Housing contracts of R4bn investigated

2012-09-30 18:34
An RDP house (Duncan Alfreds, News24)

An RDP house (Duncan Alfreds, News24)

Multimedia   ·   User Galleries   ·   News in Pictures Send us your pictures  ·  Send us your stories

Cape Town - The total value of housing contracts being probed by the Special Investigation Unit (SIU) stood at R4 billion, President Jacob Zuma said on Sunday.

Replying in writing to a parliamentary question, Zuma gave an update of the status of the SIU's investigations.

In respect of the human settlements department, the president said 59 low cost housing contracts were identified by the SIU for investigation.

"From the aforementioned 59 contracts, the investigations into 42 contracts have been completed and the investigations into 17 contracts are still on-going across seven provinces," said Zuma.

Some of these contracts dated back to as far as 1996.

The investigations started in April 2007 and were originally due for completion by 2010, but the deadlines were extended several times.

The probe into the alleged misappropriated housing subsidies was done in March and a final report was being prepared.

"The estimated date for the conclusion of the remaining investigation is 30 April 2013," said Zuma.

The president said the SIU had already made several "systemic findings" on the 17 contracts which were still being probed.

These include non-compliance with the Housing Act and National Housing Code as well as contraventions of procurement procedures.


Zuma said other findings by the SIU include:

- Fruitless and wasteful expenditure amounting to R27.9m for certain investigations;

- Potential losses estimated at over R71m suffered by provincial departments;

- Potential recoveries amounting to over R100m in respect of certain investigations;

- Various instances of misconduct by officials, employees or agents of the institutions; and

- Possible criminal charges against some of the previous and/or current heads of departments.

The intention of the probe was to uncover the mismanagement and misuse of taxpayers money allocated to low cost housing projects since 1994.

Read more on:    siu  |  cape town  |  tenders  |  housing

Join the conversation!

24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Inside News24


Millions of plastic particles in our food!

Scientists and researchers believe that almost five million tons of plastic is dumped in the oceans every year and it’s affecting our food.



Plastic on your plate
Prince George the green prince?
Lean, green, drifiting machine
One man's $1 million vision for an eco Africa

Book flights

Compare, Book, Fly

Traffic Alerts

It may be hard to maintain a steady rhythm as you find yourself juggling a zillion things. Slow down a little and let go of some...read more

There are new stories on the homepage. Click here to see them.


Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.


Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.