The news that the State's Special Investigatory Unit has arrested nearly 2,000 government officials, most employed in housing delivery, on charges of fraud, corroborates a statement made by himself earlier this year, says Paul Henry, MD of Rawson Developers.
In that statement Henry said that the tender process for low cost housing needs to be changed and the actual work done placed largely back in the hands of private enterprise - with strict controls from an independent body.
Media reports have indicated that initially 7,353 government officials were identified by the Auditor-General for suspected fraud, 930 were arrested and 781 found guilty. R21,7 million was then recovered.
Subsequently the SIU identified another 25,659 civil servants as suspects on subsidy fraud, of whom 634 were arrested and 385 found guilty. This time R15,4 million was recovered.
A further 6,974 municipal council officials were also investigated and 151 eventually found guilty of fraud. 76 cases here are still awaiting trial.
Forty independent contractors involved in housing have been "restricted" from working with the Department again and ±20 await further investigation which could lead to prosecution.
SIU chief, Willie Hofmeyr, has been quoted as saying that with the connivance of officials, the Department was "taken for a ride" on contracts which had an average value of R100 million each.
"It is ironical," said Henry, "that the main reason given some years back for putting State and municipal officials in charge of housing was that it would eliminate corruption. We have to congratulate Minister Sexwale on his firm anti-corruption actions but it is now clear that what happened under the previous system pales into insignificance with what has been going on since the State was given full control."
In that statement Henry said that the tender process for low cost housing needs to be changed and the actual work done placed largely back in the hands of private enterprise - with strict controls from an independent body.
Media reports have indicated that initially 7,353 government officials were identified by the Auditor-General for suspected fraud, 930 were arrested and 781 found guilty. R21,7 million was then recovered.
Subsequently the SIU identified another 25,659 civil servants as suspects on subsidy fraud, of whom 634 were arrested and 385 found guilty. This time R15,4 million was recovered.
A further 6,974 municipal council officials were also investigated and 151 eventually found guilty of fraud. 76 cases here are still awaiting trial.
Forty independent contractors involved in housing have been "restricted" from working with the Department again and ±20 await further investigation which could lead to prosecution.
SIU chief, Willie Hofmeyr, has been quoted as saying that with the connivance of officials, the Department was "taken for a ride" on contracts which had an average value of R100 million each.
"It is ironical," said Henry, "that the main reason given some years back for putting State and municipal officials in charge of housing was that it would eliminate corruption. We have to congratulate Minister Sexwale on his firm anti-corruption actions but it is now clear that what happened under the previous system pales into insignificance with what has been going on since the State was given full control."
(from IOL)
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