RESPONSE FROM THE SOCIAL HOUSING REGULATORY AUTHORITY (SHRA) TO CITY PRESS ARTICLE “HOW TO LOOT 1.6 BILLION” PUBLISHED ON 1 JULY 2018

The SHRA would like to respond to the report made about the SHRA by the City Press on Sunday, 1 July 2018.

The SHRA supports vigilant detection, investigation and prosecution of all matters relating to the abuse or misuse of public funds for social housing. The SHRA is committed to a clean administration and making sure that no incidents of fraud and corruption take place in the future. All allegations and incidents of fraud and corruption received by the SHRA are and will continue to be investigated.

SHRA confirms that it is true that around 2011 and 2012, there were public funds that were transferred into the SHRA account by provinces in a manner that does not comply with the Division of Revenue Act. It is on public record that corrective measures have since been taken to deal with the irregular transfers. The former Minister of Human Settlements, Lindiwe Sisulu, in her Budget Vote Speech of 2013/2014 announced that the SHRA had been placed under administration and the process has been transparent and it is in the public domain.

Subsequent to the corrective action that was taken, the status of the projects involved is as follows:

• Connemara Village in Eastern Cape: Criminal charges were pursued against Camel Rock through the NPA and the SHRA won the case. The court ruled that the SHRA’s contract was valid. R61 Million worth of public funds recovered was moved back to the fiscus.
• Moko Phoenix Project in KZN: R80 Million worth of public funds was spent on the project and value was created. 1242 units have been delivered on site and tenanted. The irregular transaction has since been regularised through council approval.
• Marang Project in the North West: Public funds that were paid out for the project amounted to R85 Million. Investigations into the project have advanced and the initial contractor has been removed from site. 612 units were already under construction when the contract was terminated. The matter is currently with the Hawks, National Treasury and the NPA. SHRA together with the law enforcement agencies is still in discussions to find a way of completing the projects while the law takes its course.

In June 2017, it is also a matter of public record that the SHRA was placed out of administration and the SHRA has turned around and improved its performance.

Released by Rory Gallocher

CEO: SHRA

For enquiries, contact Ms Lesego Diale, Marketing and Communications Manager at SHRA on 011 274 6218 / 082 307 4267 or Lesegod@www.shra.org.za