NHFC Board Accused of Overstepping and Interfering in Daily Operations

Board Members Take Charge of Hiring

Leaders at the National Housing Finance Corp (NHFC) say the board of directors is butting into everyday business. Instead of letting executives do their jobs, board members are reportedly telling staff which companies to hire for important contracts and even sitting in on the meetings where those companies are chosen.

Ignoring Normal Rules

A report showed that board chair Desmond Golding and two other board members, Mthokozisi Xulu and Noluthando Mashologu, joined meetings to evaluate company bids. Normally, executives handle this. One board member was recorded telling an executive to stop worrying about the usual rules: “We don’t want all these obstacles. It’s a board instruction… That’s not complicated.”

Executives Object

NHFC executives argued that companies should be picked from a pre-approved list created through a fair public tender. But the board insisted on naming specific firms, saying a special team of experts was needed quickly. The board’s chosen companies were sent to the company secretary to manage.

CEO Suspended, Executive Letter Never Sent

Eight top executives wrote a complaint letter to the board about this and other issues, but they never sent it. The board has held 12 meetings since August—four more than allowed—and its subcommittees met over 18 times.

Interfering in HR?

The board also got involved in human resources. It reversed the CEO’s suspension of a general manager accused of misconduct. Then, last week, the board suspended the CEO, Azola Mayekiso, accusing her of fraudulently using a corporate credit card for luxury trips and meddling in an investigation. The board says the National Treasury and Public Protector are also looking into the CEO.

Board Chair’s Controversial Past

Board chair Desmond Golding has faced legal troubles before. In 2018, he was charged with corruption related to R28 million paid for a jazz festival that never happened. He was head of a KwaZulu-Natal government department at the time. In 2023, a court acquitted him and others, but prosecutors are appealing the decision.

Board’s Explanation: “We Had To Step In”

Board member Satish Roopa, who chairs the HR committee, defended the board’s actions. He said board members joining bid meetings was not “operational interference” because the contracts were for forensic investigations into alleged wrongdoing by senior staff, including the CEO. He argued the board had a duty to oversee these sensitive hires to protect the organization.

Denying They Picked Companies

Roopa denied board members nominated the 10 invited companies. He said the chief financial officer asked board members to suggest firms with needed expertise, and only about three of the 10 names came from board members. The rest, he claimed, came from the supply chain management department.

On the Extra Meetings and HR Decisions

Roopa said the extra meetings were necessary because the board faced many serious issues. He also defended lifting the general manager’s suspension, calling the CEO’s original decision “procedurally flawed” and made without proper authority.

Conclusion: A Clash of Power at NHFC

The NHFC board and its executives are locked in a bitter dispute over who controls the organization. The board says it is acting legally to oversee investigations into serious allegations. Executives claim the board is breaking rules by micromanaging hiring and HR. With the CEO suspended, the board chair facing a past corruption case, and multiple investigations underway, the future of the agency that funds low-cost housing is mired in conflict and uncertainty.