GAUTENG DEPARTMENT OF HOUSING: PUBLIC PROTECTOR RELEASES REPORT

28 September 2000

The Public Protector, Adv Selby Baqwa SC has released his report on an investigation of alleged irregularities pertaining to the affairs of the Gauteng Department of Housing. The office of the Public Protector conducted this investigation after receiving a number of individual complaints in connection with the administration by the Gauteng Department of Housing (the Department) of matters relating to housing, housing subsidies and housing projects.

Complaints were received from various individuals, various CIVIC associations, a political party, concerned resident groups and employees of the Department.

The following specific complaints and allegations that were brought to the Public Protector's attention were investigated:

• That the former MEC for Housing and Land Affairs, Mr D Mofokeng, interfered with the selection process and appointment of two senior managers of the Department.
• That the Department failed to safeguard its own interests and those of the state by allowing the original copies of contracts to be put at the disposal of developers.
• That certain companies offering an inferior product at a price higher than that of competitors, were appointed as consultants.
• That the Department prematurely considered paying a developer an amount of R935 980.
• That criminal charges and the suspension of an employee were withdrawn to obtain her silence with regard to her alleged knowledge of incidents of impropriety that had occurred within the Department.
• That an employee was involved in criminal activities and was defrauding members of the public in their dealings with the Department.
• That the Department failed to attend to the complaints and enquiries of the public and that no appropriate mechanism exists to address complaints and queries.
• That all members of the Gauteng Housing Board are not objective and impartial in their decisions concerning housing projects.
• That the Department sells state land to large "white owned" corporations at discounted prices and far below market value while persons from the community concerned have to pay exorbitant prices if they wish to acquire land in the same area.

Thorough investigation revealed that the above allegations were largely without substance.

The office of the Public Protector also investigated alleged regularities pertaining to the Protea South Project Linked Housing Subsidy Scheme, and the Vlakfontein / Hammanskraal Project Linked Housing Subsidy.

From the investigation of the matters referred to in this Report, the Public Protector has come to the conclusion that:

• There is lack of proper control measures in the Department regarding the control and safeguarding of vital documentation, such as contracts.
• The mechanism established by the Department to attend to complaints by the public in connection with matters pertaining to housing is inadequate in terms of its capacity. Officials of the Department and the public are generally not aware either of the existence of the Small Complaints Bureau or of its powers and functions.
• The participation of members of a Provincial Housing Development Board in the lodging of an application and/or claims for payments by a developer to the Board can create a perception of impropriety, even though the interest of such a member has been declared and he/she excused him/herself from meetings of the Board when the development concerned was discussed.
• There appears to be a lack of proper liaison between the Gauteng Housing Board and the Department regarding proposed housing projects and compliance with the legislative and other prescripts pertaining to the approval, implementation and administration of such projects.
• There appears to be a lack of training of the officials of the Department and the members of the Gauteng Housing Board regarding the provisions of the legislation and other prescripts relevant to housing matters.
• In the cases of the Protea South, Vlakfontein and Hammanskraal projects referred to in this Report, there had been substantial non-compliance with the provisions of the Implementation Manual, to the detriment of the interests of the State and the communities affected by these projects. There had also been an alarming lack of control by the Department of these projects, which resulted in substantial overpayments being made to developers.

Recommendations

The Public Protector's recommendations include the following:

• That the Head of Department ensure that staff of the Department responsible for housing development matters be adequately trained in terms of the applicable legislation;
• That the Head of Department investigate whether disciplinary measures should be taken against any official of the Department who might have been responsible for lack of control and non-compliance;
• That the Head of Department, in consultation with the Auditor-General and / or the Heath Special Investigating Unit, take urgent steps to recover money that was unduly paid to developers involved in the two housing subsidy projects mentioned above;
• That the Head of the Department, in consultation with the Gauteng MEC responsible for housing, the Office of the Auditor-General and the Heath Special Investigating Unit, establish a departmental investigating body to investigate the housing development projects administered by the Department since 1995, with a view to determining whether or not there was proper compliance with the provisions of the relevant legislation and other prescripts, and if not, that appropriate remedial steps be taken and the Head of Department advised on what to do to prevent a recurrence of similar incidents.

Enquiries: Nicolette Teichmann
Tel: (012) 322 1190
Cell: 082 333 5624