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
"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
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
- 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
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