R4bn worth of housing projects probed

2012-10-01 07:58

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.

*Follow Fin24 on TwitterFacebookGoogle+ and Pinterest.


  • larry.piggott1 - 2012-10-01 08:04

    About time, but, will anything come off it?

      demi.davidson.18 - 2012-10-01 08:40

      @larry.piggott1: don't hold your breath, this idiot is merely looking for votes!

      squeegee.pilot - 2012-10-01 09:07

      May as well probe every cent every spent by the ANC. Bunch of crooks.

      patson.nedzamba - 2012-10-01 09:31

      Nothing is ever done to bring them to book or to recover our wasted money. That's the name of the game anyway

  • owen.walker.7165 - 2012-10-01 08:13

    Has anyone investigated the investigators - perhaps they ae being paid by the hour hence the long time taken to do the job.

  • roger.hess.14 - 2012-10-01 08:30

    They should add "Selling of the houses by the authorities at that time (i.e.: not the DA)" to the investigation. I had to assist my domestic helper with the money to get hers in 2001 as there was no other way to move her out of the shack she had her family in, only to find out later these were not supposed to be sold.

  • PrettyUsefulArt - 2012-10-01 08:32

    Words like "possible criminal charges" and "potential recovery" convince me that this is merely more electioneering by our unimpressive (pardon the understatement) Prez.

  • appietrader - 2012-10-01 08:36

    Nothing will come of it. Those fat cats are part of the anc plundering family. One or two expendable cadres will be thowing to the wolfs the rest will enjoy the fruits of their theft!

  • douglas.reid.921 - 2012-10-01 08:36

    What about the other R 675 billion known and reported lost to corruption??? R 4 billion isn't even 1% of the problem.

  • bob.small.7547 - 2012-10-01 08:37

    Why is there always a probe...? Why can't it just be conducted properly in the first place...! Total incompetence all round!

  • demi.davidson.18 - 2012-10-01 08:37

    And he's making this comment only now? Does he think all the people of SA are as stupid as he is? Nothing will come of it, and he talks of BILLIONS as if its mere Rand/CENTS! zuma: an embarrassment to SA, a disgrace to the citizens of SA, a greedy slob who hopefully, most us will live to see his demise with a sense of relief.

  • john.turner.58760608 - 2012-10-01 08:43

    Will Zuma's expenditure at Nkandla be included?

  • richard.zanner - 2012-10-01 08:56

    Not sure who watched Carte Blanche last night and the view of some of the political annalists talking about Malema and his alleged offences. The point was that one cannot even begin to get rid of all this corruption where your own leader came into power in a cloud of corruption allegations that are perceived to have been swept under the carpet. Interesting is that Malema has always done what he is doing now and no questions were ever asked. Now that he is openly opposed to Zuma in that same week he gets arrested. He is not worried because if he does get Zuma out then he will get the protection of the next one and Zuma will be left out to dry for his corruption case. The picture is so clear and yet so few seem to see it. South Africa's rating internationally has taken a dive and an economic disaster is expected due to no leadership, break down of infrastructure, corruption, lack of exports. The rand is expected to slide which again hits petrol prices etc. These guys have really done a great Job.

      butch.poulter - 2012-10-01 10:15

      So once again what can we the "gatvol" public do about it. Do we just keep paying. Big business could put a bit of pressure (FNB CEO earlier this year) on the governmet, but they are so busy trying to please the ruling party (Woolies) they have forgotten about the public.

  • henk.vanrensburg.31 - 2012-10-01 09:02

    Since 1996 and you act now......

      john.bucknall.1 - 2012-10-01 10:09

      It's election time, smoke and mirrors and a lot of waving the "spear"

  • winifred.watson.9 - 2012-10-01 09:48

    What happens to all these probes....absolutely nothing. The same people who build these inflated fall down houses keep getting more tenders and more tenders......check out the Mpisane's just to name one. The back in busines with millions going for them again. Not only did they build suspect housing the diddled the taxman as well and still going strong.

  • kingkongVB - 2012-10-01 13:23

    wat maak dit saak any way fork all gebeer met hulle as hulle gevang word nie

  • marthinus.oosthuizen.7 - 2012-10-01 14:17

    Just another probe. Just another 4 billion.

  • carolyn.myburgh - 2012-10-01 14:35

    It's taken since 1997 till now to investigate (still investigating) why the hurry??? take your time

  • thulani.mthimkhulu.5 - 2012-10-01 16:22

    Excellent work Mr President, can we also get the Findings/Breakdown lost to corruption!!!

  • pages:
  • 1