A sweeping Public Protector investigation has uncovered severe allegations at the highest levels of the National Housing Finance Corporation (NHFC), threatening the integrity of the public finance institution.
The report, finalised on December 1, paints a picture of collapsed governance under the weight of irregular appointments, flouted procurement, and executive bullying.
The R20-million figure encapsulates the two core financial scandals under investigation: the exorbitant personal remuneration of CEO Azola Mayekiso and the costly, irregular property lease she authorised.
It combines the more than R5-million in compensation and a 125% bonus she received — deemed excessive against guidelines — with the over R15-million committed for a three-year, single-source lease at 90 Grayston Drive in Sandton, Johannesburg.
Irregular appointment of CEO
The Public Protector’s Investigation Team found that “the Board appointed Ms Azola Mayekiso as the CEO after being unemployed for three (03) years and lacking experience in the public sector.”
This appointment may have violated governance procedures and the Public Finance Management Act (PFMA).
Her remuneration package immediately raised red flags. The report states: “Her compensation exceeded five million rand (R5-million) and a bonus of 125%. While other executives received an 85% bonus,” which appears to contravene official guidelines.
The CEO’s conduct is depicted as both secretive and domineering. She “failed to disclose her involvement with 28 companies”. And she is accused of directing “all consulting assignments to the Development Bank of Southern Africa (DBSA), attempting to secure an R1-billion facility from them.
“Internally, she insisted that all Supply Chain Management (SCM) processes must be discussed with her. And she interfered in every tender process.”
This conduct cultivated a culture of fear. “She has abused her authority and fostered a hostile work environment for employees. This resulted in grievances being filed with Human Resources,” the document states.
Unionised as defence against bullying
The toxicity became so pervasive that “the staff decided to join the National Education, Health and Allied Workers’ Union (Nehawu) to advocate for their rights. This as they are experiencing bullying, coercion, and mistreatment from both the board and the CEO.”
A second major pillar involves the irregular awarding of a tender for office space at 90 Grayston Drive. The report alleges Mayekiso unilaterally decided to relocate and “engaged Redefine through a single-source procurement process for a three-year term. This amounted to over R15-million (R 15,000,000).” This blatantly ignores competitive tender processes.
The financial imprudence is highlighted by the note that “the organisation is experiencing financial difficulties. And it is unable to allocate such substantial funds for high rental costs in Sandton.”
The Public Protector’s team has been met with inadequate cooperation. The team established that the documentation and information submitted did not sufficiently address the significant issues highlighted. It has demanded a flood of withheld documentation. This is including a “detailed breakdown of the costs” for trips.
Specifically, the team has asked, “What factors influenced the decision to move to 90 Grayston? Was a needs analysis or space utilisation study conducted?” And it demanded evidence of a “market comparison and/or cost-benefit analysis to substantiate the lease terms”.
Lack of compliant documentation
The report notes that “pending further evidence and analysis, the investigation team has not yet reached a conclusion.”
However, the severity of the allegations and the lack of compliant documentation point to a profound governance crisis.
The conclusion states the team has “identified significant allegations of maladministration, irregular appointments, abuse of power, and procurement irregularities at NHFC.”
Final findings hinge on the entity providing the comprehensive evidence requested.
