Parliament, Thursday, 5 June 2025 – The Portfolio Committee on Human Settlements has welcomed the assurance from the Minister of Human Settlements that she will give the incoming board of the National Housing Finance Corporation (NHFC) 30 days to deal with some of the issues contained in the close-out report of the previous Board, including various allegations against the CEO.
The committee held a meeting with the Minister and senior management of the Department of Human Settlements to discuss various allegations of impropriety, including an irregular office space lease agreement, unauthorised international trips, workplace bullying and dictatorship, misuse of company credit card and fraud and unlawful appointments. While the committee noted that the previous Board had done some work to probe the allegations, the matters were not finalised.
“It is important that the incoming Board adheres to the deadline of 30 days set by the Minister to complete investigations on less complex matters and 90 days on the complex and engaged matters. The committee will await a full report on the investigations and consequence management thereof,” said Mr Nocks Seabi, the Chairperson of the committee.
Meanwhile, the committee raised concerns about reports of low morale at the entity and the impact this will have on the delivery of its mandate. Despite this, the committee agreed with the Minister that the payment of ex gratia to the staff is not sustainable and does not resolve underlying issues encountered by the entity’s employees. A comprehensive approach, looking at causal factors and associated solutions, was necessary to ensure a culture of high performance standards.
The NHFC plays a critical role in providing innovative and affordable housing finance solutions for the low-to-middle-income market, and the current allegations will impact on the ability of the entity to serve this critical market. “It is critical that good governance and a culture of performance be entrenched within the entity to ensure that it functions optimally. It is therefore critical that the incoming board expedites the finalisation of these allegations,” Mr Seabi said.
Meanwhile, the committee also received an update on the implementation of the First Home Finance programme. The committee welcomed the policy shift that now also allows non-mortgage applications for individuals living in rural areas on traditional land. This approach will ensure rural development and reduce the increased migration to cities that places undue pressures on social infrastructure. The committee encourages qualifying individuals in rural provinces, such as Limpopo, Eastern Cape, KZN and Mpumalanga, to apply and access the products offered by the programme.
Also, the committee welcomed the information that the FHF programme has greatly benefited women, with 59% of applications approved by the NHFC.
Despite this, the committee has called on the department and the NHFC to increase awareness of the FHF products and the application process. “It is necessary that the people are aware of the products as well as the online platform for applications. Enhanced communication and marketing of the products will increase uptake and will lead to more people owning their properties. Also, the introduced non-mortgage products benefiting people in rural areas must be extensively marketed,” Mr Seabi concluded.
ISSUED BY THE PARLIAMENTARY COMMUNICATION SERVICES ON BEHALF OF THE CHAIRPERSON OF THE PORTFOLIO COMMITTEE ON HUMAN SETTLEMENTS, MR NOCKS SEABI.
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