(a)(i) To strengthen the SHRA’s regulatory role and to build a sector that is capable of delivery and management of social housing at the level of scale and form required, the Compliance, Accreditation and Regulation (CAR) Operational Framework was reviewed. Implementation is underway, with the SHRA aiming to increase its internal capacity and reduce the past reliance on consultants. Organisational capacitation of key personnel including resources to provide more in-depth compliance monitoring and a Regulations Manager and to increase in-house capacity when dealing with issues of regulatory enforcement and non-compliance, in line with section 12 provisions contained within the Social Housing Act 16 of 2008 are being implemented.
(a)(ii) Cases of non-compliances which have escalated for enforcement relates to the following institutions:
(b) Irregular expenditure incurred in the past five years pertain to investing in projects that fell outside a restructuring zone, which has since been declared and regularised. The remaining irregular expenditure relates to a single grant recipient (TBGI) amounting to R26.7 million which is being dealt with by implementing the court judgement to recover the funds – a loss cannot be established at this stage.
There have been no funds lost through non-compliance, as most non-compliance has been limited to the submission of documents. Three institutions are about to be taken through regulatory enforcement and forensic investigations are to be conducted. These are Housing Authority of East London (HAEL), Urban Scape and Communicare. The extent of maladministration and if funds have been lost, can only be ascertained when these investigations are concluded.