Strategic

Goal

Goal

statement

Outputs Progress

properties to

beneficiaries

by 2019

beneficiaries

8 rental units

devolved to

municipalities in

terms of the

Housing Act

171 projects had

been approved

10 389 Job

opportunities were

created

3. Sustainable

Cooperativ

e

Governanc

e system

• Monitor

and play

oversight

role in all

municipali

ties in

order to

improve

performa

nce and

good

governan

ce.

• Co-

ordinate

and

3.1 Improved

support and

oversight in

all

municipalities

by 2019

Supported all

municipalities in

improving

financial

management

All municipalities

have legally

compliant IDP’s

Strategic

Goal

Goal

statement

Outputs Progress

provide

support to

Traditiona

l

Leadershi

p

Institution

s in order

to

enhance

Local

Governan

ce.

4. Traditional

Affairs

Administrative

support to the

institutions of

Traditional

Leadership in

the Province

provided

annually

4.1

Supported all

established

institutions of

Traditional

Leadership

by 2019

Traditional Councils

are provided with

administrative support

that includes: payment

of salaries, provision

of tools of trade like

cell phone airtime and

furniture as well as

conducting of

workshops for

Traditional Surgeons

and protocol


Province of Limpopo

29

4. PERFORMANCE INFORMATION BY PROGRAMME

4.1 Programme 1: Administration

Purpose: To provide effective leadership in strategic planning of the department, management and administrative support to the core functions of the department.

This will be ensured through continuous refinement of corporate policies, skills development, efficient and effective financial management, structures and systems in

compliance with legislation and best practice and championing Batho Pele principles and service delivery.

Sub-programmes

Office of the MEC

Corporate Services

Strategic objectives for the financial year under review

Professional corporate service(s) support

Financial management support and advisory services for effective accountability.

Strategic objectives, performance indicators, planned targets and actual achievements

To ensure efficiency and promote accountability the department has developed and / or reviewed the following policies:

IP address Management Policy

ICT firewall policy

Leave of Absence Management Policy

Lost and Damaged Assets Management Policy

Service Excellence Awards Policy


Province of Limpopo

30

Overtime policy

Performance Management and Development Systems Policy

During the year under review, training needs were identified and workplace skills plan developed to address skills gaps. A total of 1 403 employees were

trained. The Internship and learnership programmes were also implemented

The Department achieved unqualified audit opinion for the 2015/16 financial year as a result of the underspending in Human Settlements and Traditional

institutional programmes

Strategic objectives:

Programme Name: Administration

Strategic objectives Actual Achievement

2015/2016

Planned Target

2016/2017

Actual Achievement

2016/2017

Deviation from planned target

to Actual Achievement for

2016/2017

Comment on

deviations

1. Professional

corporate

service(s) support

99% 99% of resolved queries

logged through Departmental

toll free, Premier and

Presidential hotline

100% of resolved queries

logged through Departmental

toll free, Premier and

Presidential hotline

1% Improved data

capturing and

tracing of

complainants

2. Financial

management

support and

advisory services

for effective

accountability.

100% of

claims/Vouchers

processed with 30

days

Process 100% of completed

claims/Vouchers with 30days

100% of claims/vouchers

processed with 30 days

None None


Province of Limpopo

31

Performance indicators

Programme : Administration

Strategic Objective 1: Professional corporate service(s) support

Performance Indicator Actual

Achievement

2013/2014

Actual

Achievement

2014/2015

Actual

Achievement

2015/2016

Planned Target

2016/2017

Actual Achievement

2016/2017

Deviation from planned

target to Actual

Achievement for

2016/2017

Comment on

deviations

1. Number of posts

to be filled

20 posts filled 69 posts

filled

147 60 56 4 Budget constraints

which affected

finalisation of the

recruitment processes

in respect of

advertised posts

2. Number of officials trained as per WSP

1300 training

sessions

conducted

1858 1 298 1 100 1403 303 Accelerated

implementation of

MOU with National

School of Government

for training

programmes

3. Percentage of women represented

54% 55% 55% of total

component is

women

50% 55% 5% Level 1-8 contributed

to the higher

representation

4. Percentage of persons with disability represented

0,61% 0,67% 0.71% 2% 0.7% 1.3% Candidates not

meeting minimum

requirements

5. Percentage of resolved queries logged through

99% 100% 99% 99% 100% 1% Improved data

capturing and tracing


Province of Limpopo

32

Programme : Administration

Strategic Objective 1: Professional corporate service(s) support


Achievement

2013/2014

Actual

Achievement

2014/2015

Actual

Achievement

2015/2016

Planned Target

2016/2017

Actual Achievement

2016/2017

Deviation from planned

target to Actual

Achievement for

2016/2017

Comment on

deviations

the Departmental toll free, Premier and presidential hotline

of complainants

6. Percentage of reported anti- fraud and corruption cases Investigated

85%

(40 of 47

cases)

