MPUMALANGA PROVINCE

1
MPUMALANGA PROVINCE

• REPORT ON HOUSING GRANT AND HUMAN SETTLEMENT
  REDEVELOPMENT
• CAPITAL EXPENDITURE

2
THE PERFORMANCE OF MPUMALANGA HOUSING 2005/06

• Introduction
• The department took a strategic decision to focus
  on the completion of incomplete housing projects
  that were blocked as a result of non availability
  of land and inflation problems.
• Performance in 2005/06 on the Housing Grant
  reached 82.
• Performance on the Human Settlement Redevelopment
  Grant was 88.
• The presentation below details the challenges and
  actions taken to address them.

3
DATA ON HOUSING UNITS DELIVERED FOR THE 2005/06
HOUSING CONDITIONAL GRANT
Subsidy Instrument Target 05/06 Completed Units
Project Linked Subsidy 4,658 2,127 45
CBIS/CBRS 10,358 9,597 92
PHP 2,068 1,767 85
TOTAL 17,084 13,491 78
4
DATA ON BUDGET AND EXPENDITURE FOR THE 2005/06
HOUSING CONDITIONAL GRANT
Budget R000 Expenditure R000 Roll Over R000
321,123 262,070 R59 82
5
CHALLENGES FOR THE 2005/06 HOUSING CONDITIONAL
GRANT

• Lack of monitoring capacity and technical
  inspection of projects as result of shortage of
  personnel. Our baseline is limited. This does not
  enable us to finance unfunded posts.
• Failure to complete projects on time as a result
  of scarce material, lack of capacity of
  contractors
• Lack of skill to interpret contracts by
  contractors.
• Collusion of contractors with government
  officials to defraud government.
• Corruption, e.g. fronting, collusion with civil
  servants, etc
• The introduction of operational capital enabled
  us to secure additional services of professional
  project management companies to beef up our
  inspections.

6
SOLUTIONS

• Employment of additional technical staff through
  the use of operations capital that enabled us to
  employ project managers.
• 3 Corrupt officials charged and dismissed
• Nonperforming contractors terminated, and new
  contractors have been appointed and contracts
  drawn to complete the 3,593 outstanding units.
• Provincial treasury assisted with top-up funding
  to address inflation creep that had affected some
  projects.

7
DATA ON BUDGET AND EXPENDITURE FOR THE 2005/06
HUMAN SETTLEMENT REDEVELOPMENT GRANT
PROJECT BUDGET R000 EXPENDITURE R000
Bohlabela Dist Municipality Feasibility study 379 370 98
Wasserberg Linkage Road Umjindi 3,523 3,322 94
Multipurpose centre Balfour 2,052 1,650 80
Daggakraal Multipurpose centre 1,710 1,242 73
High mast lights Emakhazeni municipality 451 437 97
Sekhukhune Feasibility Study (Retention) 87
TOTAL 8,116 7,109 88
8
CHALLENGES FOR THE 2005/06 HUMAN SETTLEMENT
REDEVELOPMENT GRANT

• Late appointment of consultants by municipalities
• Changes to the designs by the municipalities to
  convert from hall only to a multipurpose centre
  with office space.

9
2005/06 HUMAN SETTLEMENT REDEVELOPMENT GRANT

• The outstanding 12 relates to work that must
  still be completed on the MPCCs and the inherent
  retention money.
• The enclosed photos are an indication of work
  that is complete at Dipaleseng and at Pixley Ka
  Seme the performance is at 85. This project
  should be finished by the end of May 2006.

10
THANK YOU