2. Summary of Presentation
Background
Proclamation R7 of 2007
Operational Mandate
First Phase
Highlights
Current status
Second Phase/way forward

3. Background
Section 2(1)(c) (4) Housing Act 107 of 1997 imposes an obligation to National, Provincial and local spheres of government to ensure that housing development is administered in a:
Transparent , accountable and equitable manner
And upholds the practice of good governance
The Public Finance Management Act 1 of 1999, chapter 5: Part 2 and 3 provides for accounting officers to uphold and maintain prudent financial management measures.

4. Background
The Public Service Anti Corruption Strategy of 2002 enjoins departments to put in place measures to address and deal with corruption.
The Comprehensive Plan for the Development of Sustainable Human Settlements also known as the (BNG) makes provision for the rooting out of corruption in the implementation of National Housing Programs.

5. Background
In January 2006 the Auditor-General tabled a Report which indicated that our systems are susceptible to abuse and that among other things Government and municipal employees had unlawfully benefited from the low income housing programmes.

6. Proclamation R7/2007
The Presidential Proclamation (R7/2007, as published in the Government Gazette 29381) as well as a Memorandum of Understanding entered into in between Housing and the SIU in April 2007 provides for administrative and systemic measures to root out corruption.

7. Proclamation R7/2007 The proclamation mandates the SIU to investigate:
Mismanagement of low cost housing scheme
Failure to comply with the National Housing code and applicable laws governing the states low-income housing scheme resulting in the approval of subsidies to non-qualifying beneficiaries
Misconduct of officials

8. Operational Mandate to SIU
The Department has given the SIU a mandate to enforce contractual delivery, recover monies paid in cases of non-delivery, facilitate the prosecution of individuals and entities involved in criminal activities and submit the names of the Public Servants involved to the Department of Public Service and Administration for disciplinary action

9. First Phase
Focused on unlawful beneficiaries of government subsidized houses by Government employees
Acknowledgement of debts and recoveries of the subsidy amounts
Prosecutions of offenders
Referral to the DPSA for disciplinary process.

10. First Phase Focus of the first phase: Conveyancer fraud and theft
Subsidy fraud
Non-delivery of houses by building contractors
Misappropriation of funds in the Peoples Housing Project

11. Government employees exceptions per region

12. Findings In Respect Of Collections Of Files
Province
Identified
Not found
Damaged
Other LEA
Qualify by Dept. / Not handed over
Files not received
Handed to SIU
MPU
480
108
372 WC
572
211
361
KZN
708
GAU
2 188
859
1329 NW
552 70 34
104
448 FS
280 80
120
200 NC 90 29 61 EC
1484
238
654
234
1126
358
LIM
999
303
696
TOTAL
7 353
1 658
417
2 940
4 413

13. Table Of Prosecution Per Province
Convictions
Withdrawals
Decline to
prosecute
Arrests
Still Pending
Mpumalanga 72 10 82
Western Cape 51 24
110 35
KwaZulu-Natal
113 9 32
154
Gauteng 54
133 79
North West 31
Free State 1 2
Northern Cape 3 6
Eastern Cape
129
142 13
Limpopo
100 7 5
112
TOTAL
554 53 37
772
128

14. Collections Per Province 2008/2009
Rand Value
Western Cape
Eastern Cape
KwaZulu-Natal
Freestate
4 500
Gauteng
Mpumalanga
Limpopo
North West
Total

15. Disciplinaries Per Province For Non-Qualifying Beneficiaries
Disciplinaries Prepared
Disciplinaries Handed Over
Mpumanlanga 98 77
Western Cape 34
KwaZulu-Natal
237
Hand Over to commence on 12 June 2009
Gauteng
189 31
North West 59
Handover will commence on the 8 June 2009
Free State 1
Disciplinary file not finalised
Northern Cape 3
Eastern Cape 58
Awaiting outcome Premier's office
Limpopo 48
TOTAL
777
190

16. Breakdown of various income categories per province
Table 8: Breakdown of the various income categories per province
Province
Qualified
Partly Qualified
R42 001–49 999
R50 000–59 999
R60 000–69 999
R70 000–79 999
R80 000–89 999
R90 000–99 999
R and above
Files received
Files not received
Total number of applicants
LIM
531 89 37 24 8 5 1
696
303
999 EC 19 84
100 99 27 10 2 9
358
1 126
1 484 FS 50 16 13 80
200
280 NC 55 61 29 90
KZN
224
153 33 74 57 71 69
708
MPU
136
130 28 18 3
372
108
480 NW
290 52 30 34 14 6
448
104
552
GAU
1 005 95
106 49 17 15 4
1 329
859
2 188 WC
134
132 60 41
361
211
572
Totals
2 444
379
716
398
262
169
117 42 93
4 413
2 940
7 353

17. Subsidy Types

18. AG Government employee subsidies - Provincial breakdown

19. Highlights Prosecutions- 835 Total number Aod’s - 1608
Total Value of Aod’s- R R
Disciplinaries prepared- 777 19

20. Progress in respect of PHP investigations
The SIU entered into a separate agreement with the SIU to investigate 15 PHP investigations
6 investigations have been completed to date
The investigations focused on the loss of state funds allocated to the projects as well as any mismanagement iro officials ;members and employee of support organizations and building material suppliers
Investigations into the other 9 PHP projects are currently underway 20

21. Municipal files collected to date
Table 52: Municipal files collected to date
Province
Files Identified
Files Collected
Total Outstanding
Free State
785
340
445
Gauteng
1 879
1 612
267
KwaZulu-Natal
1 361
1 033
328
Limpopo
214
124 90
Mpumalanga
525
409
116
Western Cape
2 210
1 204
1 006
Total
6 974
4 722
2 252

22. The second phase Focus shall be on contract awarded i.e
Improper procurement processes
Contractual non performance
in-depth forensic analysis,
forensic accounting assessment,
On site investigation, quality and value for money
Verification of building of houses by contractors.

23. Benefits Build a culture of legal obedience
Investigations, prosecution and conviction serves as deterrent.
Systems improvements with strengthened checks and balances

24. THE END
THANK YOU