The Department of Human Settlements is implementing a range of measures to curb the underspending of grants, and improve the delivery of housing and related infrastructure.
Responding to oral questions in the National Council of Provinces (NCOP) on Tuesday, Human Settlements Minister Thembi Simelane said the interventions aim to ensure that allocated funds lead to the delivery of serviced sites, housing units and bulk infrastructure, while minimising underspending across all levels of government.
She revealed that provinces and metropolitan municipalities returned millions of rands in unspent Human Settlements grants during the 2024/25 financial year.
At provincial level, a total of R8.801 million from two key grants was surrendered to the National Revenue Fund. This included R5.951 million from the Human Settlements Development Grant (HSDG) and R2.850 million from the Informal Settlements Upgrading Partnership Grant (ISUPG).
Gauteng accounted for the largest share of unspent HSDG funds at R5.529 million, followed by Mpumalanga and Limpopo, while smaller amounts were returned by other provinces.
Under the provincial ISUPG, Gauteng again recorded the highest underspending at R2.553 million, with additional amounts surrendered by the Free State, North West, Northern Cape and Eastern Cape.
At municipal level, the total amount returned was significantly higher, reaching R174.873 million across two grants.
The Urban Settlements Development Grant (USDG) accounted for R105.866 million in unspent funds, with Nelson Mandela Bay returning the largest portion at R74.137 million. This was followed by eThekwini (R15.678 million), the City of Cape Town (R13.451 million) and the City of Tshwane (R2.6 million).
A further R69.007 million was returned under the Metropolitan Informal Settlements Upgrading Partnership Grant. Mangaung and Nelson Mandela Bay recorded the highest underspending at R34.111 million and R34.707 million, respectively, while smaller amounts were returned by the City of Tshwane and Buffalo City.
Measures to strengthen grant spending performance
Simelane said the department has introduced several measures to strengthen grant spending performance across all spheres of government.
“Key initiatives, which include the quarterly performance review sessions for provincial, municipal and human settlements entities, allow these organisations to report on their performance and enhanced monitoring and early warning systems that help the department to identify underperformance early in the financial year and take timely action,” the Minister said.
The department is also enforcing provisions of the Division of Revenue Act, allowing for the conditional allocation, withholding and reallocation of funds from persistently underperforming provinces to those with the capacity to spend effectively.
Additional interventions include technical and capacity support to provinces and metros, such as the deployment of built environment specialists and project management assistance, as well as improved planning alignment to ensure readiness in areas such as procurement, land availability and bulk infrastructure before funds are allocated.
Simelane said quarterly MinMec (Minister MEC) performance engagements with accounting officers and political leadership are being used to strengthen accountability for grant performance and ensure adherence to compliance requirements.
The department has also convened rollover workshops with metropolitan municipalities, provincial treasuries and the South African Local Government Association to support credible applications to National Treasury.
“The department, together with provincial treasuries and other transferring officers, is part of the committee that assess rollover applications of the metropolitan municipalities, and the department plays a significant support role for the metros.
“These initiatives aim to ensure that allocated funds lead to the delivery of serviced sites, housing units, and bulk infrastructure while minimising underspending across all levels of government,” Simelane said. – SAnews.gov.za
