Human Settlements Minister Tokyo Sexwale is to engage with the National Home Builders Registration Council (NHBRC) over serious alleged conflicts of interest involving both the council's chairwoman and chief executive.
It is alleged that NHBRC chief executive Sipho Mashinini was awarded a contract worth about R32 million to build houses for the Gauteng Housing Department, while NHBRC chairwoman Granny Seape was awarded a contract worth about R70m to provide outsourcing services to the NHBRC.
The contract awarded to Mashinini apparently made provision for a second phase comprising 832 units costing R45m.
Chris Vick, a special advisor to the human settlements minister, said yesterday that Sexwale was studying the two matters and would comment after engaging with the NHBRC.
The NHBRC is a statutory body created to protect housing consumers against unscrupulous homebuilders and manage a warranty fund in the event of claims by homeowners against builders who do not fulfil their obligations.
Butch Steyn, the DA's spokesman on human settlements, said the award of these contracts involved a conflict of interests, which pointed to serious management problems within the NHBRC.
Steyn questioned how the NHBRC could provide proper oversight if the individuals heading up the council had personal financial interests in the same industry.
He claimed Seape was also the chief executive of Ahanang Hardware and Construction, a company not only involved in the construction of credit-linked housing, but now also providing inspectors to the NHBRC.
Ahanang was currently the service provider for the outsourced inspectorate for the NHBRC in Gauteng and this contract was worth about R70m, said Steyn.
"Considering Ahanang is also involved in the construction of houses which have to be registered and inspected by NHBRC, her (Seape's) very senior position in the NHBRC is therefore sufficient to appear to influence the objective exercise of her official duties and may place undue influence on staff who are directly beholden to her for their employment through Ahanang."
He said the DA would bring these apparent conflicts of interest to the attention of Sexwale and pose parliamentary questions to determine whether the correct tendering procedures were followed in the awarding of the tenders and on what basis the tenders were awarded to Mashinini and Seape.
It is alleged that NHBRC chief executive Sipho Mashinini was awarded a contract worth about R32 million to build houses for the Gauteng Housing Department, while NHBRC chairwoman Granny Seape was awarded a contract worth about R70m to provide outsourcing services to the NHBRC.
The contract awarded to Mashinini apparently made provision for a second phase comprising 832 units costing R45m.
Chris Vick, a special advisor to the human settlements minister, said yesterday that Sexwale was studying the two matters and would comment after engaging with the NHBRC.
The NHBRC is a statutory body created to protect housing consumers against unscrupulous homebuilders and manage a warranty fund in the event of claims by homeowners against builders who do not fulfil their obligations.
Butch Steyn, the DA's spokesman on human settlements, said the award of these contracts involved a conflict of interests, which pointed to serious management problems within the NHBRC.
Steyn questioned how the NHBRC could provide proper oversight if the individuals heading up the council had personal financial interests in the same industry.
He claimed Seape was also the chief executive of Ahanang Hardware and Construction, a company not only involved in the construction of credit-linked housing, but now also providing inspectors to the NHBRC.
Ahanang was currently the service provider for the outsourced inspectorate for the NHBRC in Gauteng and this contract was worth about R70m, said Steyn.
"Considering Ahanang is also involved in the construction of houses which have to be registered and inspected by NHBRC, her (Seape's) very senior position in the NHBRC is therefore sufficient to appear to influence the objective exercise of her official duties and may place undue influence on staff who are directly beholden to her for their employment through Ahanang."
He said the DA would bring these apparent conflicts of interest to the attention of Sexwale and pose parliamentary questions to determine whether the correct tendering procedures were followed in the awarding of the tenders and on what basis the tenders were awarded to Mashinini and Seape.
- Business Report
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