Human Settlements
With regard to his Department’s expenditure of the Human Settlements Development Grant(HSDG):
(a)What is the detailed breakdown of the expenditure of this grant, including the (b) breakdown of under expenditure per municipality, (c) details of the projects affected by the under expenditure in the period between 2009/10 and 2020/21 and (d) actions taken to correct the situation in subsequent years?
Detailed breakdown of expenditure of HSD grant
See Annexure C
(2009/10-2013/14, 2014/15-2018/19, 2019/20-2020/21)
(b) : Detail of expenditure by municipalities
See Annexure C
(2009/10-2013/14, 2014/15-2018/19, 2019/20-2020/21)
(c )(d) : Under-expenditure and actions taken
The housing projects undertaken by my department and municipalities are multi-year projects, and any delay on a project in a particular year will affect the ability of the municipality to spend the allocated funding. The following are the projects experiencing delays that led to substantial under-expenditure in the period 2009/10 to 2020/21 ;
Breede Valley :
In 2015/16 the municipality spent only 66% of the funding allocated. This was due to delays in implementing the Orchards (109) project. The project commenced late in the financial year and the sites were only completed in 2016/17
Drakenstein :
In 2017/18 the municipality spent only 37% of the funding allocated. This was due to delays in starting the Vlakkeland project. Two phases of 316 and 236 sites commenced late and were only serviced in 2018/19.
In 2018/19 only 57% of the available funding was spent, due to delays in starting further phases and houses on the above phases. The construction of top structures has proceeded very slowly leading to under-performance.
Langeberg :
In 2012/13 the municipality spent only 65% of the funding allocated. This was due to delays in implementing the Robertson Muiskraalkop project. The sites were serviced in 2013/14 and house construction commenced that same year.
In 2019/20 only 54% of the available funding was spent, due to delays in the completion of the McGregor project.
In 2020/21 only 59% of the available funding was spent, due to delays in the planning processes for the Bonnievale project.
Stellenbosch :
In 2018/19 the municipality spent only 15% of the funding allocated. This was due to delays in implementing the Kayamandi Zone O and Vlottenberg Longlands projects.
In 2019/20 then municipality spent 60% of the allocated funding. Although the sites at Longlands were developed, there were further delays in the implementation of Kayamandi Zone O.
Witzenberg :
In 2012/13 the municipality spent 64% of the funding allocated. This was due to delays in construction on the Op die Berg project of 250 units. The units were completed in 2013/14.
In 2016/17 the municipality spent 69% of the allocated funding. This was due to delays in the implementation of the Bella vista project. In 2017/18 the project was completed.
In 2016/17 the municipality spent 20% of the funding allocated. This was due to delays in implementing the Bredasdorp site H (158) and site F (683) projects. Sites were serviced on both projects in 2017/18.
In 2018/19 the municipality spent 63% of the allocated funding due to slow progress with the construction of houses on the above two projects.
In 2009/10 the municipality spent 56% of the funding allocated. This was due to delays in implementing the Kleinmond project with difficulties working on steep slopes, which required retaining walls and additional funding. The project was supplemented with funding from the CSIR to include sustainability measures including water tanks.
Swellendam :
In 2009/10 the municipality spent 66% of the funding allocated. This was due to delays in implementing the Railton project. The remaining 50 houses were completed in 2010/11.
In 2018/19 the municipality spent 25% of the allocated funding due to delays in implementing the Barrydale project. The project has recently been completed.
Theewaterskloof :
In 2020/21 the municipality spent 64% of the funding allocated. This was due to delays on the Hillside and Botriver projects, which are being attended to.
In 2009/10 no projects were implementation ready. The municipality has serious challenges with bulk services.
In 2012/13 the municipality spent 51% of the allocated funding due to delays in implementing the Matjiesfontein project. The project was completed in 2013/14.
Prince Albert :
In 2009/10 the municipality was struggling to implement the Klaarstroom project, which finally proceeded in 2010/11.
In 2015/16 the municipality spent 27% of the allocated funding due to delays in implementing the Prince Albert project – the 243 sites were serviced in 2016/17.
Bitou :
In 2020/21 the municipality spent 33% of the funding allocated. This was due to delays on the Qolweni/Bossiesgif and Ebenhaeser projects. The department is assisting in resolving the disputes arising out of procurement challenges.
George :
In 2009/10 the municipality spent 56% of the allocated funding due to delays in implementing the Pacaltsdorp (904) and Touwsranten (395) projects. The procurement of contractors was a long drawn out process, but work on both projects commenced in 2010/11.
Hessequa :
In 2017/18 the municipality spent 40% of the allocated funding due to delays in implementing the Melkhoutfontein project. Progress with the building of houses was very slow.
In 2019/20 and 2020/21 the municipality has been struggling to implement the Slangrivier project and the Stilbaai project due to a shortage of bulk services funding. My department has committed to partially fund the bulk services and the municipality needs to fund the balance. This has led to low expenditure over the past two years.
Kannaland :
In 2015/16 the municipality spent 23% of the allocated funding due to delays in implementing the Calitzdorp project. The following year the delays were resolved and in 2016/17 sites as well as 251 houses were constructed.
In 2019/20 the municipality struggled to implement the Zoar infill project, leading to poor expenditure. The planning approvals are now in place and implementation can proceed in 2021/22.
Knysna :
In 2018/19 the municipality spent 51% of the allocated funding due to delays in implementing the Xolweni, Hornlee and Hlalani projects. This was largely due to procurement delays in appointing contractors and material supply.
In 2012/13 the municipality spent 69% of the allocated funding due to delays in implementing the Friemershein (200) project. The following year (2013/14) the 200 houses were completed.
In 2018/19 the municipality spent 55% of the allocated funding due to delays in implementing the Asazani and Sonskynvallei projects due to procurement delays, with tenders coming in too high. The tenders were repackaged and readvertised at a later stage and work proceeded in 2019/20 on the two projects.
Oudtshoorn :
In 2011/12 the municipality spent 61% of the allocated funding due to delays in implementing the Oudtshoorn infill project. The project was completed in the 2012/13 financial year.
Berg River :
In 2012/13 the municipality spent 58% of the allocated funding as there were no projects implementation ready.
In 2017/18 delays on the Velddrif Noordhoek project led to poor expenditure. The contractor has finally finished all the houses after disputes over allocation of the houses turned violent and led to damage to the houses.
In 2016/17 the municipality spent 65% of the allocated funding due to delays in the implementation of the Citrusdal project, as bulk services availability was a challenge. My department has assisted the municipality with funding for bulk services.
In 2017/18 delays on the Lamberts Bay project led to poor expenditure. The sites were finally serviced in 2018/19.
Matzikama :
In 2014/15 the municipality spent 67% of the allocated funding due to delays in the implementation of the Vredendal North and Klawer projects. These projects proceeded in 2015/16 with 165 and 283 sites serviced.
In 2020/21 the municipality experienced delays in proceeding with the Vredendal phase 5 and Lutzville top structures, again mainly due to prioritisation of beneficiaries in vulnerable groups. Construction should start in 2021/22.
Saldanha Bay :
In 2009/10 the municipality spent 47% of the allocated funding due to delays in the implementation of the Ongegund project. The project continued in 2010/11 with 196 houses completed.
In 2020/21 the municipality experienced delays in proceeding with the Laingville (309) top structures, again mainly due to prioritisation of beneficiaries in vulnerable groups. Construction should start in 2021/22. There were also delays in the implementation of the Louwville project of 200 sites.
