GAUTENG PARTNERSHIP FUND ANNUAL REPORT 2017/2018 Melijian Construction & Development Pomona ANNUAL REPORT 2017/18 GPF 1 Contents Page PART A: GENERAL INFORMATION ........................................................................................... 5 1 PUBLIC ENTITY’S GENERAL INFORMATION.................................................................................................................... 6 2. LIST OF ABBREVIATIONS/ACRONYMS ............................................................................................................................ 7 3. FOREWORD BY THE MEC ............................................................................................................................................... 8 4. REPORT OF THE CHAIRPERSON .................................................................................................................................... 10 5 CHIEF EXECUTIVE OFFICER’S OVERVIEW ...................................................................................................................... 12 6. STATEMENT OF RESPONSIBILITY AND CONFIRMATION OF ACCURACY FOR THE ANNUAL REPORT ..................................15 7. VISION, MISSION AND VALUES .................................................................................................................................... 16 8. LEGISLATIVE AND OTHER MANDATES .......................................................................................................................... 17 9. ORGANISATIONAL STRUCTURE .................................................................................................................................... 23 PART B: PERFORMANCE INFORMATION ................................................................................. 26 1. AUDITORS REPORT: PREDETERMINED OBJECTIVES ...................................................................................................... 27 2. GPF PERFORMANCE REPORT 2017/2018 ..................................................................................................................... 29 PART C: GOVERNANCE......................................................................................................... 51 PART D: HUMAN RESOURCE MANAGEMENT ........................................................................... 67 1. INTRODUCTION ........................................................................................................................................................... 68 2. HUMAN RESOURCE OVERSIGHT STATISTICS ................................................................................................................. 70 PART E: FINANCIAL INFORMATION ....................................................................................... 76 1. REPORT OF THE AUDITOR GENERAL ............................................................................................................................. 77 2. ANNUAL FINANCIAL STATEMENTS ............................................................................................................................... 82 2 GPF ANNUAL REPORT 2017/18 Sethitho Projects cc - Rayton ANNUAL REPORT 2017/18 GPF 3 Lavigen Loft - Vanderbijlpark 4 GPF ANNUAL REPORT 2017/18 PART A GENERAL INFORMATION Toproot Management - Pennyviille ANNUAL REPORT 2017/18 GPF 5 1. General Information Country of incorporation and domicile South Africa Nature of business and principal activities Gauteng Provincial Government Co-founder and Enabler of Mega Projects in Gauteng Registered offi ce, 82 Grayston Drive, Sandton, Johannesburg, 2196 Postal address PO Box 652247 Benmore 2010 Executive authority Member of Executive Council (MEC) Website address www.gpf.org.za Bankers Absa Bank Limited 15 Troye Street Johannesburg 2001 Auditors Auditor General South Africa Registered Auditors 61 Central Street Houghton Johannesburg 2193 Company registration number IT2422/02 Attorneys Hogan Lovells Inc. Contact details 011 685 6600/ [email protected] 6 GPF ANNUAL REPORT 2017/18 2. List 0f Abbreviations /Acronyms AGSA Auditor-General South Africa APP Annual Performance Plan B-BBEE Broad-Based Black Economic Empowerment CEO Chief Executive Offi cer CFO Chief Financial Offi cer CIO Chief Investment Offi cer CSI Corporate Social Investment EEEPF Entrepreneur Empowerment Property Fund FICA Financial Intelligence Centre Act GDHS Gauteng Department of Human Settlements GDP Gross Domestic Product GPF Gauteng Partnership Trust T/A Gauteng Partnership Fund with registration number IT2422/02 registered as a Schedule 3C public entity under the PFMA GPF Gauteng Provincial Government ICT Information and Communication Technology M&E Monitoring and Evaluation MEC Member of Executive Council for Human Settlements MTEF Medium-term Expenditure