Home building industry regulatory body, National Home Builders Registration Council’s (NHBRC’s) disciplinary committee has fined eThekwini municipality R1.2-million for failing to enrol 60 subsidy houses, which were under construction at Inanda and formed part of the Umqhawe project.
The NHBRC says the municipality, which was a developer in this case, started construction of 60 residential units without enrolling the homes with the council.
This put it in contravention of the Housing Consumers Protection Measures Act 95 of 1998, which requires that all new homes be enrolled with the NHBRC 15 days prior to construction.
Home enrolment insures consumers against poor building practises and permits the NHBRC to conduct building inspections at key stages of construction.
The municipality pleaded guilty to all 60 charges proffered by the prosecution and was accordingly found guilty as charged by the disciplinary committee.
Further, the NHBRC’s disciplinary committee also imposed, for all counts of misconduct a R25 000 a unit fine, of which R5 000 per count is suspended on condition that the developer is not found guilty of a similar transgression within the next two years.
In addition, the committee imposed that the developer complies with the late enrolment requirements within a period of six months from date of receipt of the written ruling.
In addition, the committee imposed a sum of R300 000, which is suspended subject to the conditions as aforementioned.
Should the developer re-transgress and be convicted of a similar transgression by the disciplinary committee within the period of suspension (two years) and/or fail to late enrol the units in question, the suspended portion of the fine will come into operation.
The eThekwini municipality has paid the R1.2-million, which the NHBRC says is a record single payment to date and a first from an organ of State operating in the subsidy sector.
NHBRC acting CEO Songezo Booi says the council is happy with the sanction imposed as it shows that such contraventions will be dealt with harshly to deter similar conduct in future.
“[I] hope that, going forward, the municipality will be proactive in ensuring compliance and not wait for enforcement and disciplinary sanctions by the NHBRC.”