1. SELECT COMMITTEE ON FINANCE PUBLIC HEARINGS ON CONDITIONAL GRANT
20 MAY 2008
Presented by:
MEC: MALEFETSANE MAFEREKA
DEPARTMENT OF LOCAL GOVERNMENT AND HOUSING
FREE STATE PROVINCE

2. Table of Contents Budget Allocation 2007/08: Grant
Expenditure outcomes 2007/08 financial year: Grant
Housing Delivery
Expenditure outcomes 2007/08 financial year:
Operational Budget
5. Cash flow 2007/2008
6. Service delivery challenges
7. New Approach

3. Budget Allocation 2007/08: Grant
Amount
Annual Appropriation R
Plus: Roll over funds R
Total Budget Allocation R
Less: Amount withheld R
Total Annual Budget R

4. Expenditure Outcomes 2007/08 Financial Year: Grant
Budget
Spending
Balance
% Spending
Maintenance
R 4,350,000.00
R 0.00
0.00%
Human Settlement
R 4,300,000.00
100.00%
Individual Support
R 9,459,000.00
R 2,571,250.35
R 6,887,749.65
27.18%
Project Linked Support
R 436,129,000.00
R 414,946,209.13
R 21,182,790.87
95.14%
Institutional Subsidies
R 10,000,000.00
Emergency Housing Assistance
Rural Housing Support
Affordable State Rental (Hostel)
Discount Scheme
R 1,000,000.00
R 71,750.00
R 928,250.00
7.18%
Peoples Housing Process
R 69,570,000.00
R 51,270,736.29
R 18,299,263.71
73.70%
Total
R 553,508,000.00
R 473,159,945.77
R 80,348,054.23
85.48%

5. Housing Delivery
The actual expenditure for 2007/08 delivered completed housing units and R17 million thereof for land.

6. Expenditure Outcomes 2007/08 Financial Year: Operational Budget
PROGRAMME 2: HOUSING
Budget
Expenditure
Variance
% Spending
Compensation of employee
22,685
19,951
2,734
88%
Goods and services
25,724
18,575
7,149
72%
Transfer payments
4,163
3,678
485
Capital payments
2,028
842
1,186
42%
Total
54,600
43,046
11,554
79%

7. Cash Flow 2007/08

8. Service Delivery Challenges
Natural Causes e.g. Incessant Rains
Shortage of staff e.g. Shortage of housing inspectors, program specific units like FLISP, Land restitution and exclusionary housing (compensation of employees vs housing grant 3%)
Shortage of Building Material
Incorrect information regarding the availability of land
Re location of allocated projects by Municipalities from ready areas to areas that are not ready

9. Service Delivery Challenges cont…
None sufficient supply of qualifying beneficiaries by Municipalities
Housing Consumer Education
Inconsistent application of policies and procedures
Contract Management
Project Management

10. New Approach Planning Regime
Established an integrated planning and implementation Committee made up of all the relevant role players
In the financial year 2008/2009 the department has ensured that the following activities are done by the Department as opposed to delegating them to third parties:
Entering into Land Availability Agreements with Municipalities
Appointing Service Providers to do Geo Technical Assessments reports on each project

11. New Approach cont…
Paying Building Plans and other Municipal fees direct to Municipalities.
Procuring land parcels for future housing developments
There are 71 housing projects spread all over the Province expected to build housing units.
Already 68 land availability agreements have been signed with Municipalities

12. New Approach cont… De-linking of Beneficiaries from Sites
In terms of the policy on Integrated Residential Development Program (IRDP) from now henceforth as a Department we can build houses on approved sites that do not have approved beneficiaries at the time of construction
This approach is going to increase the pace and speed of housing delivery

13. THANK YOU