Western Cape Housing Land Deals Under SIU Microscope

The Special Investigating Unit (SIU) has launched a probe into 16 land deals in the Western Cape over allegations of inflated prices, unused land, and questionable middlemen fees. The investigation is part of a wider national inquiry into maladministration in the Housing Development Agency (HDA) and provincial human settlements departments, spanning eight provinces.

With over 100 transactions under review, the SIU is scrutinizing deals in Gauteng, North West, Free State, Northern Cape, Mpumalanga, Eastern Cape, and Western Cape, highlighting systemic concerns over how public funds meant for housing are being managed.

How Alleged Overpricing Worked

Chief National Investigations Officer Zodwa Xesibe explained the alleged process. Provincial human settlements departments transfer funds to the HDA with instructions to purchase specific land parcels. The HDA then obtains three valuations: one from the landowner and two independent valuations.

“The allegations indicate that these two additional valuations were grossly inflated to manipulate the purchase price,” Xesibe said. The inflated valuations often resulted in land being bought at prices far above reasonable market value, sometimes incorporating a middleman’s commission calculated at two to three times the purchase price.

The consequence? Much of the land purchased remains unused, leaving vulnerable families living in shacks while public funds are drained.

Political and Public Outcry

The revelations have sparked strong reactions from lawmakers and advocacy groups. Zelna Saira Abader (MK MP) called the situation an “institutional betrayal” of poor communities.

“The land bought years ago remains unused while families continue to live in shacks. Accountability cannot wait for 2026,” Abader said. She recommended a full forensic audit, including lifestyle audits of implicated officials, and immediate suspensions pending the SIU’s findings.

Similarly, Sakeena Frenchman (NCC MP) raised questions about next steps for criminal charges and public access to the report, highlighting widespread concern about transparency.

What Happens Next

The SIU confirmed that criminal referrals will be made to the NPA, which will involve the Hawks in preparing dockets for prosecution. They also emphasized that findings of public interest will be reported openly, ensuring that citizens remain informed of outcomes.

Both the HDA and the National Department of Human Settlements have pledged full cooperation with the investigation.

The Bigger Picture

This investigation underscores a broader issue in South Africa: the mismatch between housing development promises and delivery. Years of mismanagement and inflated land purchases have left communities without homes while public funds are siphoned into inflated deals.

For residents in the Western Cape and other provinces, the SIU inquiry offers a glimmer of hopebut also a stark reminder that systemic reform is urgently needed. As Abader put it, “We speak about the dignity of our peoplebut dignity means nothing if the land we buy remains empty while families continue to live in shacks.”

The SIU is expected to complete its inquiry by June 2026, and all eyes will be on the next steps toward accountability.

{Source: IOL}

Follow Joburg ETC on Facebook, Twitter , TikTok and Instagram

For more News in Johannesburg, visit joburgetc.com