INVESTIGATIONS INTO HOUSING FRAUD YIELD RESULTS
GOVERNMENT’S commitment to fight corruption related to the Housing Subsidy System is bearing fruit, with thousands of public servants facing prosecution for corruptly or fraudulently acquiring subsidized houses meant for the poor.
President Thabo Mbeki issued a proclamation authorising the Special Investigations Unit (SIU) to look into this issue on the 25th of April 2007. This was prompted by the findings of the Auditor- General’s report in 2006 that there was possible fraud, corruption and maladministration in the Housing Subsidy System. On the advice of Housing Minister Lindiwe Sisulu, President Mbeki issued Proclamation R7 of 2007 authorising the SIU to start with the investigations.
A total of 31 000 civil servants are currently under investigation by the SIU for possible fraud and corruption relating to how they acquired low cost houses. Of these, 3 800 are already facing prosecution in the country’s courts as investigations into their cases have been finalized.
Housing Director General Itumeleng Kotsoane says the Department would like to emphasize that a lot of this fraudulent activity took place in the late 1990s and early 2000 due to the failure of our systems to detect and verify some of the applicant’s details.
“Working with other agencies of Government, the Department has improved its monitoring and verification systems and is able to detect and prevent fraudulent application by verifying the applicant details with the South African Revenue Services, the Department of Home Affairs, Deeds Office and other institutions of government.
“We continue to work with law enforcement agencies and other institutions of Government and the private sector to prevent fraud, and where fraud is detected it would be dealt with harshly,” says Kotsoane.
The SIU investigations focused on irregular awarding of subsidies to non-qualifying beneficiaries, especially government employees; underperformance by contractors in the delivery of houses or the irregular awarding of such contracts and on a conduct by officials in the administration of the low cost housing scheme and awarding of subsidies or development contracts. Investigations prioritized the issue of public servants and this will be extended to incorporate the other two areas.
The objectives of the investigation included recovering losses suffered by the department as a result of maladministration and corruption; institute or recommend corrective action which includes civil, criminal and disciplinary action; cleansing of the national housing database of disentitled housing subsidy beneficiaries; identifying weaknesses in the Housing Subsidy System including the absence of internal controls and policies; and making recommendations on improving systemic deficiencies through tighter policies and better control.
A total of 443 public servants have since the Proclamation signed an acknowledgement of debt with the SIU totaling R9, 3 million. Nearly R1 million of this amount has been paid back and people are allowed to repay the money over a maximum period of 60 months. If people fail to honour their commitment, their cases are handed to the Department for further action or to the State Attorney.
Gauteng has the highest number of public servants under investigation at 9 235; followed by KwaZulu Natal at 6 755; Eastern Cape at 3 840; North West at 3 027; Limpopo at 2 461; Western Cape at 2 279; Mpumalanga at 1 780; Free State at 1 407; and Northern Cape at 475. The majority of these suspects are people who can be classified as those who are in the high income group ranging from R3 501 a month.
The SIU will on Wednesday and Thursday (22 and 23 April 2008) prosecute a total of 34 public servants in Pietermaritzburg, KwaZulu Natal for fraudulently obtaining government subsidized houses. While another 10 public servants will appear before a magistrate on Friday the 25th of April in Venterstad in the Eastern Cape.
ISSUED BY THE DEPARTMENT OF HOUSING
For more information please contact Xolani Xundu on (012) 421 1339 or 082 885 3378
ENDS