Linda Ensor
13 October 2008
Cape Town — More than R11m had been recovered from housing subsidy fraud and uncompleted housing projects in Gauteng, while R26m was owed by developers to the Eastern Cape provincial government, Housing Minister Lindiwe Sisulu said last week .
The minister was questioned about the extent of corruption in housing developments by Democratic Alliance housing spokesman Butch Steyn.
In a written reply to Steyn's parliamentary question, Sisulu said forensic audits and/or investigations costing about R3m had been conducted into housing projects in at least five provinces in the past three years.
With regard to recoveries, she said the King William's Town Housing Association , in terms of an arbitration order, was required to repay about R26m to the Eastern Cape provincial housing department.
The order was obtained after the association failed to build the number of houses agreed upon in three projects at Ginsberg, Golf Course and Breidbach.
A claim had also been brought against the Attorneys' Fidelity Fund in respect of fraud and corruption committed by attorneys and conveyancers in KwaZulu-Natal. This had resulted in the repayment of R334000 to the provincial housing department.
"One conveyancer was also convicted of theft and sentenced to four years' imprisonment. A trial date is awaited in respect of other civil claims for approximately R8,6m against the Attorneys' Fidelity Fund," Sisulu said.
A further 40 potential criminal cases were under investigation in the Nelson Mandela Metropolitan Council regarding the receipt of housing subsidies by those who did not qualify for them.
Legal action had also been instituted against developers in Gauteng involved in the development of Protea North Extension 1, Unitas Park Extension 3, Sebokeng Extension 24, Beverly Hills, Protea South, Orange Farm, Vosloorus Extension 14 and Khayalami Properties.
Meanwhile, criminal cases had been finalised in respect of the Twins and Chicago Bulls housing projects in Western Cape.
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