A corruption crackdown by the Special Investigating Unit (SIU) and the Human Settlements Department has led to the arrest of nearly 2,000 government officials and the recovery of millions of rands, while the focus will now turn to 20 "dodgy" contractors who won tenders worth R2 billion.
The investigation, one of the biggest the unit has undertaken in recent years, was announced by Human Settlements Minister Tokyo Sexwale in Pretoria yesterday.
It was also announced that the National Home Builders' Registration Council, the country's consumer watchdog body for the home building industry, was being investigated.
Both Sexwale and SIU head Willie Hofmeyr said corruption and fraud in provincial governments and municipalities was "endemic", with corrupt officials abusing the housing subsidy.
Sexwale said that of 7 353 government officials identified by the auditor-general for suspected subsidy fraud, 930 had been arrested, 761 were found guilty and R21.7 million was recovered.
He said the SIU identified an additional 25,689 civil servants suspected of subsidy fraud, of whom 634 were arrested, 385 found guilty and R15.4m was recovered.
At municipal level, the auditor-general had ordered that 6 974 council officials be investigated, of whom 346 were arrested, 151 found guilty and R7m was recovered. Of these, 76 cases were still pending, the department's director-general, Thabane Zulu, said.
In total, 1 910 crooked officials had been arrested for unlawfully receiving housing subsidies, while 1,297 were successfully prosecuted.
Zulu said disciplinary proceedings against the officials were under way and that more arrests were expected in the next few weeks in connection with several syndicates after three arrests were made in KwaZulu-Natal.
These involved an attorney, who had been charged with 142 counts of fraud, while a contractor and an engineer were facing two criminal charges for defrauding the KwaZulu-Natal Human Settlements Department of R10m, said Zulu.
He said 40 contractors would be restricted from doing business with the government.
Zulu said political office- bearers were also involved.
Regarding the unit's investigation of 20 contractors, Hofmeyr said the R20 million it received from the department would be used to employ 50 investigators, lawyers and data analysts.
Hofmeyr said in many cases the government had "been taken for a ride" by contractors with the collusion of public servants. "The average contract we are talking about here is R100m per contract so we |are not talking about small amounts… fairly large companies are involved."
Hofmeyr believed that most contractors being investigated would face criminal charges, hence "a very thorough investigation is required".
Sexwale said: "We are very determined and steadfast in our campaign to fight corruption, so the crackdown does not cease and our resolve does not change. I wished that what we are going to present would be the end of the story, but in our country corruption is so endemic.
"It's spreading so much that it disturbs one to say that this is not the last presentation..."
He said the department and Hofmeyr's unit were working closely with Parliament and the office of the auditor-general to root out corruption. "We want to send a message."
Also of concern was an increase in the number of housing syndicates operating mainly in Gauteng, North West and KwaZulu-Natal, where sophisticated criminal groups sold and rented state-owned houses with the help of government officials.
Sexwale said a lot more "finesse" was needed to investigate the syndicates.
- IOL Property
The investigation, one of the biggest the unit has undertaken in recent years, was announced by Human Settlements Minister Tokyo Sexwale in Pretoria yesterday.
It was also announced that the National Home Builders' Registration Council, the country's consumer watchdog body for the home building industry, was being investigated.
Both Sexwale and SIU head Willie Hofmeyr said corruption and fraud in provincial governments and municipalities was "endemic", with corrupt officials abusing the housing subsidy.
Sexwale said that of 7 353 government officials identified by the auditor-general for suspected subsidy fraud, 930 had been arrested, 761 were found guilty and R21.7 million was recovered.
He said the SIU identified an additional 25,689 civil servants suspected of subsidy fraud, of whom 634 were arrested, 385 found guilty and R15.4m was recovered.
At municipal level, the auditor-general had ordered that 6 974 council officials be investigated, of whom 346 were arrested, 151 found guilty and R7m was recovered. Of these, 76 cases were still pending, the department's director-general, Thabane Zulu, said.
In total, 1 910 crooked officials had been arrested for unlawfully receiving housing subsidies, while 1,297 were successfully prosecuted.
Zulu said disciplinary proceedings against the officials were under way and that more arrests were expected in the next few weeks in connection with several syndicates after three arrests were made in KwaZulu-Natal.
These involved an attorney, who had been charged with 142 counts of fraud, while a contractor and an engineer were facing two criminal charges for defrauding the KwaZulu-Natal Human Settlements Department of R10m, said Zulu.
He said 40 contractors would be restricted from doing business with the government.
Zulu said political office- bearers were also involved.
Regarding the unit's investigation of 20 contractors, Hofmeyr said the R20 million it received from the department would be used to employ 50 investigators, lawyers and data analysts.
Hofmeyr said in many cases the government had "been taken for a ride" by contractors with the collusion of public servants. "The average contract we are talking about here is R100m per contract so we |are not talking about small amounts… fairly large companies are involved."
Hofmeyr believed that most contractors being investigated would face criminal charges, hence "a very thorough investigation is required".
Sexwale said: "We are very determined and steadfast in our campaign to fight corruption, so the crackdown does not cease and our resolve does not change. I wished that what we are going to present would be the end of the story, but in our country corruption is so endemic.
"It's spreading so much that it disturbs one to say that this is not the last presentation..."
He said the department and Hofmeyr's unit were working closely with Parliament and the office of the auditor-general to root out corruption. "We want to send a message."
Also of concern was an increase in the number of housing syndicates operating mainly in Gauteng, North West and KwaZulu-Natal, where sophisticated criminal groups sold and rented state-owned houses with the help of government officials.
Sexwale said a lot more "finesse" was needed to investigate the syndicates.
- IOL Property
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