HDA Annual Report

ANNUAL REPORT 2023/24

Minister’s Foreword

land, the need for well-located land is increasing at the same rate as urbanisation. This means that the Agency’s approach to land and property acquisition needs a radical rethink to enable the development of sustainable human settlements that can keep up with the demand for housing for all segments of the market that require the government’s direct intervention. In addition to economic concerns, people who work and live in cities desire better living spaces for their daily lives that offer safety and security. In most inner-cities in South Africa, pressure springs from the fact that the conditions that exist today in urban reality do not match people’s needs and aspirations for central accommodation close to jobs, schools and social services that provide comfort, peace of mind and liveable environments. To escape this mismatch or imbalance between aspirations and reality and find ‘better’ spaces to live, people are forced to live in-between, to inhabit somewhere and make do, whilst aspiring to be elsewhere, but simultaneously knowing there are few avenues through which this aspiration can be realised. In most cases, these people end up in informal settlements, which in some cases are located in flood plains putting their lives at risk. The aggregate effects of this pressure are hopelessness and despondency, which breed anger and resentment. The HDA must execute its mandate, keeping this state of affairs on its radar.

Two years after the adoption of a strategic plan that identified six pillars critical to the HDA’s turnaround following several years of instability at the governance and operational level, its implementation has led to significant improvement in performance. The Agency has achieved an unqualified audit opinion and 91% of the targets planned for the 2023/24 financial year. This is an improvement from the previous financial year’s performance of 74%. During the same period, the Agency managed to reduce irregular and fruitless expenditure. The entity confirmed an irregular expenditure of R36 million, a reduction from the previous financial year’s irregular expenditure of R371 million. This means that to reduce irregular and fruitless even more, there is a need to further tighten internal controls and implement consequence management in instances of irregular and fruitless expenditure. The Housing Development Agency (HDA) was established to fulfil two primary objectives. The first is to identify, acquire, hold, develop and release well-located land and buildings for human settlement. The second is to provide project delivery services in planning, capacity support and capability, and project management. Concerning

The Agency has achieved an unqualified audit opinion and

91% of the targets planned for the 2023/24 financial year. This is an improvement from the previous financial year’s performance of 74%.

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