Alleged conflicts of interest over contracts worth at least R100-million form part of a Special Investigating Unit probe of the National Homebuilders Registration Council (NHBRC), the agency that polices building standards.
The issue hit the headlines this week when it was revealed that a lead SIU investigator had taken a job at the NHBRC at a significantly higher salary after producing a report that cleared the council of corruption. The official in question, Vanessa Somiah, has been placed on special leave.
On Tuesday this week, Human Settlements Minister Tokyo Sexwale and SIU chief Willie Hofmeyer revealed that Somiah, the lead investigator of conflicts of interest and corruption allegations at the council was “secretly offered or applied” for a senior post at the institution, “in collusion” with its chief executive, Sipho Mashinini, one of the people under scrutiny.
Following investigation into the NHBRC, which according to the SIU began last year, Somiah joined the NHBRC in May. This was after filing what the clearly irate minister called a “whitewashed” report on the graft allegations.
She took up a newly created post as head of enforcement and compliance at the council at double the salary she had earned at the SIU, or about R1.4-million.
At a media conference in Parliament, Sexwale said that the allegations that prompted the initial investigations were brought by whistle-blowers the National Education, Health and Allied Workers Union (Nehawu) and Butch Steyn, the Democratic Alliance member of Parliament’s human settlements committee.
Last year, Steyn made allegations in the National Assembly of conflicts of interest involving both chief executive Mashinini and the council’s former chair, Granny Seape.
In April last year, Steyn said that there were claims that Mashinini, representing a company called Devgroep Investment, signed a contract with the Gauteng department for local government and housing to build low-cost houses, a copy of which the Mail & Guardian has seen.
The contract, to build 600 homes, was valued at R32-million and included a potential second leg to build a further 800 units valued at about R45-million. Steyn called into question Mashinini’s ability to act as a regulator when he had a “vested interest” in a company responsible for the building of RDP homes.
Under investigation
In June last year, during the human settlements budget vote, Steyn went on to allege that the then chair of the NHBRC, Seape, had a R70-million contract with the NHBRC for the outsourcing of inspectors in Gauteng through her company Anahang Hardware and Construction. He also said Anahang was involved in the construction of credit-linked housing.
Seape has since resigned, but Sexwale said at this week’s press briefing that the former chair was still under investigation. Neither the SIU nor the ministry would be drawn on the specifics of the broader investigation of the housing watchdog.
Sexwale did, however, say the matter was “just an episode, it is not the full investigation” into the corruption allegations and that it covers Mashinini and other parties within the organisation.
The minister also detailed how, shortly after her new appointment, Somiah became embroiled in an apparent witch-hunt against employees thought to have been whistle-blowers during the SIU investigation.
“Within weeks of her employment, the NHBRC, while conducting some kind of disciplinary action against its employees, listed Vanessa Somiah as a witness against some of the employees who were whistleblowers while she was at the SIU,” said Sexwale. “It is quite clear to any thinking person what the objective of these machinations was.”
Ultimately, Somiah did not testify against the employees after receiving legal advice not to do so.
Somiah was a programme manager within the SIU, responsible for all investigations of housing matters going back several years. She has been placed on special leave, which includes her salary, pending a further inquiry into her allegedly irregular appointment.
“I regard this as not only devious, but 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,” Sexwale told journalists.
‘Integrity measures’
SIU boss Willie Hofmeyer told journalists that his unit took the matter very seriously. The SIU had put in place serious “integrity measures” and the fact that this had not happened before was a good sign, he said. He was heartened that people retained “enough faith in the SIU to come back to us with the allegations [against Somiah]”.
The SIU had launched a high-level internal investigation into the matter and would review the “whitewashed” report of the original investigations at the NHBRC.
On Thursday, Vukile Mehana, the current chair of the NHBRC, confirmed that Mashinini had also been placed on special leave of absence.
He defended the council’s apparent failure to act when confronted with allegations about the apparent conflicts of interest of Mashinini and Seape.
Mehana said that both parties were believed to have declared these contracts on being appointed at the council.
Mashinini was appointed chief executive in April last year, whereas Seape was appointed along with the rest of the council in 2009 by former Housing Minister Lindiwe Sisulu.
According to Mehana, Seape’s contract with the NHBRC predated her appointment and, during her tenure, when issues regarding the inspectorate were dealt with in meetings, she recused herself.
He conceded, however, that the council had extended the contract while she was still chair, and reiterated that “when it was awarded, she was not a councillor”. Nevertheless, the NHBRC had decided to launch an independent investigation into allegations of conflict of interest and corruption, he said.
Transparency
The council has appointed executive manager Jeffrey Mahachi, as acting chief executive.
Steyn welcomed the actions taken this week, but was critical that the matter had taken so long to address.
He said Sexwale had alerted the NHBRC to allegations raised last year “in the interests of transparency” and queried the minister’s reasons for this decision, saying it could have alerted parties ahead of any investigation.
In an emailed response to follow-up questions, the minister said that the matter of a conflict of interest within the NHBRC was initially raised in the form of formal questions in Parliament.
Following this, the “minister applied his mind through consultation with the legal service within the department over a period and thereafter acted decisively within the law by referring the matter to the SIU”.
Sexwale’s office confirmed that the former chair had made known her possible conflict of interest, but that this did not draw his suspicion as she had “long been in the position”.
“However, subsequently, when the extent of the conflict was revealed, the minister took the decision to inform the board appropriately, whereupon the chair opted to resign,” the ministry said.
The M&G was unable to reach Mashinini for comment. Questions sent to Seape had not been answered at the time of going to press.