Two City of Cape Town employees were among four people busted for a housing scam in which 11 mense got swindled out of nearly R1 million.
They were arrested in Mfuleni for allegedly selling municipal plots at the City’s Extension 2 Mfuleni project.
Police confirmed they were set to appear in the Blue Downs Magistrate’s Court this morning, facing 11 charges of fraud.
The case was initially driven by the City’s Special Investigative Unit to ensure the highest potential success of prosecution, says Mayco member for Human Settlements, Carl Pophaim.
“The Mfuleni Extension 2 project is an innovative one where the City made plots available to qualifying beneficiaries for the development of housing.
“However, the two City officials are alleged to have fraudulently approached the other two accused to ask if they knew of anyone wanting to buy plots, directly from them,” he explained.
“It is alleged that they set their price at R100 000 and 11 prospective buyers paid amounts for these plots directly to the four accused.
“The City welcomed the arrest of two officials after a City-SAPS investigation.”
Pophaim states that one accused City official resigned with immediate effect and the other was being suspended.
Meanwhile, police spokesperson Andrè Traut says seasoned detectives attached to the provincial Commercial Crimes Unit were assigned to investigate allegations of fraud after the City made available plots for a housing development in Extenstion 2 in Mfuleni last year.
“Two City of Cape Town officials collaborated with two others to market these plots and with their criminal scheme, they persuaded 11 prospective buyers to deposit money into a bank account which was shared with the two officials.
“This fraudulent scheme resulted in a financial loss of R900 000 suffered by the victims for real estate that they never received ownership of.
“The two City officials are aged 51 and 55, and the two other suspects are 28 and 36. As the investigation unfolds, more arrests could be made,” Traut added.
National Coloured Congress (NCC) councillor Hanif Loonat, who previously blew the whistle on alleged tender fraud in the City, is not surprised by the arrest.
“Housing has lost billions in the last 10 years, with the help of high-ranking officials, that is why we need a full audit to be done from both national, provincial and local governments.
“This corruption deprives the [indigent] people of the Western Cape of their right to ownership of homes,” Loonat said.
He adds that it’s a “crying shame” as ou mense are still on housing waiting lists.
“They die without dignity, they die fighting, without the homes they’ve been waiting for for decades.
“The NCC is calling out the mayor and president, for a full-scale SIU investigation. If they are not going to clean this department, we will haul them to court, we will get an interdict,” Loonat warned.
tracy-lynn.ruiters@inl.co.za