NHFC Sets the Record Straight: Says Board Is Lawful and Effective

In a right of reply for the National Housing Finance Corporation (NHFC), Satish Roopa writes: A recent article published on 19 November 2025 has misled the public about the National Housing Finance Corporation (NHFC), its Board, and its leadership. The piece, titled “Public Entity at Risk: NHFC Board accused of mismanagement and pending legal issues,” contains factual inaccuracies, unfounded insinuations, and reckless allegations that undermine a critical public institution tasked with advancing affordable housing finance for millions of South Africans.

Contrary to the claims published, the NHFC Board appointed on 1 August 2025 is lawfully constituted, properly appointed, and has already taken decisive steps to strengthen governance, restore institutional integrity, and accelerate consequence management. The IOL article not only misrepresented these facts, but it was also published without the NHFC being approached for comment.  Had the NHFC been afforded an opportunity to respond, the following would have come to light:

The Board Has Taken Decisive, Systematic Action to Clean Up Historical Irregularities

The article disregards the extensive, measurable work undertaken by the Board since its appointment on 1 August 2025.

Far from being “improper” or “unfit,” the Board has been the first leadership cohort in years to confront and correct systemic failures that were entrenched long before its tenure. In just over three months, the Board has executed a coordinated governance turnaround programme that includes:

• Immediate stabilisation of the institution, including the precautionary suspension of the CEO to protect the integrity of ongoing investigations.
• Commissioning of independent forensic investigations into historic financial misconduct, irregular expenditure, and procurement failures highlighted by internal audits, Auditor-General findings and National Treasury reviews.
• Full adoption and implementation of the forensic recommendations, with consequence-management processes already underway for implicated individuals.
• Strengthening of supply-chain governance, including the cleanup of irregular supplier appointments, stricter vetting protocols, and the introduction of transparent procurement controls to prevent past abuses.
• Reconstitution of critical committees such as Audit, Risk, and Human Capital to ensure compliance, oversight, and proper segregation of duties.
• Tightening of internal controls, with new reporting lines, performance frameworks, and accountability mechanisms aligned to PFMA and King IV principles.
• Engagement with the Public Protector, who is investigating certain matters referred to that office.
• Restoring governance credibility, including clearing legacy audit findings, disciplining non-compliance, and resetting the internal culture towards compliance and transparency.
• Engaging with the SIU in relation to lifestyle audits for all senior staff members.
• Engagement with the National Treasury, the Auditor-General, and the Department of Human Settlements, ensuring that the NHFC is aligned with national expectations for clean governance and the future establishment of the Human Settlements Development Bank.

This level of decisive action is unprecedented at the NHFC. The Board has not only inherited historical failures, but it is the first Board to actively confront them, correct them, and restore public confidence through transparent, ethical leadership.

The claim that the Board is “mired in mismanagement” therefore ignores demonstrable progress and presents the exact opposite of the truth.

Misleading Claims About the Chairperson’s Legal Status

Equally concerning is the article’s suggestion that criminal proceedings against NHFC Chairperson Dr Desmond Golding are “pending” or have been “revived”. These claims are false, defamatory and not supported by any factual record.

The legal position is unequivocal:

• On 30 May 2023, the KwaZulu-Natal High Court discharged Dr Golding in terms of section 174 of the Criminal Procedure Act, meaning the State failed to present evidence capable of sustaining a conviction.
• The application for leave to appeal was dismissed by the Supreme Court with costs on the grounds that there is no reasonable prospect of success in an appeal and there is no other compelling reason why an appeal should be heard. 
• No pending proceedings or appeals exist currently.
• The Chairperson has instituted legal action against the State for wrongful arrest arising from the criminal charges

Any reporting that suggests otherwise is misleading and damaging not only to the chairperson but to board members, and it is unacceptable. It does not only taint the images of the individuals, but given the nature of the work and involvement in multiple boards and structures, unfounded allegations have a wider ripple effect.

Protecting Public Trust in a Critical Development Finance Institution

The NHFC plays a pivotal role in South Africa’s housing landscape, supporting access to affordable finance for low- and middle-income households while contributing to delivery of the Human Settlements Development Bank. This mandate demands ethical leadership, strong governance and public confidence.

The article undermines all three by:

• Mischaracterising historical irregularities as current failures;
• Suggesting unlawfulness where none exists;
• Ignoring the Board’s ongoing corrective work;
• Publishing without offering the NHFC a right of reply.

Such reporting does not serve the public interest, as it is one-sided, and the NHFC Board would have been available to offer its side of the story.

The NHFC’s Position Going Forward

The NHFC remains committed to transparency, good governance, and the responsible use of public funds. It will continue its efforts to correct inherited governance problems, strengthen oversight, and fulfil its mandate to expand affordable housing finance.

The NHFC Board remains focused, lawfully constituted, and resolute in restoring confidence in one of the country’s most important development finance institutions.

*Roopa is an NHFC board member and chair of Human Capital Committee