Key Point
- Authorities arrested three professionals linked to a R1.1 million low-cost housing scam in the Free State.
- Investigators found that only 14 out of 47 contracted foundations were completed, despite full payment.
- The Hawks confirmed that the service provider’s arrest is imminent as the investigation continues.
BLOEMFONTEIN, South Africa — On Thursday, three suspects will appear in the Bloemfontein Magistrate’s Court. Police arrested them in connection with a Free State housing fraud case involving a government-funded construction project.
Housing Project Fraud Uncovered in Nala Municipality
Authorities arrested the suspects — two aged 44 and one aged 59 — during operations in Bothaville, Welkom and Bloemfontein. They now face charges of fraud, theft, and money laundering. The charges relate to a low-cost housing project in the Nala Local Municipality.
Lt. Col. Zweli Mohobeleli, spokesperson for the Directorate for Priority Crime Investigation (Hawks), confirmed the arrests. He said the suspects include a development officer, a consulting engineer, and a project manager.
“In May 2021, the Department of Human Settlements appointed a service provider to build 47 housing foundations in Bothaville,” Mohobeleli said. “The department paid over R1.1 million for the work. However, the provider completed only 14 foundations.”
Investigations Reveal Coordinated Collusion
An internal audit uncovered the discrepancy, which prompted the Hawks’ Serious Corruption Investigation unit to take action. The team launched a probe and found evidence of collusion among the arrested officials and the service provider.
They submitted the evidence to the National Prosecuting Authority. Based on the findings, prosecutors issued warrants for the suspects’ arrest.
“We are still pursuing the service provider,” Mohobeleli said. “His arrest is imminent.”
Court Appearance and Ongoing Probe
The suspects will apply for bail during their first appearance in court. Meanwhile, investigators continue working to recover the stolen funds. They are also trying to determine the full extent of the Free State housing fraud case.
Officials emphasized their commitment to rooting out corruption in state-funded projects. Therefore, more arrests may follow.
