More than 2 100 officials of Gauteng’s housing and local government department might be investigated after fraud of more than R133-million in the allocation of housing subsidies was revealed, Beeld reported on Monday.
These officials have received R32,8-million in subsidies, despite earning more than the minimum a family has to earn to qualify for the subsidy.
This is part of the findings of a report by the Auditor General (AG), who investigated housing subsidies allocated between January 1995 and March 2004.
According to the report, some officials wrote on their subsidy applications that both marriage partners were unemployed, while both actually worked for the department.
Some officials also lied about the income of their household, while others attached old receipts as proof of income.
Despite the AG’s finding that the control procedures were insufficient, the department’s accountable official insisted that the officials’ applications were apparently valid.
The AG also found that more than 1 600 people were receiving more than one subsidy. The value of this was nearly R27-million.
More than R25-million was also lost after 1 708 applications for subsidies were allocated to people who were, according to Home Affairs, already dead.
It is difficult to determine the exact extent of the fraud.
”The department couldn’t supply all the necessary subsidy application forms and therefore not all the planned audit procedures could be done,” the report read.
The department could also not find the supporting documents submitted for the subsidies that had been paid out. It was therefore impossible for the AG to determine the amount approved for subsidy payments.
Although the report had already been handed to the department and legislature in February, it has still not been discussed at a meeting of the provincial housing portfolio committee.
Kate Lorimer, Democratic Alliance MP and member of the housing committee, said it was a matter of concern. ”The legislature and portfolio committees are supposed to act as watchdog, and yet a damning report like this has not been discussed. Why not?”
The chairperson of the housing committee, Godfrey Tsotsetsi of the African National Congress, was not available for comment, Beeld reported. — Sapa