KZN housing fraud probed
2003-02-17 18:43
Cape Town - The Special Investigating Unit (SIU) is probing fraud allegations involving millions of rands in housing subsidies in KwaZulu-Natal.
In its interim report for 2002, tabled at parliament on Monday, the SIU says one case involves allegations of fraud by an attorney, housing department officials, housing subsidy beneficiaries, sellers, and payees named on department cheques.
Indications are that most of the transactions relating to the sale of properties were fabricated and never took place.
Investigations revealed that applications, title deeds and deeds of sale were either forged or completed with false information and forged signatures.
"Further findings show that none of the properties and houses that were purchased with subsidy money was actually transferred to the beneficiaries."
A forensic investigation into these transactions is ongoing.
The attorney's books of account are missing and the SIU is reconstructing all the books based on the available source documentation.
"Initial indications are that about R1.2m has been misappropriated," the report says.
In another case involving a different attorney, the SIU is also reconstructing the books of account "due to a lack of proper books of account".
In total, 1 500 financial records have to be scrutinised.
Although R3.4m was returned to the department, the money remains in a trust account pending finalisation of the SIU's investigation, the report says.
- SAPA