/ 16 August 2010

Govt cracks down on dodgy housing contractors

The Department of Human Settlements is intensifying its crackdown on dodgy housing contractors and has drawn up a shortlist of 20 “problematic” projects worth R2-billion currently under investigation, Director General Chabane Zulu said on Monday.

Presenting an anti-corruption update in Pretoria, Zulu said 10 246 housing projects had been assessed by the special investigating unit headed by Willie Hofmeyr.

He said the top 10 dodgy contracts in each province were identified, and narrowed down to 20.

On average the contract amount is about R100-million per contract.

The national audit task team also probed housing syndicates and subsidy fraud in provinces and municipalities.

Since investigations began in 2007, R44-million has been recovered from provincial and municipal officials relating to human settlement grants for service delivery.

A total of R11-million has already been paid back into state coffers and 1 910 government officials have been arrested as unlawful beneficiaries of subsidies.

Zulu said 1 297 of these had been successfully prosecuted.

There was also increasing concern over housing syndicates, and investigations were under way into the selling and renting of state-owned houses primarily in Gauteng, the North West and KwaZulu-Natal.

“Three arrests have already been made in KwaZulu-Natal and suspects are currently in court. More arrested are expected in other provinces in the next six weeks,” he said.

Commenting on the updates, Human Settlements minister Tokyo Sexwale said it was not all about “doom and gloom”.

“We are very determined and steadfast in our campaign to clamp down in our fight against corruption … corruption in our country is endemic and it’s spreading so fast,” Sexwale said. — Sapa