In a media statement issued on 4 July 2012, we indicated that the Department of Human Settlements appointed an investigation team to conduct an internal investigation. Following the commencement of the investigation, six senior officials have been put on precautionary suspension.

The scope of investigation covers:

• Manipulation of the individual subsidy system
• Allocation lists of contractors
• Advance payment and
• Poor or non-inspection by the technical staff

Disciplinary processes have already started with regard to these officials.

In a later statement it was pointed out that this investigation may also affect officials in other or lower employment levels.

It is therefore important to announce that further three senior administration officers received letters of suspension relating to allegations of payment irregularities to contractors for incomplete projects.

The principle of "innocent until proven guilty” applies in all these cases.

The SIU presented the provisional outcomes of an investigation that covers the 1994/05 to 2008/09 financial years, to the department. It was an investigation initiated by the National Department of Human Settlements years back covering the whole nine provinces.

This requires certain actions to be taken by the department. Once considered, remedial steps will be taken.

The SIU has also embarked on a new investigation regarding payments made to certain material suppliers.

Issued by: Ntai Mokhitli

Media and Parliamentary Liaison Officer

Office of the MEC Cooperative Governance, Traditional Affairs and Human Settlements: Free State

Tel: 051- 405 5732

Cell: 082883 7317