Parliament, Saturday, 05 April 2025 - The Portfolio Committee on Human Settlements has called for disciplinary processes to be expedited and for officials found to be at the centre of regulatory lapses at the National Home Builders Registration Council (NHBRC), which led to the collapse of a building in George, to be held accountable. While the committee notes the CEO's suspension, it is concerned that the disciplinary process is taking time, especially considering the building collapsed eleven months ago.
"Given the tragic loss of life and the seriousness of the lapses at the NHBRC, it is only fair that the process be expedited to ensure finality of the process and accountability. The NHBRC plays a crucial role in protecting the interests of housing consumers and ensuring that builders comply with the prescribed building industry standards in the Home Building Manual. Lapses in such a crucial body are indefensible and demand urgent consequence management," said Mr Nocks Seabi, Committee Chairperson.
The failure of systems at the NHBRC casts doubt on the entity's credibility and ability to deliver on its mandate. The fact that the development was enrolled after construction started highlights the longstanding concern about the NHBRC's monitoring capacity. Also, the fact that the internal controls systems within the NHBRC were inefficient in preventing enrolment because of a lack of material information, such as structural engineering drawings and technical details, undermines the entire ethos and need for the council.
Furthermore, the committee is concerned about the recruitment processes within the NHBRC following the revelation that the CEO had to perform the supervisory responsibilities of two new executive managers whose performance was unsatisfactory. "The appointment of executives unable to play their supervisory role points to weak recruitment processes undermining the entity's mandate," Mr Seabi said.
Meanwhile, the committee has called for a comprehensive review of processes and internal control systems within the NHBRC to ensure that such a tragic event doesn't happen again. The review should also ensure that the registration process is enhanced and followed to the latter to prevent any future lapses.
The committee has also called for municipalities to actively play their role in ensuring building standards. While the committee notes the fiscal pressures that prohibit the appointment of inspectors, it called for collaborations along the value chain to ensure the proper monitoring of developments and protect consumers.
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While the committee welcomed the assurance that all officials identified to have contributed to the regulatory lapses, it has called for the speedy conclusion of those processes. The disciplinary processes must happen in tandem with the review of internal controls of systems at the NHBRC. The committee welcomed the assurance that the matter is now a criminal matter and that a criminal investigation is being pursued against the contractor and officials of the NHBRC. "Because of the gravity of the incident and the great loss of life, consequence management and accountability are critical," Mr Seabi said.
Meanwhile, regarding the National Housing Finance Corporation, the committee raised concerns that despite the findings by the Office of the Auditor-General and the National Treasury that the lease of office space at 90 Grayston Drive was irregular, there is no update on how the entity will resolve the matter and ensure consequence management.
The committee also expressed concern that the Council of the Social Housing Regulatory Authority (SHRA) has resolved to review the CCMA ruling relating to the termination of employment of the Chief Executive Officer and Corporate Services Manager at the end of the probation period. The committee expressed concern in the context that the review and the proposed settlement carry financial repercussions. The committee will await a full report on the matter.