Framework NDP National Development Plan PFMA Public Finance Management Act, Act No. 1 of 1999 as amended PPP Public-private Partnerships RHF Rental Housing Fund SCM Supply Chain Management SHF Social Housing Fund SHI Social Housing Institutions SMME Small, Medium and Micro Enterprises TR Treasury Regulations PIC Public Investment Corporation Futuregrowth Futuregrowth Asset Management NHBRC National Housing and Building Regulatory Council ANNUAL REPORT 2017/18 GPF 7 3. FOREWORD BY THE MEC Honourable Dikgang Uhuru Moiloa MEC Dignity and prosperity for all can only be realized if we take a more inclusive approach towards development. Hence the focus of our province over the next 15 years is on building a new Gauteng with a radically transformed economy and spatial spaces along identifi ed development corridors of the Gauteng City Region. It is against this backdrop that as we build mega human settlements, we are doing so guided by a shift away from sporadic, uncoordinated and unsustainable housing developments towards those that are developed hand-in-hand with other socio-economic projects. These integrated human settlements developments which are on well-located and strategic land will enable both low and high-income earners to live in and access the same social and economic amenities within the same vicinity. With its revised mandate and vision to be the Gauteng Provincial Government’s co-founder and enabler of Mega Projects in the province, the Gauteng Partnership Fund (GPF) will be a critical player in our new approach. Our efforts will be geared towards transforming the spatial landscape of Gauteng, build cohesive and sustainable communities and provide our residents with security of tenure and a choice of housing options. The active participation and support of communities who benefi t from housing delivery and the need for partnerships with the private sector to leverage funds and contribute their accumulated knowledge and experience to meet our targets is crucial to overall success of these initiatives. The GPF’s reputation for sound fi nancial management, good governance and its track record of clean fi nancial audits- along with its history for leveraging additional capital - makes the organisation well equipped to crowd in private sector investment into the social housing and GAP housing markets. Through its revised mandate, we trust that the GPF will succeed in growing strategic and sustainable partnerships with the private sector,donor community and the development fi nance institutions in order to mobilise the requisite housing development funds. 8 GPF ANNUAL REPORT 2017/18 3. FOREWORD BY THE MEC The GPF will work even closer with the Gauteng Department of Human Settlements and we will ensure that the existing blockages and red tape that might delay delivery of these projects are removed and that adequate resources are allocated. We have great confi dence in the ability of the Board of Trustees and Executive Management of the Gauteng Partnership Fund to deliver on this crucial mandate of providing decent shelter especially to the less privileged. Together with the people of Gauteng we are looking forward to you playing a pivotal role in the accelerated implementation of our strategies. Mr. DU Moila, MPL MEC: COOPERATIVE GOVERNANCE, TRADITIONAL AFFAIRS AND HUMAN SETTLEMENTS ANNUAL REPORT 2017/18 GPF 9 4. REPORT OF THE CHAIRPERSON Lindiwe Mthimunye-Bakoro Chairperson Dear valued stakeholders, I am pleased to present the Gauteng Partnership Fund’s (GPF) Annual Report for the year ended 31 March 2018. During the previous fi nancial year, the mandate of the GPF was expanded and now goes beyond its previous focus of providing fi nancing solutions for social and affordable housing, to being the fi nancing vehicle and an implementing agent of the Gauteng Department of Human Settlements (GDHS) for identifi ed Mega Human Settlements. The revised mandate entails the following four (4) core functions: 1. Raising and managing the capital required for successful implementation of identifi ed Mega Projects in Gauteng Province; 2. Providing project management support in the implementation of the identifi ed Mega Projects; 3. Managing identifi ed strategic brownfi elds developments that improve existing settlements and generate additional revenue required by the GPF and contributes to capital raising targets; and 4. Serving as a turnkey developer for identifi ed Mega Projects to be developed on strategic public land. This revised mandate necessitated a review of the suitability of the GPF’s legal structure to effectively drive the implementation of the revised mandate. We have embarked on a process to revise the corporate form of the GPF to one that establishes it as a statutory provincial government business enterprise listed