'Retirement home manager pocketed R2m in rent and bribes'

Former Johannesburg city’s area manager for housing in Region F Johanna Jacobs appeared in the Johannesburg Commercial Crimes Court on Wednesday on charges of fraud and corruption.

Jacobs was working as a manager at the Reuven retirement home in Booysens and saw 13 allegations of fraud‚ corruption and irregular conduct levelled against her. She managed the home from January 2011 until February this year. She resigned after learning she was being investigated‚ according to a statement of the city of Johannesburg.

It says Jacobs also managed two other retirement homes‚ Glenesk and Bella Vista in the south of Johannesburg. No allegations were brought against her in relation to these two homes.

It is alleged that she charged amounts ranging between R5,000 and R25,000 for the allocation of flats or units at Reuven retirement home in order to bypass the waiting list maintained by the Department of Housing. In her confession‚ she indicated that she received monies from 11 tenants totalling R18,000.

It is also alleged that some tenants paid their monthly rental money directly to Jacobs and that she did not pay it over to the city‚ resulting in the tenants owing large amounts of money to the city. Some tenants were apparently instructed by Jacobs not to pay their monthly rent. 

Other tenants were charged more than the current rental rate at Reuven‚ and Jacobs pocketed the difference after paying the standard rental amount to the city.

Rental reconciliation reports reflect that as at 1 February 2017 there was a total outstanding amount of R1.9-million due by the tenants of Reuven.

In some instances Jacobs allocated flats available after a death to her people and pocketed the monthly rental.

An investigation conducted by the city’s Group Forensic and Investigation Service also revealed that Ms Jacobs colluded with a number of officials from the City’s Department of Housing. Investigations are ongoing and more arrests are imminent.

In a statement‚ Johannesburg mayor Herman Mashaba says: "This is just one example which shows that even if you resign or get dismissed from the city‚ you are not off the hook‚ and we will pursue criminal charges and recoup what is due to the city. We will also continue to vigorously pursue every allegation of corruption.

"Corruption has no place in this administration and we will work tirelessly‚ and in collaboration with institutions such as the Hawks‚ SAPS and all other institutions within the criminal justice system to ensure that the residents of Johannesburg receive the quality services they deserve‚" Mashaba added. 

"I would also like to encourage people to report any fraud and corruption activities through our 24-hour tipoff hotline 0800-002-587 or to visit the GFIS offices at 48 Ameshoff Street in Braamfontein."