Money woes for hous­ing de­part­ment


TWO en­ti­ties within the De­part­ment of Hu­man Set­tle­ments are on the brink of col­lapse.

In a par­lia­men­tary port­fo­lio com­mit­tee meet­ing it was said by the de­part­ment that two en­ti­ties were fac­ing fi­nan­cial dif­fi­cul­ties.

“We are not very happy with the fact that it does not look like they are go­ing to meet their tar­gets for this term, but we con­tinue to en­gage with them,” said No­cawe Mafu, the chair­per­son of the port­fo­lio com­mit­tee.

The com­mit­tee in­vited all the en­ti­ties – the Na­tional Hous­ing Fi­nance Cor­po­ra­tion (NHFC); Na­tional Ur­ban Re­con­struc­tion and Hous­ing Agency (Nur­cha); Ru­ral Hous­ing Loan Fund (RHLF); So­cial Hous­ing Reg­u­la­tory Author­ity (SHRA); Na­tional Home Builders’ Reg­is­tra­tion Coun­cil (NHBRC); Hous­ing De­vel­op­ment Agency (HDA); Es­tate Agency Af­fairs Board (EAAB); and the Com­mu­nity Schemes Om­bud Ser­vices (CSOS) – for de­lib­er­a­tions on their an­nual per­for­mance and fi­nan­cial re­ports.

The en­gage­ments started with a dis­cus­sion with the de­part­ment on its au­dit out­comes for the 2017/18 fi­nan­cial year, as well as its per­for­mance and fi­nan­cial ex­pen­di­ture as per as­sess­ment by the De­part­ment of Plan­ning Mon­i­tor­ing and Eval­u­a­tion and the au­di­tor-gen­eral.

The Hous­ing De­vel­op­ment Agency man­aged to de­liver 1325 hous­ing units in the West­ern Cape, ex­ceed­ing their hous­ing tar­get by 399 hous­ing units, while the So­cial Hous­ing Reg­u­la­tory Author­ity man­aged to de­liver only 1129 hous­ing units in the West­ern Cape.

“Al­though the com­mit­tee was gen­er­ally sat­is­fied with the per­for­mance of the de­part­ment and some of its en­ti­ties, it was par­tic­u­larly con­cerned about the per­for­mance of the EAAB and SCOS and called for the min­is­ter and the de­part­ment to in­ter­vene to save the in­sti­tu­tions from to­tal col­lapse,” Mafu said.

“We have di­rected the de­part­ment to develop a turn­around strat­egy to as­sist the two en­ti­ties and re­port back to Par­lia­ment in six weeks’ time.”

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