City warns of housing fraud

2015-10-20 06:00

Housing beneficiaries have been urged not to pay anyone who alleges he can add them to housing waiting lists or give them a property.

The City of Cape Town has issued a warning while it is investigating cases in which people have been duped and paid for housing units or serviced sites.

“The City is looking into incidents where beneficiaries who qualify for a subsidised housing opportunity have allegedly been scammed. The City emphasises that, should a person qualify in terms of the national criteria for a subsidy, he must not pay any money to anyone to be placed on the housing database or to receive a property. All costs are carried by the City,” according to a statement by the City.

Pelican ParkPeople’s Post has also reported on such fraud cases in the Pelican Park housing development (“Housing headaches”, 15 September and “Duped locals lay charges”, 29 September).

Anyone who has been affected by a housing scam must report it to the police for investigation.

Benedicta van Minnen, mayoral committee member for human settlements, has urged housing beneficiaries to make affidavits at their nearest police stations if they have been scammed.

“We cannot allow these criminals to get away with this. Sadly, these scams often affect our most vulnerable and desperate residents,” Van Minnen says.

She adds the City has been told of cases in which housing beneficiaries have allegedly been duped into paying for subsidised houses in Pelican Park, “even though beneficiaries who are registered on the housing database and meet the necessary subsidy criteria are not required to pay money to be placed on the database or for their subsidised property, which includes serviced sites”.

“In addition, we are also looking into incidents where City-owned units in developments such as Blikkiesdorp and Wolwe­rivier have been ‘sold’ – sometimes for tens of thousands of rands. Such ‘buyers’ would not be able to register the property in their name and would be out-of-pocket with no legal deed to the property.

“We can only stop fraud if we all work together,” Van Minnen stresses.

Examples of housing scams include:

. Asking housing beneficiaries to pay money to be placed on the official housing database.

. Asking housing beneficiaries to pay money to receive a subsidised housing unit (commonly referred to as an RDP house) or serviced site.

. “Selling” City-owned units, houses or serviced sites for money.

. “Selling” RDP houses. The National Housing Act restricts the sale or rental of RDP houses within the first few years following the acquisition of the property by housing beneficiaries.

“Where this is done knowingly and with intent, it is fraud. Potential buyers must make sure that the property can legally be sold,” Van Minnen adds.

Residents can also contact the City’s fraud hotline on 0800 323 130

Join the conversation! 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.

Inside News24

Traffic Alerts
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 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.