100% 88% 100% 100% 0 None

Programme : Administration Strategic Objective: Financial management support and advisory services for effective accountability


Achievement

2013/2014

Actual

Achievement

2014/2015

Actual Achievement

2015/2016

Planned Target 2016/2017

Actual Achievement 2016/2017

Deviation from planned target to Actual Achievement for

2016/2017

Comment on deviations

7. Percentage of undisputed invoices for goods and services including the housing grant paid within 30 days

100% 100% 100% 100% 100% 0 None

8. Type of audit opinion

Unqualified opinion without

Achieved Unqualified Opinion

Achieved Unqualified opinion with

Achieve

Unqualified

Achieved Unqualified opinion with matters of

Achieved Unqualified

opinion with matters of

Material underspending of the conditional grant


Province of Limpopo

33

Programme : Administration Strategic Objective: Financial management support and advisory services for effective accountability


Achievement

2013/2014

Actual

Achievement

2014/2015

Actual Achievement

2015/2016

Planned Target 2016/2017

Actual Achievement 2016/2017

Deviation from planned target to Actual Achievement for

2016/2017


matters of emphasis

without Matter of emphasis

matters of emphasis

opinion without

matters of

emphasis

emphasis emphasis

9. Percentage of allocated budget spent

74,7% 82% 81%

Spend 100% of

allocated budget

95% 5% Underspending on Human settlements development grant as a result of work in progress (1406 foundations casted and 1697 wall plates constructed)

Reasons for all deviations

Posts filled were not suitable for people with disabilities

Budget constraint in respect of filling posts

Underspending on Human settlements development grant as a result of work in progress (1406 foundations casted and 1697 wall plates constructed)

Strategy to overcome areas of under performance

Priority will be given to targeted posts to be filled by people with disability during 2017/18

Forward planning with regard to approvals from the Provincial Treasury and recruitment processes


Province of Limpopo

34

Changes to planned targets

None

Linking performance with budgets

Underspending of R21.270 million is mainly as a result of delayed payments for accelerated pay progression for employees who are no longer in the

Department and whose banking details took time finalize.

Sub-programme expenditure

Sub- Programme

Name

2015/2016 2016/2017

Final

Appropriation

Actual

Expenditure

(Over)/Under

Expenditure

Final

Appropriation

Actual

Expenditure

(Over)/Under

Expenditure

R’000 R’000 R’000 R’000 R’000 R’000

Office Of The MEC 1 902 1 902 - 1 902 1 902 -

Corporate Services 303 491 297 682 5 809 359 594 354,311 5,283

Total 305 393 299 584 5 809 361 496 356,213 5,283


Province of Limpopo

35

4.2 Programme 2: Integrated Sustainable Human Settlements

Purpose: To ensure the provision of housing development, access to adequate accommodation in relevant well located areas, access to basic services and

access to social infrastructure and economic opportunities

To achieve the above mentioned purpose, the programme is divided into three sub-programmes:

Sub-programmes:

Housing Needs, Research and Planning Housing Development, Implementation Planning and Targets Housing Assets Management and Property Management

Strategic objectives for the financial year under review

Housing development properly planned by October each year

Reduced housing backlog reduced by 80 600 units by 2019

Transferred 22 605 housing properties to beneficiaries by 2019

Strategic objectives, performance indicators, planned targets and actual achievements

The department is on a positive trajectory of recovering from challenges experienced during 2013/14 and 2014/15 financial years. During the year under

review the department has received roll over amounting to R394, 842, 000.00 on HSDG, therefore setting the grant to R1, 603, 212, 000.00. Expenditure as

at the end of the financial year was R1, 517,376,062 translating to 94.6% of the adjusted allocation of 2016/17 and 2015/16 roll over business plan. As a

result significant progress was recorded on construction of housing units on the rural programme. In contrast, the various housing programmes are not

performing as expected therefore will impact realisation of strategic objectives. A total of 8 targets of 26 set during the year under review were achieved

contrast to improved budget expenditure.

