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R4bn worth of housing projects probed

Oct 01 2012 07:58 Sapa

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Cape Town - The total value of housing contracts being probed by the Special Investigation Unit (SIU) stood at R4bn, President Jacob Zuma said on Sunday.

Replying in writing to a parliamentary question, Zuma gave an update of the status of the SIU's investigations.

In respect of the human settlements department, the president said 59 low cost housing contracts were identified by the SIU for investigation.

"From the aforementioned 59 contracts, the investigations into 42 contracts have been completed and the investigations into 17 contracts are still on-going across seven provinces," said Zuma.

Some of these contracts dated back to as far as 1996.

The investigations started in April 2007 and were originally due for completion by 2010, but the deadlines were extended several times.

The probe into the alleged misappropriated housing subsidies was done in March and a final report was being prepared.

"The estimated date for the conclusion of the remaining investigation is 30 April 2013," said Zuma.

The president said the SIU had already made several "systemic findings" on the 17 contracts which were still being probed.

These include non-compliance with the Housing Act and National Housing Code as well as contraventions of procurement procedures.

Zuma said other findings by the SIU include:

  • Fruitless and wasteful expenditure amounting to R27.9m for certain investigations;
  • Potential losses estimated at over R71m suffered by provincial departments;
  • Potential recoveries amounting to over R100m in respect of certain investigations;
  • Various instances of misconduct by officials, employees or agents of the institutions; and
  • Possible criminal charges against some of the previous and/or current heads of departments.

The intention of the probe was to uncover the mismanagement and misuse of taxpayers money allocated to low cost housing projects since 1994.


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special investigating unit  |  housing
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