MEDIA STATEMENT

TO: NEWS EDITORS

FROM: NATIONAL DEPARTMENT OF HOUSING

DATE:  27 JUNE 2006

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HOUSING MINISTER WELCOMES HER DIRECTOR GENERAL’S SUBMISSION TO THE AUDITOR GENERAL

The Minister of Housing, Lindiwe Sisulu today welcomed the submission by her department’s Director General on the concerns raised by the Standing Committee on Public Accounts (SCOPA) to the Auditor General, Shauket Fakie.

Sisulu had requested her director general Mr Itumeleng Kotsoane to submit to the auditor general steps that the department had taken in dealing with issues raised by SCOPA regarding a report published by the auditor general late last year.

‘As I had indicated earlier the director general and his deputy had the information that the committee looked for and should have been able to address the committee’s concerns. However I am satisfied that this mistake has been corrected and the director general has submitted a detailed report explaining all steps taken by the department in addressing these concerns raised by the Auditor General’, said Sisulu.

The report submitted to the Auditor General explains in detail how the department is continuing to respond to issues raised by the auditor general such as weaknesses in the housing subsidy system where even people who do not qualify for houses end up receiving government subsidized houses.

The report also explains that the department has now set up an investigation unit within the department to investigate fraud matters that end up compromising housing delivery.

 In ensuring that only people who qualify for government subsidized houses get them, the department will partner with the department of Home Affairs to check the status of applicants, whether there are South African citizens or not and also with the South African Revenue Services to check among other things how much a person is earning.

‘Through these measures we are hoping not only to address concerns raised by the auditor general and SCOPA but also to ensure that we protect our people from these criminals who steal from the poor’, said Sisulu.

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Chief Director: Communication Services

Housing Department

Tel: +27 12 421 1606

Cell: +27 (0) 83 634 5199

Fax: +27 (0) 86 615 0226