In order to correct the situation the department will ensure that activity planning is strengthened to improve on implementation of programmes. Database of

contractors has been appointed in order to deal with performance of contracts and enable department to recover quickly in case of non-adherence to contract

terms and conditions by service providers. Progress on FLISP, CRU and Military Veterans still remains a challenge.


Province of Limpopo

36

Strategic objectives:

Programme Name: Integrated Sustainable Human Settlements

Strategic objectives Actual Achievement

2015/2016

Planned Target

2016/2017

Actual

Achievement

2016/2017

Deviation from planned target

to Actual Achievement for

2016/2017


3. Housing development

properly planned by

October each year

0 Formalize 4

settlements

0 4 Land claims

Prospecting rights and intention of

municipalities to reprioritise

developments.

Municipalities Delay to comment

and approve layout plans

4. Reduced housing

backlog reduced by 80

600 units by 2019

8 605 13 750 10 741 3 009 The deviation is as a result of rollover

projects and implementation of

turnaround strategy

5. Transferred 22 605

housing properties to

beneficiaries by 2019

1 978 7 535 1 017 6 464 Majority of properties to be transferred

are situated in un-proclaimed townships


Province of Limpopo

37


Programme: Integrated Sustainable Human Settlements

Strategic Objective: Housing development properly planned by October each year

Performance

Indicator

Actual

Achievement

2013/2014

Actual

Achievement

2014/2015

Actual

Achievement

2015/2016

Planned Target

2016/2017

Actual

Achievement

2016/2017

Deviation from

planned target to

Actual

Achievement for

2016/2017

Comment on

deviations

1. A Multi Year

Housing

Development

plan/APP

developed by

October

Multi-year Housing

Development plan

reviewed

Multi-year

Housing

Development

Plan reviewed

Reviewed

Multiyear Human

Settlements

development plan

Review Multiyear

Human

Settlements

development plan

Reviewed

Multiyear Human

Settlements

development plan

None None

2. Number of

informal

settlements

formalised

through township

establishment

Not Achieved 0 0 Formalize 4

informal

settlements

0 4 Steenbokpan

in Lephalale

LM has been

reprioritised

from

residential to

mining.

Municipalities

delay to

comment and

approve layout

plans in line

with SPLUMA


Province of Limpopo

38



Performance

Indicator

Actual

Achievement

2013/2014

Actual

Achievement

2014/2015

Actual

Achievement

2015/2016

Planned Target

2016/2017

Actual

Achievement

2016/2017

Deviation from

planned target to

Actual

Achievement for

2016/2017

Comment on

deviations

3. Number of Hectares of land acquired

0 0 131 hectares of

land acquired at

Greater Tzaneen

Municipality –

Hamawasha and

Greater Tubatse

Municipality -

Mooifontein

42.5ha 0 42.5ha Land claim in

Motetema portion

21 of the farm

Welverdiend

4. Number of

planned human

settlement

(housing)

developments

based on IDPs’,

National and

Provincial

Priorities

approved

(Number of

development

sites identified)

N/A 10 000 12 000 15 000 13 639 1 361 Thabazimbi returned the allocation due to inadequate bulk infrastructure

Late submissions of development areas by municipalities

5. Number of

municipalities

Prepared one

municipality for

0 One Municipality

prepared for level

Confirm Polokwane

0 4 Level 2

accreditation


Province of Limpopo

39



Performance

Indicator

Actual

Achievement

2013/2014

Actual

Achievement

2014/2015

Actual

Achievement

2015/2016

Planned Target

2016/2017

Actual

Achievement

2016/2017

Deviation from

planned target to

Actual

Achievement for

2016/2017

Comment on

deviations

accredited on

Human

settlements

provision

level two

Accreditation

two accreditation

Three

municipalities

prepared for level

accreditation

(accreditation

preparatory

meetings for

Makhado, Musina

and Greater

Tubatse local

municipalities

were held)

municipality for Level 2 Accreditation Confirm

Lephalale,

Greater Tubatse

and Makhado

municipalities for

level 1

accreditation.

for Polokwane

LM recently

concluded by

the

Assessment

Panel

Level 1 All 4

Councils could

not provide all

required

information for

level 1

Business

Plan.

