1. The Vision of Human Settlements is to ensure and carry out the constitutional mandate which guarantees houses for all.
Everyone has the right to have access to adequate housing.
The state must take reasonable legislative and other measures, within its available resources, to achieve the progressive realisation of this right.
No one may be evicted from their home, or have their home demolished, without an order of court made after considering all the relevant circumstances. No legislation may permit arbitrary evictions.
2. Most importantly for us it is to drive the deracilisation of residential areas in South Africa
No one may be deprived of property except in terms of law of general application, and no law may permit arbitrary deprivation of property.
3 . In this light the work of Human Settlements is cut out in four areas
- Provision of housing subsidies to the poorest of the poor
- Provide GAP market with guarantees so that they are credit worthy to the Banks
- Regulate the banking industry to make sure landing practices are fair, and
- Regulation of the entire sector
- Definition of human settlements beyond housing – President
- Cabinet decision that all legislation associated with human settlements should be brought under the department
- The Real Estate Agency Act that was with the Department of Trade and Industry (the dti) is now with Human Settlements
- This sector is now regulated in this ministry
About the Estate Agency Affairs
Cabinet initiated a process of transferring the Estate Agency Affairs from the Department of Trade and Industry to Human Settlements.
This followed the decision to have all Human Settlements related legislation and laws to be located within the department.
In the 2012 Budget Speech, we announced to the nation that the Estate Agency Affairs has been proclaimed to be part of Human Settlements.
The Estate Agency Affairs Board (EAAB) was, with effect from 17 May 2012, operationally relocated from the Department of Trade and Industry to the Department of Human Settlements which now constitutes its Executive Authority. A handover meeting between the Department of Human Settlement and the DTI took place on 29 May 2012.
The purpose of the Estate Agency Affairs Act, of 1976 is:
- to provide for the establishment of an Estate Agency Affairs Board and Estate Agents Fidelity Fund
- to provide for the control of certain activities of estate agents in the public interest.
This Real Estate Agency Industry is critical for the Deracialisation and transformation of human settlements landscape in the country. It has a huge potential to become a catalyst for economic growth.
The EAAB has recently received a lot of publicity for all the wrong reasons.
These include;
- the Wendy Mechanik saga,
- the parting of ways with the former CEO - Nomonde Mapetla, with an acrimonious settlement
- Auction Alliance
- suspensios of the Company Secretary
- resignation of the Chairperson - Ina Wilken
- reinstatement of those suspended within few days in between.
Many of you, gathering here this morning, have put so much effort into the sector, made crucial investments, only to see those inputs undone by ongoing shenanigans. It has become very clear that the industry has lost faith in the EAAB.
I’m still planning to have a summit with you in September where detailed discussions about the sector will happen.
Prior to this I have been planning to meet with my board but things started falling apart.
I have decided to step in quicker than I had thought.
Your house is in disarray and that is why I called you. We have to crack the whip.
I’ll need everyone’s cooperation about the knowns and the unknowns. Spring cleaning the house is what has to happen now.
For me there is no compromise of governance
I asked the chairperson to ask whether her resignation had anything to do with the fire coming out of the roof.
Out of the board of 15 only three are remaining.
To facilitate a proper conversation with yourselves this morning, allow me to pose a few questions to help all of us navigate these difficult issues:
- If the EAAB cannot regulate its own internal matters, can it regulate this critical industry?
- Is there transparency in the operation of the institution and related transactions?
- Are there clear enforcements and compliance measures to create reliability and credibility in the business of the institution in line with King 3?
- What are the underlying problems for consumer funds to be embezzled and continue to be open to ongoing abuse?
- What is the role of members and affiliates to help stabilise the sector?
Road Map to bring EAAB on track
- I have decided to put the EAAB under administration.
- The department will commence with due diligence to understand what we are inheriting.
- I am declaring a full investigation to be conducted by the Special Investigating Unit (SIU).
- Governance issues - Board appointment, and the CEO, will be the next steps to follow.
- Legislative review: to bring the institution in line with Human Settlements imperative
