Housing fraud estimated at R2 billion

By Lelethu Mquqo
20 April 2011

Human Settlements Minister Tokyo Sexwale says his department is making progress in stamping corruption.

During his budget speech in Parliament, Sexwale said the Special Investigations Unit was probing at least 20 questionable contracts worth R2 billion.

He says they are also clamping down on organised crime.

Meanwhile, Democratic Alliance MP Butch Steyn told Parliament today that the Human Settlements Department is in crisis.

This, according to Steyn, is because 40% of all Government houses built since 1994 need to be either repaired, or demolished and rebuilt.

Government estimates this rectification process will cost some R58-billion.

Steyn says however, that the costs of relocating those affected have not been included.