6. Number of beneficiaries exposed to consumer education.

N/A N/A N/A 3 000 2 578 422 Poor turnout of

beneficiaries

7. Number of municipalities capacitated and supported with

2 (Ellias

Motsoaledi &

Tubatse

2 5 (Lephalale, Elias

Motsoaledi,

Polokwane,

Provide support

to 5

municipalities

5 0 None


Province of Limpopo

40



Performance

Indicator

Actual

Achievement

2013/2014

Actual

Achievement

2014/2015

Actual

Achievement

2015/2016

Planned Target

2016/2017

Actual

Achievement

2016/2017

Deviation from

planned target to

Actual

Achievement for

2016/2017

Comment on

deviations

regard to human settlement (housing) development planning

Supported Greater Tzaneen

and Greater

Tubatse)

through UISP

8. Number of Acts

passed and/or

policy guidelines

approved

Draft provincial

housing allocation

policy available.

Informal

settlement bill still

with the Provincial

Legislature for

gazetting.

0 0 Pass 1 Policy /

Act

0 1 Policy / Act Delay in

submission of

inputs by key

stakeholder.

Provincial

Allocation Policy

was finalised and

submitted for

approval

9. Number of

research papers

completed

None 0 0 1 0 1 Research Paper

on Disaster

Programme was

recently finalised

and submitted for

approval


Province of Limpopo

41



Strategic Objective: Reduced housing backlog reduced by 80 600 units by 2019

Performance

Indicator

Actual

Achievement

2013/2014

Actual

Achievement

2014/2015

Actual

Achievement

2015/2016

Planned Target

2016/2017

Actual

Achievement

2016/2017

Deviation from

planned target to

Actual

Achievement for

2016/2017

Comment on

deviations

10. Number of new

housing units

completed in the

province across

all housing

programmes

being utilised by

the province

2 877 2 065 8 588 9 904 10 135 231 The deviation is as a

result of rollover projects

and implementation of

turnaround strategy

11. Number of

Housing stock /

RDP rectified

95 60 0 500 220 280 Delay in appointment of contractors for 2016/17

Underperformance by some of the contractors due to scattered development areas.

12. Number of

households

connected to

basic services as

part of the

N/A 0 1 091 6 900 0 6 900 None availability of

bulk services in

most informal

settlements.

Most informal


Province of Limpopo

42



Performance

Indicator

Actual

Achievement

2013/2014

Actual

Achievement

2014/2015

Actual

Achievement

2015/2016

Planned Target

2016/2017

Actual

Achievement

2016/2017

Deviation from

planned target to

Actual

Achievement for

2016/2017

Comment on

deviations

informal

Settlements

Upgrading

Programme

settlements are

prioritised for

implementation in

2017/18

13. Number of rental

units built (CRU)

and (SH)

N/A 0 0 150 0 150 Delay in relocation of

hostel dwellers due to

readiness of the areas

for which they are

relocated.

14. Number of new

sites connected

to basic water

and sanitation

services as part

of the Integrated

Residential

Development

Programme

N/A 0 346 3 193 4 067 874 The deviation is as a

result of a deliberate

strategy to supply more

serviced sites in urban

areas to curb informal

settlements

mushrooming.

15. Number of Enhanced Peoples Housing Process units completed

N/A 0 N/A 100 90 10 The remaining 10 units

are work in progress and

being finalised.


Province of Limpopo

43



Performance

Indicator

Actual

Achievement

2013/2014

Actual

Achievement

2014/2015

Actual

Achievement

2015/2016

Planned Target

2016/2017

Actual

Achievement

2016/2017

Deviation from

planned target to

Actual

Achievement for

2016/2017

Comment on

deviations

16. Number of Disaster units to be completed

N/A N/A N/A 358 286 72 The remaining 72 units

are work in progress and

being finalised.

17. Number of Military Veterans Units to be completed

N/A N/A N/A 130 10 120 Delay in verification

of beneficiaries by

DMV and SAMVA.

Delay in finalisation

of the house

specifications and

costing


Province of Limpopo

44



Strategic Objective: Transferred 22 605 housing properties to beneficiaries by 2019

Performance

Indicator

Actual

Achievement

2013/2014

Actual

Achievement

2014/2015

Actual

Achievement

2015/2016

Planned Target

2016/2017

Actual

Achievement

2016/2017

Deviation from

planned target to

Actual Achievement

for 2016/2017

Comment on

deviations

18. Number of units

transferred

through the

Enhanced

Extended

Discount Benefit

Scheme

135 188 0 100 0 100 Delays in the issuing of

clearance certificates

for individual properties

by the municipalities

19. Number of units

Registered and

Endorsed

767 309 1 978 7 535 1017 6 518 Majority of properties to be transferred are situated in un-proclaimed townships.

