1. NORTHERN CAPE DEPARTMENT OF HOUSING AND LOCAL GOVERNMENT
PRESENTATION TO SELECT COMMITTEE ON FINANCE
20 MAY 2008
PARLIAMENT

2. DATA TRENDS IN ALLOCATION
YEAR
ALLOCATION %
INCREASE
EXPENDITURE
VARIANCE
2005/06
R103,130
R105,756
(Adj. Est. - Prov. Nov 05)
2006/07
R104,774
R107,717
2007/08
(Budget Allocation)
R131,036
2007/08 (Adj.Est. Nat. Feb 08)
R100,000
TOTAL

3. ACHIEVEMENTS 2007-08 The allocation for the 2007/08 was R231,036m.
The expenditure as at 4th quarter was R231,021m(99.99%).
The province delivered 2464 houses, 5116
serviced sites and 1793 title deeds for 2007/08
An additional R100million was received during February 2008
The planned delivery was 1377 houses and 1120 services
1106 houses are under construction
2324 service sites completed
1509 service sites under construction

5. EXPENDITURE OF R100 MILLION
MEC approved allocation to projects during October 2007 based on readiness of projects to spent
Business plans were received and service level agreements were signed with respective municipalities
Allocations to municipalities were based on actual progress of running projects (services and building of top structures)
Payments were not made to accredited municipalities as outlined in the Parliamentary
There are currently no fully accredited municipalities in the Province

6. CONTINUATION…
Bulk of the payments were made on actual progress at project level and on projects completed as monitored and certified by building inspectors in conjunction with the municipalities
Attached, to the presentation is the names of the relevant municipalities, and description of payment
Thubelisha was utilised to fast track projects in Pixley ka Seme, Namakwa and Frances Baard
TRANCH PAYMENTS was made to THUBELISHA for three projects (Namdev, Longland, Cader), based on milestones

7. CONTINUATION…
The payment certificates was jointly signed by departmental building inspectors and Thubelisha to contractors
Thubelsiha provides the department with monthly reconciliations
All payments were made through HSS and BAS

8. UTILISATION OF MUNICIPALITES AS DEVELOPER
Monies allocation to municipalities for housing project is not gazetted in the DORA as its only paid out on progress . This assists the province to shift allocations when projects are not performing, to performing projects in order to prevent under expenditure.
The Housing Code makes provision for municipalities to be utilized as developers and municipalities prefer to be developers as this assists them to build their in-house technical capacity to ensure integrated sustainable human settlements.
Vastness/remoteness of the province
Limited equitable share to the department to address an ideal housing structure to perform all housing functions
Limited professionals in the province

9. TRANSFER AND EXPENDITURE
Month
Transfers
Expenditure
% Spent
07-Apr
41%
07-May
106%
07-Jun
72%
07-Jul
59%
07-Aug
118%
07-Sep
86%
07-Oct
101%
07-Nov
402%
07-Dec
366%
08-Jan
161%
08-Feb
92%
08-Mar
98%
Roll over
60 000 0%
TOTAL
100%

10. DELIVERY PER REGION Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total
Quarter 1
Quarter 2
Quarter 3
Quarter 4
Total
Districts
Services
Houses
Completed
Frances
Baard
112 24
276
138 2
304
406
554
708
Pixley
Ka Seme
204 43
241
105 70
1838
222
1986
737
Kgalagadi 30 9
131 38
361
134
492
211
Namakwa 35
111 23
180 85
215
219
Siyanda
285 33
221 55
1229
501
1869
589
432
402
264
604
508
110
3912
1348
5116
2464

12. MONITORING CAPACITY
Appointment of additional building inspectors and professionals on contract to ensure quality control
Monitoring and evaluation unit established
Updating HSS on project progress by building inspectors at regional level

13. THANK
YOU