Following a direction from the previous Human Settlements minister, Mmamoloko Kubayi, to all departmental entities, the lifestyle audits began at the National Home Builders Registration Council in 2024, according to Human Settlements Department Director-General Alec Moemi, pictured.
Image: Supplied
More than 150 employees at the National Home Builders Registration Council (NHBRC) have been referred for lifestyle audits, Human Settlements Department Director-General Alec Moemi said on Wednesday.
This follows scathing findings made against the council concerning the George building collapse in May last year, that killed 34 people.
Moemi said the employees are required to explain their financial income.
Briefing the Human Settlements Portfolio Committee, Moemi said the lifestyle audit started in 2024 after a directive by former minister Mmamoloko Kubayi across the entities of the department.
The NHBRC’s lifestyle audits are not finalised and not ready for presentation to the portfolio committee.
Moemi said the lifestyle audit entailed three phases, which comprised looking at the financial profiles of the employees, corroborating information, and identifying undeclared income, as well as employees explaining unexplained wealth and identifying potential proceeds of unlawful activities.
“Unlike in the public sector, where executives declare on an annual basis income, assets, other remunerative work, inheritances, donations or sponsorship, in entities they are required to fill in those forms once and that is it.”
Moemi said phases one and two of the lifestyle audits of 82 executives and the management personnel were completed at NHBRC.
“Out of 82 employees, two employees were referred for the lifestyle audit, of which 80 have been cleared.”
Phase 1 of the institution’s 216 inspectors, supply chain, and finance personnel was also complete.
“Out of 216 employees, 152 were referred for lifestyle investigation, which is phase 2. During phase 2, employees are to be interviewed to provide explanations.”
Moemi said the affected employees to be interviewed are expected to provide representations and further explanations on discrepancies in unexplained matters flagged during the audit.
However, the lifestyle audit at NHBRC has not been without challenges owing to the institution being without a CEO to approve the appointment of the service provider between January 2025 and mid-March.
The CEO was suspended following the ongoing investigation into the George building collapse.
“The project, therefore, could not continue. A service provider was appointed, and work has commenced,” Moemi said.
He also said the unions had raised concerns about the lifestyle audit process and the fact that they were not consulted.
Deputy Minister Thandi Mahambehlala blamed the lack of consultation with the unions on oversight, but they ensured they did the right thing to avoid having an egg in the face.
Moemi said the NHBRC has since engaged the unions and addressed their concerns.
“The lifestyle investigation is expected to be completed by the service provider by June 2025 if no further challenges are experienced. The report will be presented at NHBRC governance structures during the July 2025 meeting for approval,” he said, adding that after approval by the NHBC council on July 30, the report will be sent to the department.
Moemi anticipated that the report could be shared with Parliament in August or September.
He could not say what the cost of the lifestyle audit was, nor could he name the service provider.
“We can ask the NHBRC to share how much the project is costing, and then we can revert.”
Mahambehlala said the NHBRC had a panel of forensic investigators and service providers from which the service provider was appointed.
“We don’t get involved in the processes of appointment of service providers for the entities,” she said.
Cape Argus