The eThekwini municipality has suspended officials linked to purportedly irregular and fraudulent transactions amounting to R17m relating to three housing projects.
The municipality revealed this in a statement on Sunday. It said the three housing projects were in Umlazi T-Section, eMaphephetheni and KwaMakhutha.
City spokesperson Gugu Sisilana said the officials were suspended after the municipality, through its internal control processes, last month uncovered an elaborate fraudulent scheme in which R17m was paid to two companies.
Another six officials have been issued with letters of intent to suspend.
“Details of how the payments were processed are part of an ongoing investigation by the city integrity and investigations unit,” she said.
The city refuted reports that the amount involved was R32m, adding that money also did not “disappear” or go “missing” but was fraudulently transferred.
“In addition, the three housing projects linked to the fraudulent scheme have nothing to do with resettling flood victims, they are ordinary projects of the municipality’s human settlements unit.
“The three housing projects are continuing, however there will be a budget shortfall in the current financial year which means their estimated completion will now be during the 2024/25 financial year,” said Sisilana.
She said the city remained committed to rooting out fraud and corruption “wherever it rears its ugly head”.
TimesLIVE
eThekwini suspends officials for fraud linked to housing projects
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The eThekwini municipality has suspended officials linked to purportedly irregular and fraudulent transactions amounting to R17m relating to three housing projects.
The municipality revealed this in a statement on Sunday. It said the three housing projects were in Umlazi T-Section, eMaphephetheni and KwaMakhutha.
City spokesperson Gugu Sisilana said the officials were suspended after the municipality, through its internal control processes, last month uncovered an elaborate fraudulent scheme in which R17m was paid to two companies.
Another six officials have been issued with letters of intent to suspend.
“Details of how the payments were processed are part of an ongoing investigation by the city integrity and investigations unit,” she said.
The city refuted reports that the amount involved was R32m, adding that money also did not “disappear” or go “missing” but was fraudulently transferred.
“In addition, the three housing projects linked to the fraudulent scheme have nothing to do with resettling flood victims, they are ordinary projects of the municipality’s human settlements unit.
“The three housing projects are continuing, however there will be a budget shortfall in the current financial year which means their estimated completion will now be during the 2024/25 financial year,” said Sisilana.
She said the city remained committed to rooting out fraud and corruption “wherever it rears its ugly head”.
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