Parliament, Friday, 27 February 2025 – The Portfolio Committee on Human Settlements has expressed grave concern over delays on the part of the Social Housing Regulatory Authority (SHRA) in producing a plan to unblock stalled housing projects across the country. The committee held an engagement with the Minister of Human Settlements, senior departmental executives and entities reporting to the Department of Human Settlements.
As a result of the delay, the committee resolved that it would not entertain any SHRA report that has not first been presented to the Minister of Human Settlements and received concurrence from National Treasury.
“The committee has placed the unblocking of blocked projects as a major strategic output of this term and the delay in producing a plan is unacceptable to say the least. The entity and its board have a responsibility, not only to the department and Parliament, but to the people of South Africa directly affected by delays brought about by blocked projects. We have given the Minister space and time to engage SHRA to emphasise the importance of this plan and the urgency needed to produce and implement it,” said committee chairperson Nocks Seabi.
SHRA Is expected to provide a comprehensive report detailing a full list of blocked projects, the impact of the stalled developments, funding sources and financial instruments to be used to unblock the projects. The entity will be invited to a future meeting to formally table the report.
NHFC turnaround welcomed, but vacancies raise concern
The committee welcomed improvements in governance and operations at the National Housing Finance Corporation (NHFC), noting that the new board has developed a turnaround blueprint titled “Reposition and Recalibrate the NHFC for Optimal Performance”. The plan aims to strengthen operations, rebuild institutional capacity, restore public confidence and improve staff morale through clear priorities and measurable deliverables.
However, the committee raised alarm over critical executive vacancies, including the absence of a chief information officer, chief people officer, chief risk officer, chief financial officer, chief operations officer and corporate finance executive. The board was urged to urgently fill these positions to ensure effective implementation of the turnaround strategy.
Investigation and lifestyle audits welcomed
The committee also welcomed the precautionary suspension of the NHFC CEO and company secretary pending an investigation into allegations of financial misconduct, including possible contraventions of the PFMA, governance irregularities and interference in HR processes. The board was urged to conclude the investigation swiftly to avoid prolonged suspensions.
In addition, the committee supported the implementation of lifestyle audits for senior executives and supply chain officials, conducted in collaboration with the Special Investigating Unit, saying the process would strengthen governance and accountability.
HDA property acquisitions supported, but development timelines needed
Regarding property acquisitions by the Housing Development Agency, the committee welcomed the strategic purchase of buildings located close to economic centres, noting their potential to reverse apartheid-era spatial planning patterns that continue to marginalise low-income communities.
However, the committee stressed the need for clear development and occupation timelines, warning that delays could lead to illegal occupation and undermine the intended objectives of the projects.
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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