/ 23 September 2003

R62m of irregularities in Free State housing dept

The Free State auditor general has found several irregularities after a forensic audit of the provincial department of local government and housing, SABC radio news reported on Tuesday.

The report — tabled in the Free State legislature on Monday — stated certain property deeds were not registered in the names of the respective applicants. Some properties earmarked for applicants were exchanged for other properties.

These irregularities involved an amount of R62-million in 4 300 cases.

Two-hundred-and-twenty-two subsidy allocations amounting to more than R2-million were apparently not correctly allocated on the basis of income. The value of the houses was allegedly inflated to correspond with the available subsidy amounts.

In some cases applicants received subsidies more than once.

The officials from the department who captured the transactions had been identified. — Sapa