Human Settlements Dismisses Reports of Governance Breakdown

The department underscored that governance structures remain functional and that any narratives claiming otherwise amount to “gossip mongering.”

The Department of Human Settlements (DHS) has strongly rejected recent media reports suggesting that governance has disintegrated across the entities operating under its jurisdiction. In a comprehensive statement released this week, the department described the claims as “devoid of truth,” stating that the reports relied on “unverified and inaccurate information.”

Refuting allegations of widespread dysfunction, the department emphasized that only one of its six associated entities — the National Housing Finance Corporation (NHFC) — is currently in the process of finalizing its board appointments. The remaining five entities, according to the DHS, have fully constituted boards in place, effectively quashing media insinuations of systemic governance failure.

Clarification on Governance and Oversight Across DHS Entities

The department underscored that governance structures remain functional and that any narratives claiming otherwise amount to “gossip mongering.” It elaborated that four out of the six entities also have duly appointed Accounting Officers, reaffirming operational accountability in line with public sector mandates.

With respect to the NHFC, where board appointments are still pending, the department clarified that CEO Azola Mayekiso currently serves as the Accounting Authority. This designation is consistent with provisions of the Public Finance Management Act (PFMA), which governs fiscal responsibility within public institutions.

Legal Backing and Treasury Engagement Cited

DHS pointed out that it is actively engaging with the National Treasury regarding the NHFC leadership arrangement. The engagement is guided by Section 49(3) of the PFMA, which permits the Treasury, in exceptional cases, to designate a person other than the board or CEO as the accounting authority of a public entity. This clause is invoked to ensure seamless financial oversight when standard governance structures are temporarily incomplete or in transition.

Such legal provisions, DHS asserts, validate the current setup and demonstrate a proactive approach to maintaining governance integrity during the transitional phase at the NHFC.

Minister Simelane Orders Acceleration of NHFC Board Appointments

Minister of Human Settlements, Thembi Simelane, has expressed clear dissatisfaction with the delay in appointing the NHFC board and has directed that the process be expedited. According to the department, the appointment process is already well underway and is expected to be finalized by May 2025.

However, the department cautioned that this timeline could be adjusted depending on the progression of interdependent processes, which may impact the final stages of board formation. Despite this, DHS reassured the public that there is no governance crisis and that any current challenges are being actively addressed and are far from insurmountable.

Commitment to Transparency and Recent Oversight Actions

Demonstrating its commitment to transparency and oversight, the department highlighted Minister Simelane’s recent actions to ensure accountability. She has released a detailed report on the George building collapse, which was independently investigated by the National Home Builders Registration Council (NHBRC). The findings of the report were made public, reinforcing the department’s dedication to public accountability.

Additionally, Minister Simelane has briefed Parliament on a range of critical issues affecting DHS entities. These actions, the department noted, underline her adherence to the principles of good governance and transparency, even in the face of complex operational challenges.

No Collapse, Just Constructive Oversight

In conclusion, the Department of Human Settlements reiterated its firm stance that governance has not collapsed across its entities. It characterized the media reports to the contrary as misleading and emphasized that its institutions remain operationally sound. By engaging legal frameworks, accelerating leadership appointments, and embracing transparency, the department continues to demonstrate its resolve to uphold strong governance and public trust.

As DHS moves forward with strengthening oversight and finalizing governance structures, it calls for accurate and responsible journalism that supports rather than undermines public confidence in state institutions.