The Minister of Human Settlements, Thembi Simelane, announced the suspension of five officials from the National Home Builders Regulatory Council (NHBRC) pending an investigation by the South African Police and the construction company, Neo Victoria Development. No arrests have been made yet following the George Building Collapse, which resulted in 34 fatalities and 28 injuries.
She said the new Housing Consumer Protection Act, passed by President Cyril Ramaphosa in January 2025, introduced significant changes to the legislative framework of South Africa's home building industry and that it establishes enforcement tools and prescribes appropriate penalties or sanctions to deter non-compliance by homebuilders.
She warned that builders found to be non-compliant or in breach could face a fine of up to R1.5 million or ten years imprisonment or even face being black-listed.
The Minister told the media that only the South African police were in the domain to criminally charge those mentioned in the report and confirmed that the officials together with the company, Neo Victoria Development, were handed over to the police for a criminal investigation but that at present there was no one arrested.
“We have a number of colleagues in the NHBRC, employees who were responsible for some of the steps which were not adhered to, we have already been placed on suspension including the CEO being placed on suspension.
“Justice is taking place, yes we may not have a person arrested, we did not only refer for criminal investigation the company in question, we are also doing it internally with our officials."
She further stated: The outcome of the investigation has also made recommendations that implicated officials be held accountable for their actions. The charges that will be levelled against them include dereliction of duty, misconduct, negligence, dishonesty, and misrepresentation in official inspection reports. We will continue to monitor that this is done by following due process."
The investigation revealed systemic failures, non-compliance with regulatory standards, and mismanagement by both the NHBRC and project personnel. These failures included irregular status upliftment, late enrollment, inspection lapses, material quality issues, and safety violations.
She also further revealed that the George Municipality had approved the plans of the building although it was already under construction.
The report recommended that the NHBRC improve its processes to ensure enhanced quality assurance, transparency, and enforcement efficiency. It also recommended that implicated officials be held accountable for their actions.
The Minister emphasizes that the law only works when it is enforced and calls on all stakeholders in the built environment to cooperate in enforcing the new Act.
Cape Argus