a day ago
South Africa's housing crisis deepens as R34 billion budget faces backlash over corruption and inefficiency
DA and EFF slam Simelane's budget, raising concerns over a VBS-linked loan, stalled projects, and inflation's impact on delivery amid a 2.3 million-unit housing backlog.
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.
