Investigations into an alleged property scam uncovered by the Democratic Alliance and Inkatha Freedom Party in KwaZulu-Natal are continuing, and more misspent funds are expected to be recovered, DA leader Tony Leon said on Thursday.
When KZN Premier Lionel Mtshali appointed the DA’s Wilson Ngcobo as housing MEC, the department, previously under African National Congress control, was ”rife with corruption”, Leon said in a statement.
”Through an official — who has been arrested and charged and is currently out on bail — the department allegedly purchased 27 properties worth over R70-million in less than four months.
”The taxpayers of KwaZulu-Natal were apparently buying run-down buildings and paying hugely inflated prices to an estate agent who was taking a 40% commission.”
Ngcobo had made fighting corruption his top priority, and suggested an independent forensic audit of the KZN housing department, and the premier’s office took the lead in organising the investigation, he said.
”Working together, the DA and IFP have unearthed the wrongdoing, and we are busy retrieving the missing funds.”
Several arrests had already been made, and the returned money would now be used to build houses for the poor in Stanger, in the Durban Metro area, and in other communities.
”That is the purpose for which the money was intended in the first place, before it was given away to unscrupulous estate agents and property speculators.
”The investigations are continuing and we hope to recover even more funds in the coming weeks so that new houses can be built for the poor,” Leon said. – Sapa