DA puts Community Schemes Ombud to terms
18 March 2022
The DA welcomes the Community Schemes Ombud Service (CSOS) pledge to Parliament to finally investigate and resolve the increasingly serious challenges faced by members of community schemes across South Africa.
For some time, this entity has been embroiled in serious controversy - notwithstanding the R80 million worth of scheme funds illegally invested in the VBS bank heist.
Mounting calls for assistance from both ordinary scheme members and senior industry players have gone unheard.
Having had their cries ignored, these stakeholders are now turning to the DA for assistance.
This week, CSOS appeared before the Portfolio Committee of Human Settlements and despite efforts by the Deputy Minister to silence the DA, the Chief Ombud, Adv. Boyce Mkhize, was finally put to terms.
Allegations levelled at the entity by industry stakeholders include:
1. The irregular issuing of Practice Directives not provisioned for in legislation;
2. Excessive delays and errors in the process of dispute resolution and adjudication;
3. The application of strict BBEEE criteria in the appointment of the Executive Management Agent (EMA) panel – with one single bid having qualified in the Western Cape, and;
4. The protection of delinquent owners via the incorrect application of the Prescription Act in terms of levy write offs;
In addition, owners in sectional title schemes are being denied access to essential body corporate records listed in Management Rules 26 and 27 under the Sectional Titles Schemes Management Act, ostensibly because of the Protection of Personal Information Act (POPIA).
We are deeply concerned about this, as Rules 26.(2) and 27.(4) give all owners the right to access all of this information on request. The POPI Act itself makes provision for critical exemptions that protect the transparency of management in sectional title schemes.
Owners are now routinely being denied access to financial records, minutes of trustees' meetings, and even the names and contact details of co-owners. This is particularly troubling, as it prevents concerned owners in distressed schemes from calling general meetings, as is their right in terms of Management Rule 17.(4)(a).
These ongoing issues have the potential to impact in excess of 20 million South Africans, residing in over 78 000 sectional title schemes across the Country, representing over R800 billion in managed assets.
The DA calls on all community scheme owners, trustees, community scheme managers and industry professionals who are experiencing problems with the CSOS to send your complaints to: [email protected].
A dossier of such complaints will be delivered to the Chief Ombud by the DA on Monday, 4thApril 2022 and adequate resolution to each and every issue will be requested in line with commitments now made before Parliament.
Should these issues not be adequately addressed, the DA will consider its legal options.
Issued by Emma Powell, DA Shadow Minister for Human Settlements, 18 March 2022
