In April, the Democratic Alliance (DA) revealed that the CEO of the National Home Builders Registration Council (NHBRC), Sipho Mashinini, had been awarded a contract worth an estimated R32-million to construct houses for the Gauteng Department of Local Government and Housing. Provision was made in the contract for a second phase for 832 units at an approximate cost of R45 million. We can now reveal that this apparent conflict of interest is not only confined to the CEO through his direct involvement in the provision of subsidised houses, but that the Chairperson of the board of the NHBRC, Granny Seape, was awarded a contract worth an estimated R70-million to provide outsourcing services to the NHBRC.

This points to serious management problems within the NHBRC. How can the NHBRC provide proper oversight if the individuals heading it up have personal financial interests in the very same industry?

The NHBRC is a statutory body created to protect housing consumers against unscrupulous home builders and manage a warranty fund in the event of claims against such builders who do not fulfil their obligations. In addition to being chairperson of the NHBRC board, Ms Seape is also the CEO of Anahang Hardware and Construction, a company not only involved in the construction of credit-linked housing, but now also providing inspectors to the NHBRC. Currently, Anahang is the service provider for the Outsourced Inspectorate for the NHBRC in Gauteng - a contract worth an estimated R70-million. Considering that Anahang is also involved in the construction of houses which have to be registered and inspected by NHBRC, her 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 Anahang.

In April, the Democratic Alliance (DA) revealed that the CEO of the NHBRC, Sipho Mashinini, had been awarded a contract worth an estimated R32-million to construct houses for the Gauteng department of Local Government and Housing. Provision was made in the contract for a second phase for 832 units at an approximate cost of R45 million. We brought this issue to the Minister of Human Settlements in Parliament.

Ms. Seape appears to have conflated her interests in a private company with her position at the NHBRC - she and her staff are even portrayed on Ahanang's company website in NHBRC t-shirts. It is also interesting to note that Ahanang's other clients, according to the website, include the Centurion Town Council and the Gauteng Department of Housing.

The DA will be bringing this apparent conflict of interest to the attention of the Minister, and will also pose parliamentary questions with the intention of ascertaining, firstly, whether the correct tendering procedures were followed in the awarding of these tenders and secondly, on what basis the tenders were awarded to Mashinini and Seape.

Statement issued by Butch Steyn, MP, Democratic Alliance shadow minister of human settlements, June 7 2010

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