Property News and Insights » Sapoa deeply concerned about the situation at the NHBRC as shown by the report presented to parliament on the George building collapse
The South African Property Owners’ Association (SAPOA) has noted with deep concern the details laid bare by the Minister of Human Settlements, Thembi Simelane, about the regulatory lapses that occurred at the National Home Builders Registration Council (NHBRC), in her presentation to Parliament’s Portfolio Committee on Human Settlements on Friday 4 April 2025.
The Minister noted in her report that various mandatory requirements, overseen by the NHBRC had not been complied with during the approval process for the construction of a residential property development in George, which collapsed on 6 May 2024, killing 34 workers. Specifically, the Minister reported that the requisite financial guarantees were not provided by the developer, and various details pertaining to the project, such as detailed drawings and structural engineer drawings were never obtained. The Minister admitted that: “[t]he contractor cut corners. Our system enabled him to cut corners by not following our standard operating procedures and even approving without the fulfilment of all the necessary attachments that needed to be done.”
Mr Neil Gopal, CEO of SAPOA said that he was alarmed at the admission that NHBRC failed to carry out their mandate properly. He noted that, what seems especially egregious, is the fact that the contractor was allowed to proceed with a development in the absence of the requisite guarantees being put in place. He stated further that SAPOA has had difficulties in engaging with the NHBRC over the years.
Following concerns raised by SAPOA members regarding these construction guarantees, the prohibitive costs, and the difficulty of obtaining refunds from the NHBRC after expiry of the guarantee period, SAPOA, as far back as May 2019, engaged the NHBRC on these aspects, at which time SAPOA was advised that a technical committee of the NHBRC would consider SAPOA’s submissions.
During April 2023, SAPOA took up the matter again with the NHBRC, as no further progress was being made. Since then, despite escalating the matter to the now suspended CEO of the NHBRC, and thereafter to the previous Minister of Human Settlements, SAPOA has still not received any meaningful feedback on the subject.
Gopal noted that developers are required to pay a guarantee amount for each property development into a fund established in terms of the Housing Consumers Protection Act, 95 of 1998, administered by the NHBRC, for a period of five years after completion of construction, being the guarantee period. Developers are struggling to then obtain a refund of these guarantee amounts, which run into millions of rands. It now seems as if unscrupulous developers are simply ignoring these requirements, thereby placing consumers at risk.
SAPOA has made various suggestions as to how these guarantees may be better regulated, but, up to now, its requests have been ignored.
SAPOA therefore calls on the leadership of the NHBRC and the Minister to take note of the report tabled in Parliament, and to use this as an opportunity to not only improve the NHBRC, but also to reconsider the present system regarding these guarantees.