State cracks whip on housing subsidy fraudsters

More than 2200 public service workers have been arrested or convicted for fraud related to housing subsidies.

In a written parliamentary reply yesterday, Human Settlements Minister Connie September said that the personnel files of 1725 of the 2236 people arrested or convicted had been handed over to the provinces in preparation for disciplinary action.

September was responding to a question posed by IFP MP Petros Sithole.

She said a number of contractors hired to build the homes had been blacklisted.

"Investigations into housing contracts, including shoddy workmanship, are multiyear projects and the determination of how much money was lost could only be made once they had been completed," she said.

Said Sithole: "The whole of the department is corrupt. They must give us figures [and details of those involved]."

In another reply to a parliamentary question, September said that between April last year and June this year, the department had approved Finance-Linked Individual Subsidy Programme assistance to 330 people.

The programme was established in April last year with a budget of R14.6-million . It is intended to help people obtain a home loan.