Thursday, May 29, 2008

Department shows dodgy dealings

More than 31 000 potentially corrupt housing transactions, costing the taxpayer millions of rands, have been unearthed in a department whose minister has begged the government for billions more to help house the nation.

Housing Minister Lindiwe Sisulu on Wednesday told the National Assembly during her housing budget vote that the Special Investigating Unit had identified 31 259 "potentially irregular housing subsidy transactions" that had been awarded to government employees nationally.

The Special Investigating Unit had begun prosecuting individuals, with 29 cases already finalised and culprits forced to repay the value of the houses.

About 200 cases would be placed on the court roll in the current financial year.

'Funding for housing delivery is grossly inadequate'
"The total amount of debt we expect to recover is R6 827 036,30," Sisulu said.

Building contractors who failed to fulfil their contractual obligation to the Department of Housing are also to come under scrutiny.

Sisulu said these contractors' non-performance dented the department's reputation as well as causing significant losses.

Preliminary analysis of all contracts submitted by the various provincial housing departments has begun, with 65 housing projects so far earmarked for forensic auditing, which is expected to result in possible legal action.

The African Christian Democratic Party and other opposition parties yesterday expressed their deep concern at the degree of corruption in housing.

'We will be seeking to introduce a once-off injection'
Sisulu meanwhile begged the government for more money, warning that unless this happened, there would be catastrophic consequences.

She said although the Housing Department had housed the equivalent of the combined populations of Swaziland, Namibia and Lesotho over the past four years, there was a growing backlog.

The minister said her department would need far more resources to overcome this growing shortfall, especially against the tide of impatience shown over the past two weeks.

"We have repeatedly pointed out that the funding for housing delivery is grossly inadequate in the face of the backlogs we face," she said.

Sisulu earlier commented that the spectre that hung over the horizon following the turmoil of the past fortnight would forever haunt the country.

Many analysts believe tardy service delivery and the demand for low-cost housing were major causes of the wave of anti-foreigner violence.

Financial research indicates that a funding shortfall of R102-billion would exist by 2012 if the housing budget continues its current growth trajectory of 23,2 percent a year.

"To alleviate our present circumstances through the budget process, we will be seeking to introduce a once-off injection of resources estimated at around R12-billion, and an extraordinary effort, so we can impact on the housing backlog and poverty in the next 12 months and increase housing delivery," Sisulu told MPs.

- The Star


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