20. Number of rental

units devolved to

municipalities in

terms of section

15 of the Housing

Act, 97

None 3 3 3 2 1 Last property awaiting

final transfer

21. Number of

projects approved

80 32 61 70 78 8 Addition projects

approved to address

backlog


Province of Limpopo

45


Strategic Objective: Transferred 22 605 housing properties to beneficiaries by 2019

Performance

Indicator

Actual

Achievement

2013/2014

Actual

Achievement

2014/2015

Actual

Achievement

2015/2016

Planned Target

2016/2017

Actual

Achievement

2016/2017

Deviation from

planned target to

Actual Achievement

for 2016/2017

Comment on

deviations

22. Number of job

opportunities

created

466 392 1 325 5 402 8 672 3 270 More jobs created in

line with the turn-

around strategy with

increased housing

delivery.

23. Number of

beneficiaries/subsi

dies approved on

the Housing

Subsidy

System(HSS)

N/A 10 171 8 459 15 000 8 128 6 872 Only 8 000units were

allocated and

contractors appointed

for 2016/17

24. Number of reports

on rental disputes

compiled

N/A N/A 1 1 1 0 None

25. Number of

Reports submitted

(MEC advisory

Panel)

1 1 1 1 1 0 None

26. Number of

Finance-linked

individual subsidy

programme

(FLISP) units

completed

n/a 60 43 763 6 757 Insufficient number of

housing stock, priced

between R350,000 –

R450,000.


Province of Limpopo

46

Reasons for all deviations

Land claim in Motetema Portion 21 of the farm Welverdiend

Thabazimbi returned the allocation due to inadequate bulk infrastructure.

Municipalities Delay to comment and approve layout plans

Poor turnout of beneficiaries

Rollover projects and implementation of turnaround strategy

Delay in relocation of hostel dwellers due to readiness of the areas

for which they are allocated

Late submissions by municipalities

Delay in submission of inputs by key stakeholders

None availability of bulk services in most informal settlements

Delay in appointment of contractors for 2016/17

Underperformance by some of the contractors due to scattered development areas.

Delay in verification of beneficiaries by DMV and SAMVA

Insufficient number of housing stock, priced between R350 000 –

R450 000.

Strategy to overcome areas of under performance

Approve 9 Provincial Priority and Integrated Projects

Planning, Introduce Land identification, acquisition and township

establishment that promote mixed income housing typologies in

growth economic areas, e.g. Polokwane, Lephalale, Greater Tubatse,

Musina-Makhado SEZ, Mogalakwena, Greater Tzaneen, Bela-Bela,

Engagement of external expertise to enhance in-house project

management capacity

Rural development

Focus on high population concentration areas e.g. Thulamela-LIM 345

Contracting strategies

Multiyear appointment

Mix of highly capacitated and emerging contractors

Financial Performance Guarantees required for appointed contractors

Private-Public partnership

Partnership with banks and other private Developers

Redevelopment of bulk infrastructure, e.g. DBSA

Assisting all the municipalities with the development of

Municipal Spatial Development Frameworks

Land use management schemes and

Credible housing chapters in the IDP’s.

A provincial housing demand database will also be developed

housing demand management system (Bio-Metrix)

Land audit

Quantification of informal settlements and packaging of projects


None

Linking performance with budgets

Underspending is mainly on Human Settlement projects (Rural Housing)

which is attributed to underperformance by other contractors, development

areas characterised by difficult terrains and inclement weather


None

Sub-programme expenditure

2015/2016 2016/2017

Sub- Programme Name Final Appropriation

Actual Expenditure

(Over)/Under Expenditure

Final Appropriation

Actual Expenditure

(Over)/Under Expenditure

R’000 R’000 R’000 R’000 R’000 R’000

Housing Needs , Research and Planning

173 126 171 659 1 467 64 582 64 030 552

Housing Development, Implementation, Planning and Target

1 486 675 1 027 312 459 363 1 597 569 1 511 209 86 360

Housing Asset Management and Property Management

39 627 35 052 4 575 62 346 61 879 467

Total 1 699 428 1 234 02

vote no. 11 annual report 2016/2017 financial year...flisp financed-linked individual subsidy...

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