Minister Simelane under fire: R34bn housing budget defended amid fraud probe and political storm

Key topics:DA confirms active fraud investigation against Minister SimelaneSimelane pledges 237,000 new homes in five yearsOpposition parties slam budget, question minister’s credibility.Sign up for your early morning brew of the BizNews Insider to keep you up to speed with the content that matters. The newsletter will land in your inbox at 5:30am weekdays. Register here.Support South Africa’s bastion of independent journalism, offering balanced insights on investments, business, and the political economy, by joining BizNews Premium. Register here.If you prefer WhatsApp for updates, sign up to the BizNews channel here.The auditorium doors will open for BNIC#2 on 10 September 2025 in Hermanus. For more information and tickets, click here..By Kerry Lanaghan.Human Settlements Minister Thembi Simelane faces mounting political and legal pressure as she defends her department’s proposed R34 billion housing budget. At the same time, the Democratic Alliance (DA) confirms that a criminal investigation into her alleged involvement in fraud and corruption is now officially underway.The DA revealed this week that the South African Police Service (SAPS) has assigned an investigating officer to probe charges it laid against Simelane. The party alleges that she participated in a fraudulent billing scheme while employed by the consulting firm Vitrovian, which Eskom contracted to manage protest activity while constructing the Kusile power station.According to the DA, Simelane’s signature appears on an inflated invoice of over R700,000, billed to Eskom for work allegedly done by fictitious employees. “Minister Simelane is yet another ANC Minister in the National Executive under investigation for a serious crime,” the DA said in a statement, reiterating calls for President Cyril Ramaphosa to remove her from office.Simelane also faces unresolved allegations linked to the looting of VBS Bank during her tenure as Executive Mayor of Polokwane.Despite these clouds, Simelane tabled her 2025/26 budget vote in Parliament on Tuesday. In a report made by News24, Simelane defended the R34 billion allocation as a decisive intervention aimed at reversing the housing backlog and addressing South Africa’s persistent spatial inequalities.She promised to construct 237,000 new Breaking New Ground homes and transfer 80,000 title deeds over the next five years. Immediate targets for the current financial year include 4,944 housing units, 32,250 serviced stands, 3,000 social housing units, and 4,282 first-home subsidy units.“This budget is a commitment to the values enshrined in the Freedom Charter,” Simelane told Parliament, referencing the 70th anniversary of the document, which calls for secure housing for all. “We will not displace people to the periphery of our cities in the name of development.”A significant portion of the budget - R30 billion to be precise - is allocated to provinces and metropolitan municipalities. The plan includes upgrading over 4,000 informal settlements, replacing more than 8,000 mud houses in rural areas, and issuing 140,000 subsidies for “missing middle” income earners.Simelane warned, however, that climate-related disasters are outpacing her department’s rebuilding funds. Flood damage in KwaZulu-Natal, Eastern Cape, Free State and Western Cape has far exceeded the R336 million set aside for disaster recovery.Opposition parties were unconvinced. The EFF’s Mbali Dlamini accused the minister of “wrapping empty promises in inflation and false hope.” MK Party MP Thulani Gamede criticised the “real terms” reduction in informal settlement funding, warning of deepening urban inequality. Rise Mzansi attacked the department’s failure to address corruption, calling for protection of housing funds from “internal hyenas.”DA MP Luyolo Mphithi led a blistering attack on Simelane’s credibility. “This minister cannot be trusted with a single Rand of public money,” he said. “She presides over a department collapsing and riddled with corruption.” Simelane’s history of corruption fuels the distrust among opposing political parties. Simelane has dismissed the attacks as politically motivated and reaffirmed her commitment to transparency. Her department has begun mapping all 4,075 informal settlements and will work with the Department of Forestry, Fisheries and the Environment to unblock delays in issuing housing title deeds.She also announced new regulatory efforts after the deadly George building collapse earlier this year. The National Home Builders Registration Council (NHBRC) will introduce stricter grading and training standards for developers and builders.Still, critics remain sceptical. While the budget outlines ambitious targets, it faces a backdrop of underperformance, municipal underspending, and ongoing allegations of fraud at the highest levels. Whether Simelane can maintain political support and public confidence amid the deepening criminal investigation remains to be seen. For now, her housing plan faces fierce resistance not just on the merits of delivery, but on the credibility of the minister behind it.

Minister Simelane under fire: R34bn housing budget defended amid fraud probe and political storm

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