The Gauteng government stands to recover in excess of R200-million from unscrupulous developers and contractors in its probe into corruption in housing development, the provincial housing department said on Tuesday.
Departmental head Sibusiso Buthelezi told reporters that until March last year about 20 projects were investigated. Out of these about 117 criminal cases were registered with the police, involving more than 2 400 acts of fraud.
”During this period nine arrests were effected. The cost of the investigations came to R6,7-million in the 2002/03 financial year and R10-million so far in the current financial year.”
The investigation was constituted in February 2002 after there was a public outcry about payment of housing subsidies and the application of subsidy funding by developers and other intermediaries. The exercise also inculcated queue jumping and subsidy fraud.
The investigation ended in February last year and Gauteng provincial minister Paul Mashatile instituted a committee of inquiry to probe the matter further.
Buthelezi, who is also chairperson of the committee of inquiry, said civil claims in excess of R140-million had been issued against a law firm that acted on behalf of the South African Land Developers Organisation (Saldo), a construction company.
The developer received about R41-million for the construction of low-cost housing but investigators found that only five houses were built.
Saldo further received at least R31,5-million in respect of developer-driven individual subsidy payments to build about 2 400 houses. The investigation had found only about 318 houses either completed or partially constructed, he said.
The company allegedly committed the crimes between 1994 and 1996 under a number of subsidiaries. It has since been liquidated.
Buthelezi said various irregularities committed in the allocation of houses to non-qualifying beneficiaries by individuals and organisations were uncovered in Duduza, Katlehong, Lakeside, Bramfischerville and Tshepisong. — Sapa