Minister of Human Settlements calls for greater efficiency in CSOS dispute resolution processes

Whilst it is encouraging to see the progress made in the implementation of the Community Schemes Ombud Service’s (CSOS) mandate as a regulator, the entity must finalise the registration of the complete universe of community schemes in the country; be more efficient in handling and resolving dispute cases; and improve responsiveness to stakeholders.

This is according to the Department of Human Settlements (DHS) Minister Thembi Simelane, who delivered her remarks at the Strategic Planning Session of the entity held at the Irene Country Lodge in Centurion on Monday.

The Minister outlined her expectations and an overview of the entity’s performance and strategic direction.

The schedule 3A public entity that reports to the Minister of Human Settlements to regulate the conduct of parties within community schemes and to ensure their good governance, achieved an 82% resolution rate for the 32 981 disputes received during the period and fell short of its five-year target of 85% dispute resolution. 

“This is a concern, as dispute resolution is the core business of the entity. This shortfall highlights the need for process refinement and capacity enhancement. The Department is aware that the entity has appointed part-time adjudicators to resolve the backlog of cases. However, the backlog has not yet been eliminated,” Simelane says. 

Notably, she says the performance of the entity has gradually improved over the past three years, as measured against the Annual Performance Plan results. She adds that the CSOS attained 71% in the 2022/23 financial year, 83% in the 2023/24 financial year and 86% in the 2024/25 financial year.

“It is pleasing to note that the entity’s audit outcome improved from a qualified audit outcome in the 2023/24 financial year to an unqualified audit with material findings in the 2024/25 financial year. The entity must now aim for an unqualified audit outcome with no material findings."

In line with the guidelines from DPME’s Revised Framework on Strategic Plans and Annual Performance Plans, Simelane says the CSOS Corporate Plans must include a summary of key risks (Strategic Risks), which may affect achievement of the identified outcomes and describe measures which will be taken to mitigate identified strategic risks.

She says it is important for the CSOS to integrate strategic risk management into the corporate plans. “Linking risks to the corporate plans allows Executive Management, the Board, and the National Department to monitor both performance and risk exposure in an integrated manner. Strategic risk integration allows early identification of potential risks to the CSOS’s ability to deliver on performance outcomes.” 

The minister also calls on this entity to continue to leverage the good successes of CSOS’s digitalisation efforts, through the CSOS Connect Platform, to improve the overall customer experience and to deliver the commitments in its Service Charter.

According to the 2020-2025 Strategic Plan End Term Report of the CSOS released recently, the increasing significance of well-governed, empowered, and inclusive community schemes is highlighted by factors such as urbanisation, income inequality, and changes in the make-up of households.

“In order to ensure that community schemes are administered transparently, that disputes are settled fairly, and that community needs, whether they be financial, cultural, or infrastructure-related, are successfully met, the implementation of the CSOS Act held significance and relevance in the 2020-25 Strategic Planning period.”

The report noted that the demand for formal housing, which is mostly met by community schemes, rises as a result of the urban inflow.

“The greater the growth in the establishment of community schemes as urbanisation increases in order to accommodate expanding populations, the greater the need for well-managed community schemes.

"This has increased the need for the effective regulation of community schemes in the country."

The affordability of housing in community schemes was said to be directly impacted by economic pressures, especially in terms of the capacity to pay levies and maintain shared infrastructure.

Financial hardships raised the possibility that levies in community schemes would not be paid, thereby affecting the payment of CSOS levies over to the CSOS, which is a critical source of revenue used by the CSOS to execute the mandate of the Entity.

“When it comes to protecting financially hamstrung residents from unfair treatment while maintaining the financial viability of community schemes, the implementation of the CSOS Act played a critical role in mediating financial disputes.” 

According to CSOS, areas with a high concentration of community schemes necessitate strong governance frameworks.

“The implementation of the CSOS Act was essential to making sure that community schemes are properly governed and that conflicts are resolved, especially in crowded urban areas where governance can become more complicated.

"The presence of socio-economic diversity in community schemes, where residents may have varying cultural or economic backgrounds, posed governance challenges.

"In these situations, the implementation of the CSOS Act was crucial because it offered legal frameworks for resolving conflicts and ensured that all residents, regardless of background, had an equal voice in the administration of their community schemes.” 

During her address on Monday, Simelane told the entity that the implementation of its mandate during the 2024/25 financial year saw the protection of community schemes’ rights as well as improved governance in community schemes, which has led to advances in the harmonious living in these communities.

Independent Media Property