16 March 2000
Due to complaints regarding the various housing subsidy projects and individual subsidy applications in Gauteng, a task team was established in order to investigate the allegations of maladministration, poor performance, non- delivery of houses and corruption. The task team consists of representatives of the Office of the Public Protector, the Auditor General and the Heath Special Investigating Unit.
The investigation has been ongoing since May 1999 with progress and results in various spheres. The Dispute Analysis and Investigation Department of PriceWaterhouseCoopers is assisting the task team. The Gauteng Department of Housing has given their full co-operation and assistance to the task team.
The support of the Department is evident in their provision of staff, industry expertise and funds to the task team. This support by the Department is indicative of their will to expose maladministration, abuse or unjustified exercise of power and improper or unlawful enrichment.
The task team has finalised various in-depth forensic audits of specific project-linked housing schemes and identified certain irregularities including:
Since the task team revealed and quantified the irregularities the relevant developer applied for and was granted an order for its liquidation.
The Heath Special Investigating Unit has issued summonses to different developers.
The investigation is continuing and various other projects have been identified for detailed audits. Planning sessions between the relevant role players concerned have ensured that there is no duplication of efforts and the joint approach by the various offices and units have proven to be highly effective.
Due to the extensive nature of the investigation it is still impossible to link a time frame to its conclusion. It must however be emphasised that adapting and adopting new procedures at the Department immediately rectifies problems exposed. The possibility of further expanding the investigation to other Provincial Housing Departments is also being evaluated at this point.
The ultimate goal of this investigation is to ensure compliance with the spirit of the Housing Legislation which entails inter alia the provision of ownership of immovable property and access to basic top structures and services to previously disadvantaged individuals.
The investigation reveals a plethora of fraudulent activities which not only entail a loss to government but also a loss to the poorest of the poor.
The multi-disciplinary approach of the investigation and the establishment of the crack team of senior investigators is to ensure that the fraudulent activities involving millions of tax payers monies are brought to an end. All options will be exercised to achieve this goal including prosecution, cancellation of contracts and even black listing of offending individuals or companies.
Press Release by the Public Protector
Enquiries: Nicolette Teichmann
Tel: (012) 322 1190
Cell: 082 333 5624