South Africa's housing crisis deepens as R34 billion budget faces backlash over corruption and inefficiency
Political parties have rejected the Department of Human Settlements' R34 billion budget for the 2025/26 financial year, accusing the department of mismanagement, inefficiency, and making promises that will not materialise.
Democratic Alliance (DA) Member of Parliament Luyuyo Mphiti, quoting President Cyril Ramaphosa, warned that unchecked corruption threatens to erode faith in democracy itself.
'If corruption is not arrested, the greatest damage will not be in the funds stolen, the jobs lost, or the services not delivered. The greatest damage will be in the belief in democracy itself.'
Mphiti pointed to what he called a 'catastrophic collapse' within the department, citing ongoing investigations, suspensions, and resignations of senior officials across major housing entities such as the National Home Builders Registration Council (NHBRC), the Social Housing Regulatory Authority (SHRA), and the National Housing Finance Corporation (NHFC).
He criticised the appointment of Human Settlements Minister Thembi Simelane, referring to corruption allegations and an active SAPS investigation.
This comes after revelations that, during her tenure as mayor at the Polokwane Municipality, Simelane took a loan from Gundo Wealth Solutions through the now-defunct VBS Mutual Bank to purchase a coffee shop in Sandton.
'Minister Simelane cannot be trusted with a single rand, let alone R33 billion of this budget,' Mphiti said. 'The dysfunction is impeding the delivery of affordable housing in our country.'
Simelane tabled the Department of Human Settlements' 2025/26 Budget Vote under the theme 'Leveraging technologies for resilient, sustainable human settlements,' pledging to deliver over 41,944 housing units, 32,250 serviced sites, 3,000 social housing units, and eradicate 8,047 mud houses.
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The Citizen
8 hours ago
- The Citizen
EFF asks Ramaphosa for clarity on new lotto operator and alleged ties to Mashatile
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'Grave concern' In the letter, Malema expressed 'grave concern' over the apparent politics of patronage and the 'intricate web of familial and political connections'. He said the EFF had previously cautioned against this appointment due to, among other things, Zungu and Tembe's affiliation with the ANC. 'The involvement of the Deputy President adds a troubling dimension to this matter. It has come to light that Khumo Bogatsu – a co-owner of Bellamont Gaming, which is also a shareholder in Sizekhaya Holdings – is the twin sister of South Africa's Second Lady, Humile Mashatile, the wife of Deputy President Paul Mashatile,' Malema wrote. 'Furthermore, Ms Bogatsu is engaged to businessman Sbu Shabalala, who is a cousin of Moses Tembe, the lead figure in Sizekhaya and co-owner of the Goldrush Consortium.' Malema said these links suggest the awarding of the lottery licence may have been influenced, which constitutes state capture. 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TimesLIVE
9 hours ago
- TimesLIVE
Parties support Nkabane's education vote, staying out of ANC/DA spat
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The department's R142bn budget is substantial but not enough, because our crisis is not just funding — its spatial, access, and a system that is failing the poor. "Nowhere is that failure more glaring than in NSFAS. I'm a product of it, many of us are, but what we see today is heartbreaking because hyenas and tenderpreneurs are circling what should be a lifeline for our students. That R95bn for NSFAS has to go to students, not middlemen.' Despite the minister conceding that there is a R1.4bn deficit in the universities' budget, she vowed that the NSFAS budget would 'not be sufficient to meet the growing demand for access to higher education". NSFAS funding sits at R48.7bn this year, with further increases planned in the coming years. Nkabane's budget covered key higher education sectors, detailing that TVET colleges are to receive R14bn, up from R13.1bn last year. The combined allocation for Sector Education and Training Authorities and the National Skills Fund is R26bn. Meanwhile, university education rises from R91.7bn in 2024 to R96bn this year alone.
TimesLIVE
11 hours ago
- TimesLIVE
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