THE Special Investigating Unit (SIU) has begun to investigate an estimated R3bn fraud perpetrated by “unscrupulous” housing developers and contractors against the state over a 10-year period between 1994 and 2004.
The sum of R3bn was identified as unaccounted for by former auditor-general Shauket Fakie, but housing director-general Itumeleng Kotsoane said the amount had been reduced somewhat.
The national treasury has allocated R10m for the SIU investigation.
President Thabo Mbeki issued a proclamation authorising the SIU investigation about three weeks ago, following which the housing department entered a service-level agreement with the SIU, Kotsoane said at a media briefing after the housing budget debate in Parliament on Friday.
He said the fraud arose because after 1994 the government did not have adequate policies to regulate and manage the disbursement of subsidy payments to provinces.
Provincial housing development boards made advance payments to developers for housing projects, who sometimes just disappeared with the money.
The investigation is a further prong to the department’s clampdown on fraud in the sector.
It has also taken action against about 53000 government employees who fraudulently obtained housing subsidies to which they were not entitled.
A 2006 report by Fakie estimated that R323m in subsidies was paid out to about 53000 non-qualifying government employees between 1995 and 2004.
Housing Minister Lindiwe Sisulu said in her budget vote speech that a number of public servants had surrendered their fraudulently obtained houses.
A national anti corruption forum was being set up and a whistle-blowing policy finalised.
Sisulu applauded the fact that banks had extended low-income housing loans worth R32bn of the R42bn they had pledged. An audit had yet to be conducted to determine whether this had benefited the very low-income earners in the R1500 to R3500 a month category.
“What is significant about this is that it has gone ahead without any guarantees from government,” she said.
A new policy would give about 9000 former combatants in the liberation struggle, and ex-servicemen no longer in the South African National Defence Force, preferential access to houses.
Business Day - News Worth Knowing
The sum of R3bn was identified as unaccounted for by former auditor-general Shauket Fakie, but housing director-general Itumeleng Kotsoane said the amount had been reduced somewhat.
The national treasury has allocated R10m for the SIU investigation.
President Thabo Mbeki issued a proclamation authorising the SIU investigation about three weeks ago, following which the housing department entered a service-level agreement with the SIU, Kotsoane said at a media briefing after the housing budget debate in Parliament on Friday.
He said the fraud arose because after 1994 the government did not have adequate policies to regulate and manage the disbursement of subsidy payments to provinces.
Provincial housing development boards made advance payments to developers for housing projects, who sometimes just disappeared with the money.
The investigation is a further prong to the department’s clampdown on fraud in the sector.
It has also taken action against about 53000 government employees who fraudulently obtained housing subsidies to which they were not entitled.
A 2006 report by Fakie estimated that R323m in subsidies was paid out to about 53000 non-qualifying government employees between 1995 and 2004.
Housing Minister Lindiwe Sisulu said in her budget vote speech that a number of public servants had surrendered their fraudulently obtained houses.
A national anti corruption forum was being set up and a whistle-blowing policy finalised.
Sisulu applauded the fact that banks had extended low-income housing loans worth R32bn of the R42bn they had pledged. An audit had yet to be conducted to determine whether this had benefited the very low-income earners in the R1500 to R3500 a month category.
“What is significant about this is that it has gone ahead without any guarantees from government,” she said.
A new policy would give about 9000 former combatants in the liberation struggle, and ex-servicemen no longer in the South African National Defence Force, preferential access to houses.
Business Day - News Worth Knowing
No comments:
Post a Comment