Pretoria: The Department of Human Settlements (DHS) has disputed media reports alleging that governance has collapsed at the entities under the department. ‘This reportage is devoid of truth and relies on unverified and inaccurate information,’ the department said in a statement. It added that any insinuation that governance has collapsed at all DHS entities is ‘gossip mongering’. Out of the six entities, said the department, only the National Housing Finance Corporation (NHFC) is currently in the process of appointing a board, with the rest already having board members.
According to South African Government News Agency, the department reiterated that four entities have Accounting Officers. With regard to the NHFC, the CEO Azola Mayekiso is currently the accounting authority. The department said it has received an opinion and articulation from the National Treasury on the matter, hence guidance is being considered in line with Section 49 (3) of the Public Finance Management Act. Section 49(3) of the South African Public Finance Management Act (PFMA) allows the relevant treasury to approve or instruct that a functionary other than the board or CEO of a public entity be designated as the accounting authority, in exceptional circumstances. This means that the responsibility for ensuring the financial accountability of the public entity can, under specific conditions, be delegated to an individual other than the board or CEO.
Human Settlements Minister, Thembi Simelane, has registered her displeasure that there is currently no board at the NHFC and has since directed that the process to appoint a new board be expedited. The appointment process is already at an advanced stage and is expected to be concluded by May 2025. ‘The Minister also takes cognisance that this process has several inter-dependencies and may, where deemed necessary, have to go beyond the planned and scheduled deadline. There is no crisis at DHS entities [and] whatever challenges they currently experience, they are not insurmountable and are being attended to,’ the department said.
Reaffirming its commitment to good governance and transparency, the department noted that the Minister recently released a comprehensive report on the George building collapse incident, which was investigated by the National Home Builders Registration Council (NHBRC). She also briefed Parliament on several matters affecting the entities. ‘She did this purely because she believes in and upholds the principles of accountability and transparency, and the department remains undoubtedly committed to good governance,’ said the department.