City welcomes arrest of two City officials after City-SAPS team investigation
19 October 2023
STATEMENT BY THE CITY’S MAYORAL COMMITTEE MEMBER FOR HUMAN SETTLEMENTS, COUNCILLOR CARL POPHAIM
As the City, we welcome and utterly support the arrest yesterday, 18 October 2023, of two City officials (one is an ex-official after resignation) and two private individuals for alleged housing fraud in a site and service project in Mfuleni amounting to some R900 000. We have been integral in the investigation conducted by the investigative authorities in line with our zero tolerance approach to fraud and corruption in this administration. The case was initially driven by the City’s Special Investigative Unit to ensure the highest potential success of prosecution.
The one accused official resigned with immediate effect and the other is being suspended. This serves as a warning to all City employees, public representatives and private individuals involved in our projects: we will stop at nothing to root out fraud and corruption and ensure that public money and vulnerable individuals are protected.
The suspects are to appear in the Bluedowns Magistrate Court tomorrow, 20 October 2023, accused of the illegal sale of municipal plots at the City's Extension 2 Mfuleni project. They face 11 charges of fraud.
The Mfuleni Extension 2 project is an innovative one where the City made plots available to qualifying beneficiaries for the development of housing. However, the two City officials are alleged to have fraudulently approached the other two accused to ask if they knew of anyone wanting to buy plots, directly from them. It is alleged that they set their price at R100 000 and 11 prospective buyers paid amounts for these plots directly to the four accused.
My heart breaks for the victims of the alleged fraud. City projects will never require prospective beneficiaries to pay money to be on a list or to receive a property. There are countless housing scams we hear of involving private individuals and fraudsters and the victims lose all their money. Whenever residents are in doubt, it is always best to wait and ask for advice at our official City administration offices across the metro. This serves as a warning that we will absolutely investigate all substantiated housing fraud claims in this administration where officials are alleged to be involved.
I encourage anyone with information on any alleged fraudulent activity related to housing to approach me directly. I have set up an email account MMCHumanSettlements@capetown.gov.za where all complaints may be directed and members of the public may do so anonymously.
I will not tolerate any instances of fraud and corruption in my directorate. This administration is dedicated to high levels of service delivery, clean governance and good financial practices. That is our standard, and anyone who compromises this will face the full extent of the law.
The City's Human Settlements Directorate spent more than 99% of its budget in the previous financial year – a top performer in the City dedicated to the most vulnerable residents in Cape Town.
The City has received unqualified audits every year since 2006.
As with all City projects, qualifying beneficiaries are objectively assessed in terms of the Housing Needs Register and the City's Allocation Policy, which is an objective tool, within a fair and independent process.
Tip offs may also be made here:
Anonymous tip-offs!
Phone 24/7:
0800 00 6992
Email: SSIMS.SSIUReporting@capetown.gov.za
End
Published by:
City of Cape Town, Media Office
