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City Suspends Officials for Housing Project Fraud



City Suspends Officials for Housing Project Fraud

The eThekwini Municipality has taken decisive action by suspending officials connected to alleged irregular and fraudulent transactions, amounting to R17 million, associated with housing projects in Umlazi T section, eMaphephetheni, and KwaMakhutha.

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This move came after the municipality, during its internal control processes last month, discovered an intricate fraudulent scheme that involved payments to two companies. Furthermore, six additional officials have received letters of intent to suspend, reflecting the seriousness of the matter.

The details of how these transactions were processed are currently under investigation by the city’s Integrity and Investigations Unit. It’s important to note that the amount involved in the scheme is R17 million, not R32 million, as previously reported. Additionally, the funds were not ‘missing’ but were fraudulently transferred.

Contrary to earlier reports, the three housing projects tied to the fraudulent scheme are unrelated to the resettlement of flood victims; instead, they are standard projects overseen by the municipality’s Human Settlements Unit.


Although the three housing projects continue, the budget shortfall for the current financial year means their expected completion is now extended to the 2024/25 financial year.

The eThekwini Municipality is unwavering in its commitment to combat fraud and corruption, actively strengthening internal control processes and taking stringent measures against officials involved in any wrongdoing.

Source: City suspends officials for fraud linked to housing projects

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Photo: Supplied by Rising Sun Newspapers

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