Page 18 - DPSA - Service Delivery Report

PUBLIC SERVICE
The objective of the resolution was to introduce a Government Employees Housing Scheme in terms of clause 4.2 of PSCBC Resolution 4 of 2010, clause 3.3 of PSCBC Resolution 2 of 2011 and clause 19 of PSCBC Resolu- tion 1 of 2012, with the following goals:
• to support, educate and advise
employees on housing options
and opportunities;
• to enhance employees’ access to
affordable housing;
• to promote home ownership and
facilitate asset security among
employees;
• to assist employees to access
affordable housing loans and fi-
nance; and
• to assist employees to rent houses
with a view to buy and own homes.
The scheme is being implemented incrementally since the signing of the Resolution 7 of 2015. It is generally accepted that when employees’ basic needs are accommodated, their loyal- ty to service is similarly strengthened. The GEHS initiative shows that gov- ernment is a caring employer.
A significant number of public service employees still find it extremely difficult to access loans to acquire houses, with- out additional assistance. Government is providing assistance to employees with the provision of the monthly hous- ing allowance of R1336 to qualifying employees.
By 30 June 2019, GEHS has signifi- cantly increased the number of em- ployees utilising the housing allowance for home ownership. In 2015, 355 000 eligible public servants used the hous- ing allowance for home ownership. In 2019, the number had increased to 653 099. The number of employees renting had been reduced from 569 000in2015to289088in2019–asig- nificant achievement.
Employees are only able to access their savings for the purpose of ac- quiring home ownership. The number of employees who are registered as tenants continues to decrease, which is a positive sign that government’s ul- timate goal of ensuring that all public servants become homeowners is in- deed achievable.
To date, R 7.2 billion has been saved in the Individual Linked Saving Facility (ILSF), which is co-managed with Na- tional Treasury. The money belongs to the 290 000 employees who are still registered as tenants. The employees can withdraw their individual savings. The departmental human resource practitioners help facilitate access to these saving.
The focus of the ILSF is more on the 290 000 employees who are eligible to receive the Housing Allowance and do not own homes. This number has re- duced from last year’s 390 000. Their
Housing Allowance (or a portion of it) is saved in the Individual Linked Saving Facility at National Treasury.
The funding line which was made available by the Government Employ- ees’ Pension Fund (GEPF) and the Public Investment Corporation (PIC) through their investee company, SA Home Loans, have managed to assist public servants to obtain both mort- gage and non-mortgage loans. So far 11 630 housing loans worth R7.1bn were approved and disbursed by SA Home Loans.
The review of the GEHS operating model is underway and is aimed at en- hancing employee benefits. Moreover, organised labour continues to play a crucial role in contributing to the stra- tegic direction of the scheme.
The review processs includes assess- ing the work that has been done by the GEHS over the past four years (since the adoption of Resolution 7 of of 2015), including consolidating the gains and strengthening areas where there are weaknesses.
The review process will also allow the GEHS to build an operating model, and identify the capabilities that are required in order to strengthen the scheme.
But most importantly, this process will help to refine the products and ser- vices that are offered by the scheme. The suite of products and services will assist public servants across the coun- try to at least have their own homes, or to have access to decent accom- modation, which will help in affirming their dignity. All this is done in order to improve and strengthen the work of the scheme, which would lead to a full implementation of the PSCBC resolu- tions relating to the GEHS.
16 SERVICE DELIVERY REVIEW | Volume 12 No.3 of 2019