Media briefing by the Minister of Human Settlements, Mr TMG Sexwale on NHBRC issues

28 Jun 2011

Following the reply that I, as Minister, made in Parliament regarding conflict of interest within the National Home Builders Registration Council (NHBRC), I undertook to brief the Portfolio Committee on Human Settlements about further details.

The matter at hand is as follows: A senior official within the Special Investigating Unit (SIU), Ms Vanessa Somiah, entrusted by the SIU with the task of investigating corruption allegations within the NHBRC at the request of the Ministry of Human Settlements, was at the same time secretly being offered or applied for a senior post in the selfsame NHBRC in collusion with one of the persons under investigation, namely Mr Sipho Mashinini, the CEO of NHBRC.

It came to light that, at the same time as she was in the process of working on the report for the Department of Human Settlements, she was ostensibly negotiating with, and subsequently became employed by the NHBRC at almost twice the salary she was earning at the SIU.

Within weeks of her employment, the NHBRC whilst conducting some kind of disciplinary action against its employees, listed Ms Vanessa Somiah as a witness against some of them who were whistleblowers whilst she was at the SIU. It is quite clear to any thinking person what the objectives of all these machinations were about.

I regard all this as not only devious but also shocking, to realise how some of those who are supposed to be in authority in our campaign against corruption can undertake such reprehensible measures to undermine this fight.

Background to this NHBRC saga

• The SIU was established by Presidential Proclamation in terms of the Special Investigating Units and Special Tribunals Act.
• The NHBRC was established in terms of the Housing Consumer Protection Measures Act.
• The Protected Disclosures Act protects whistleblowers from any form of victimisation.
• The Prevention and Combating of Corrupt Activities Act empowers all citizens to report corruption.
• The Department of Human Settlements mandated the SIU in terms of Proclamation R7 of 2007 to investigate corruption within the housing sector.
• Last year I established the National Audit Task Team, working together with the SIU to deal with the scourge of corruption within the housing sector.

Several people, whistleblowers included, plus a member of the Portfolio Committee, Mr Steyn, raised with the Department concerns regarding possible conflict of interest and corruption at the NHBRC.

I mandated the SIU to undertake investigation into these allegations in line with the terms of reference for the National Audit Task Team referred to above.

The SIU produced a report on this investigation, a closer study of which revealed serious discrepancies which warranted proper analysis.

Actions taken by the minister

The Council of the NHBRC has been requested to explain Ms Vanessa Somiah's irregular appointment.

In respect of the CEO, Mr Mashinini, the Council has been advised to investigate certain specific allegations against him including the appointment of Ms Vanessa Somiah.

The Council has been further advised that investigations around Mr Mashinini ought not to be conducted whilst he is in office.

To date, the Council has always assured me of its complete cooperation with the Ministry and the SIU in respect of the original investigation which triggered all the above and related matters. Its previous chairperson, who is also under investigation, tendered her resignation last year.

This briefing is being brought to the attention of the Human Settlements Portfolio Committee as was undertaken by myself to Parliament last week. It is our considered view that this matter, although the entire NHBRC investigation is still to be concluded, has become a matter of public interest.

Let me assure everyone as I did in Parliament that no stone will be left unturned to get to the bottom of the saga. The fight against corruption must not just be spoken about - it must be seen to be done.

Our mandate of Human Settlements requires us to be vigilant in the protection of public funds. The NHBRC which, as a regulatory body, is virtually the monitor or "police" of our Department regarding the construction of housing country-wide. It must therefore continue to be seen as such.

Statement issued by the Department of Human Settlements, June 28 2011

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