The Special Investigating Unit (SIU) has launched an extensive probe into significant corruption allegations surrounding various projects funded by the Housing Development Agency (HDA) across multiple provinces in South Africa. This investigation comes following a proclamation signed by President Cyril Ramaphosa, aimed at uncovering deep-rooted maladministration linked to the agency’s operations between April 2016 and September 2023.
Specifically, the SIU’s inquiry will focus on several provincial Human Settlements departments in the Eastern Cape, Free State, Gauteng, KwaZulu-Natal, Mpumalanga, North West, Northern Cape, and the Western Cape. The investigation aims to scrutinise the HDA’s activities regarding the identification, acquisition, holding, development, and allocation of state, communal, and privately owned land, designated for residential and community purposes.
Critical aspects of the probe will also include the legitimacy of the contract awarding process for HDA projects. The SIU will assess whether contracts were awarded fairly, competitively, transparently, equitably, and cost-effectively, in strict adherence to the laws and guidelines set forth by the National Treasury and relevant provincial Treasuries. The unit is tasked with uncovering any unauthorised, irregular, fruitless, or wasteful expenditure incurred by the HDA and the associated provincial departments.
The investigation will not only examine the financial transactions related to the HDA but will also scrutinise the conduct of service providers and affiliated individuals implicated in any maladministration. This includes any improper or unlawful actions that may have harmed the public’s interests or violated legislative frameworks.
Moreover, the SIU is empowered to recover any losses sustained by the HDA, provincial departments, or the state tied to the allegations of corruption. This robust mandate underscores the government’s commitment to combating corruption and ensuring accountability within public entities.
This investigation has gained particular attention due to a scandal involving allegations made by a former HDA official. Reports indicate that in December 2023, former Human Settlements Minister Mmamoloko Kubayi demanded explanations regarding the approval of R20.3 million in pre-payments to consultants linked to the upgrading of the informal settlement programme (UISP), which was intended to benefit four Eastern Cape district municipalities.
The whistleblower also revealed in a statement that he was directed to promote specific companies in a meeting orchestrated by a senior executive in August 2021, highlighting a troubling pattern of preferential treatment in the allocation of substantial contracts valued at over R270 million for the 2021/22 financial year.
As the SIU embarks on this rigorous investigation, the implications of these findings may resonate far beyond financial repercussions, potentially influencing policies and practices within the housing sector and reaffirming the government’s stance against corruption.
