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Mungo Soggot
A TOP official in Gauteng’s Housing Department has confessed to stealing more than R8-million from the province’s low-cost housing kitty.
Senior accountant Louis Botha handled the province’s disbursements from the National Housing Fund – the central reservoir of funds for the government’s low-cost housing drive.
But lax controls within the provincial department enabled Botha to siphon cash into front companies for almost four years before he was exposed.
Botha used some of the proceeds to buy properties in Johannesburg’s eastern suburbs, where several of his friends are living rent-free.
He was only caught last year when Standard Bank noticed a strikingly large amount of money flowing into his credit-card account. The bank alerted the department, which then contacted the Transvaal attorney general’s office.
The Gauteng province accounted for roughly one-third of the R3-billion national housing fund budget for the 1996/97 financial year, and has been praised by central government for its speedy disbursement of low-cost housing funds.
Provincial housing officials plan to release a formal statement next week. The department has also sought “professional advice” to tighten up its systems.
Botha was convicted on 95 counts of theft in the Johannesburg Magistrate’s Court last month, after handing over a full confession.
He told the court he had “taken advantage of all opportunities” to pillage the fund from November 1992 until the middle of last year, when he was caught.
Botha set up a string of fictitious creditors on the department’s computer, forwarded them cheques from the fund and printed fake invoices.
He set up the front companies with the help of some of his friends, who shared the proceeds. The fictitious companies’ titles included three variations on the name of top estate agent Lew Geffen (who was not connected to the scam).
In his tell-all confession, apparently made in the hope of securing a lenient sentence, Botha also described how he drew up false invoices in the names of so-called creditors. He either forged the second signature required for the cheques or asked one of his department colleagues to sign – without letting them in on the swindle.
“I admit my behaviour was wrong and forbidden and I could be punished,” Botha said in his written confession.
“The concept of intent to steal has been carefully explained to me and I acknowledge that I had intention to deprive the state of its property permanently.
“I took advantage of all opportunities. I particularly acknowledge that I allowed payment to the fictitious creditors at every opportunity. I admit I wrongfully and with thieving intent stole R8 337 552 and 28 cents, the property of the state.
“It was possible to generate documents which created the false impression that payments by the department were legally owed to [the fictitious creditors],” he said.
The Transvaal attorney general’s office is investigating Botha’s accomplices. Botha is due to be sentenced in August, when the court will hear evidence in mitigation.
He was not available for comment this week.