Housing contracts of R4bn investigated

2012-09-30 18:34

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.

  • lazarus.masilela - 2012-09-30 18:45

    Does the investigations include zumaville and 203million for his Kzn home?

      husaberg.twostroke - 2012-09-30 19:00

      The new South-Africa MMMMMMMMMMMMMMMMM.

      ianon.ym - 2012-09-30 19:38

      Lets first investigate your need of home improvements of R203mill before you start spending our money Umfana.

      nicholas.graan - 2012-09-30 21:53

      I wonder if the cadres collectively agreed to try and steal as much money as possible as quickly as possible to get as rich as possible in order to try and stymie the system? It just seems almost impossible, and unbelievable that such massive amounts of money are involved. We have become so numbed by this grand scale looting of the countries resources and the fiscus that we just take it in our stride. The uneducated masses are not bothered at all as they keep voting them back in to continue looting.

      atholl.canterbury - 2012-09-30 21:55

      === {Problem} {Reaction} {Solution} === Create the problem .... investigate and expose in order to initiate a reaction .... then provide the solution. {Solution} { very similar to the electricity->load->shedding problem } ===Nationalize all Housing Construction.=== Govt will create a National Construction Company to build all homes (for card carrying citizens) {electricity} {solution} ?? Initiate a multi-billion Tender for Nuclear Energy driven electricity (to make the Arms Deal look like a picnic) and the Tender qualification to be hand-picked (maybe include man with big farm, big tummy, big smile, big beret with one charge money-laundering) ... ha!

  • henk.vanrensburg.31 - 2012-09-30 18:50

    16 years investigating, realy? So are we going to wait for the people to die before we convict them?

      ianon.ym - 2012-09-30 19:29

      I really want a job on one of those Investigation teams - WTF

      devon.riley.52 - 2012-09-30 20:04

      Yip at a cost of another R80 million. Pretty expensive houses

      lisa.a.bradshaw - 2012-10-01 08:05

      How much money was spent on investigating....

      kevin.watson.7906 - 2012-10-01 08:50

      It is cheaper to let them die, so they dont have to go through the cost of a trial before releasing them on medical parole!

  • winifred.watson.9 - 2012-09-30 18:51

    What about the Mpisane's Huge Crooked Contract and guess what they are still on the tender list and they are still building fall down houses. Eish, these people, only wipe one eye.

  • Clayton Richard Delport - 2012-09-30 18:52

    The contractors are also to blame, government and contractors must stop wasting peoples time and do the job correct and at the correct prices

  • kim.buren - 2012-09-30 18:59

    LOL and R203 Million is his own

      devon.riley.52 - 2012-09-30 20:05

      Of course we are working for Zuma, his wives and 50 children

  • beverly.young3 - 2012-09-30 19:01

    You know, when I see these continous articles, I feel like pulling my apron over my head and screaming!!!!!!! WHEN IS IT GOING TO STOP??

      pws69 - 2012-09-30 19:24

      only when the trough is completely empty, including exhausting international loans. Check Mugarbage for proof.

  • Mike Peach - 2012-09-30 19:13

    This has to be the most rotten country in the universe,its disgusting.

      henk.vanrensburg.31 - 2012-09-30 19:31

      Disagree Mike. The most rotten continent....

      kevin.watson.7906 - 2012-10-01 08:52

      Try Zimbabwe or Angola, you are just inexperienced.

  • terrylee.heuer - 2012-09-30 19:19

    The intention of the probe was to uncover the mismanagement and misuse of taxpayers money allocated to low cost housing projects since 1994.....Mr Zuma may I just remind you that R640billion of taxpayers money has been misused/stolen/lost since 1994 due to corruption and continues to be misused. The housing probe is just the tip of the iceberg please probe every department starting with your R203mil upgrade on your house (please justify to the taxpayer why you feel the need for this to be done and not use this money to finish building the houses for the people)!!! I'm so gatvol!!!

  • pierre.walt - 2012-09-30 19:20

    Only now? You are responsible for AA or BEE contracts excluding competent white people. F&&k you.

  • henk.vanrensburg.31 - 2012-09-30 19:24

    4 billion second ago... More ar less 120 years... Now 650 billion seconds.....o

  • sally.lewitt - 2012-09-30 21:52

    Our situation just gets worse and worse.. FFS! So many people have no homes that SHOULD of had! Its embarrassing to even look at Zuma and his cronies on TV. SA is on her knees crying.. and our hands are 'tied' behind our backs helplessly

  • Erna - 2012-09-30 23:28

    It would be interesting to know how many decent houses were really built since 1994? Not the numbers according to the corrupt anc but in reality.

  • vivian.harris.73 - 2012-10-01 07:05

    They investigating your R200m upgrade as well Mr Zuma?

  • andre.vandeventer.16 - 2012-10-01 07:50

    No wonder there is no money for education, protection (SAPF), defense and medical services.Millions are wasted on corrupt self enrichment dealings to supply houses to those that do not want to work and just want to "have".

  • mandla.hlatywayo - 2012-10-01 07:58

    where are the wrong people of those contractors,thats the problem with u anc.Today u investigate but no arrest at all,thats means no wrong doers after all.I dislike these?

  • quartus.vanzyl - 2012-10-01 08:00

    Yes, the leader will make sure that the findings of the investigations not be made known before the Bloemfontein (aka Mangaung) congress in December.

  • jacqui.daanevanrensburg - 2012-10-01 10:44

    what's new?.

  • Johan Diedericks - 2013-08-21 19:21

    Go check Nkandla. Zuma just installed two more showers with platinum finishes!

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