Ombud service placed under administration after Minister dissolves board over governance concerns

The Community Schemes Ombud Service (CSOS) has been placed under administration after Minister of Human Settlements Thembi Simelane dissolved its board over governance concerns.

Simelane announced on Wednesday that she had appointed Leshabe Rampedi as administrator following the dissolution of the board on 6 November 2026.

The board was dissolved following what the Ministry of Human Settlements described as a sustained period of "leadership instability, lack of cohesion, dysfunctionality of the Board and serious allegations of mismanagement".

The decision was taken in accordance with Section 28(1) of the Community Schemes Ombud Service Act.

According to the Ministry, Simelane commissioned an independent investigation into the allegations. The resulting report pointed to "numerous governance failures and risks to the financial sustainability of CSOS".

The investigation recommended that Simelane consider dissolving the board in terms of Section 28, read with Section 10, of the CSOS Act.

After considering the report, Simelane wrote to the board on 24 October 2026, outlining the investigation's findings and inviting it to make representations on why it should not be dissolved.

The board submitted its response on 3 November. Simelane said the response "did not adequately address the deficiencies identified in the investigation", leading to her decision to dissolve the board.

Rampedi's appointment is intended to provide leadership, stabilise the organisation and address its governance and operational challenges while a new board is appointed.

His responsibilities include "finalising outstanding investigations, developing a turnaround plan and accelerating the filling of critical vacancies" to strengthen CSOS's ability to fulfil its mandate.

Rampedi has more than 25 years of public-sector experience. He previously served as an accounting officer and head of department in Limpopo's Department of Cooperative Governance, Human Settlements and Traditional Affairs.

He has also been involved in interventions in the human settlements sector in the Eastern Cape and Gauteng, including at the Nelson Mandela Bay and Ekurhuleni metropolitan municipalities.

He currently serves as a board member of the Property Practitioners Regulatory Authority, where he chairs its Finance Committee. His previous private-sector experience includes working for Consol and Standard Bank.

He holds a Bachelor of Commerce in Accounting from the University of the Western Cape and a Master's degree in Development Planning from the University of Limpopo.

Simelane also acknowledged the service of the former board members, noting that several had welcomed the decision and expressed their willingness to assist with a smooth transition and handover.

CSOS is responsible for handling disputes within community schemes, including sectional-title developments and homeowners' associations. Its governance and operational stability are therefore important to residents and property owners who rely on the service to resolve disputes.

Simelane's statement did not provide details of the specific allegations of mismanagement or quantify the financial risks identified in the investigation.