Infrastructure

Question by: 
Hon Khalid Sayed
Answered by: 
Hon Tertuis Simmers
Question Number: 
2
Question Body: 

Interpellation 2

Whether a commission of enquiry into Communicare was ever established?

Answer Body: 

No formal commission of enquiry into Communicare was established.  During July 2019, the Deputy Minister of the National Department of Social Development set up an Interdepartmental Technical Task Team to investigate the affairs and origin of Communicare. The task team included the Social Housing Regulatory Authority (SHRA) as well as the National Department of Human Settlements. The City of Cape Town, the Provincial Department of Human Settlements, and the Provincial Rental Housing Tribunal (RHT) were consulted as part of this process.  The Companies and Intellectual Property Commission (CIPC), also participated in this investigative process.

ADDITIONAL INPUT

The SHRA reported that the overall management of the Drommedaris and Bothasig Social Housing Projects, by Communicare, is satisfactory. These two projects fall within the ambit of the Social Housing Act and Regulations. The balance of the Communicare’s rental  portfolio falls outside the mandate of the SHRA, as these are deemed to be ‘private rental units’ and do not fall under the ambit of the Social Housing Act and Regulations.

In terms of compliance, Communicare meets SHRA’s regulatory requirements, cooperates fully with SHRA’s audits, and is currently in good standing with the Authority. Furthermore, Communicare holds a Fully Accredited Certification issued by the SHRA, which is subject to review every five years.

Between 2018 and 2020, the Rental Tribunal received 775 cases from Communicare tenants residing at various areas owned by Communicare (ie Ruyterwacht, Thornton, Brooklyn, Bothasig Gardens, Rondebosch, Plumstead, etc) mainly alleging an exorbitant increase in rental by Communicare. 

These matters were finalised by the Tribunal in 2021 via:

Facilitation (not proceeded with)

Mediation (settlement agreements)

Hearing (ruling issued)

Date: 
Thursday, June 26, 2025
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