Housing scandal: Two held

2003-02-10 21:18

Pretoria - Detectives from the Office for Serious Economic Offences (OSEO) arrested a couple in Orange Farm south of Johannesburg on Monday in connection with the illegal sale of low-cost houses in Gauteng.

Police spokesperson Superintendent Martin Aylward said the suspects worked for a private company responsible for finding beneficiaries for houses built under the Gauteng government's housing scheme.

"Instead of finding the beneficiaries the suspects, who worked on a commission basis, allegedly sold 15 houses for between R2 500 and R4 000 each. It is alleged that the suspects kept this money for themselves," Aylward said.

The houses were all sold to unsuspecting buyers in Lakeside between 1996 and 1999.

The couple, Sidney Makhetla, 45, and his wife Alice, 43, were charged with fraud.

They appeared in the Vereeniging Magistrates Court on Monday afternoon and were released on R500 bail each.

The case was postponed to February 12.

Gauteng Housing MEC Paul Mashatile ordered a forensic probe into allegations of fraud, theft and corruption involving at least 20 housing projects in the province in January last year.

Independent investigative and forensic experts George Fivas and CVMP Ramathe found numerous irregularities, including illegal sales and invoicing for houses not constructed.

The OSEO was then brought into the investigation.

Mashatile said in December the fraud and corruption had cost his department at least R42m.

The latest arrests bring to nine the number of persons arrested since the OSEO commenced with the investigation in mid-2002.

Investigations are continuing and further arrests are expected.

- SAPA