Fraud and corruption investigation into housing in South Africa
President Cyril Ramaphosa has given the Special Investigation Unit (SIU) the green light to conduct a countrywide investigation into how the National Housing Agency and provincial housing departments have handled their projects.
This investigation will probe into allegations of serious maladministration, fraud, corruption, and inflated land prices involving the Housing Development Agency, provincial housing departments, and CHIETA (Chemical Industries Education and Training Authority).
There will be a specific focus on improper land acquisitions, procurement irregularities, and undisclosed interests in discretionary grants, to recover state losses and identify systemic failures.
Concerningly, South Africa currently has a housing backlog of approximately 2.5 million citizens in desperate need of decent housing, with studies indicating that over a million people reside in informal settlements.
On 16 June, the SIU announced that it would investigate allegations of maladministration in the Housing Development Agency’s affairs, provincial departments and CHIETA.
It also plans to investigate all provincial departments of human settlements and the Chemical Industries Education and Training Authority (CHIETA). As part of these investigations, the SIU will recover any losses the State has suffered.
This inquiry was authorised by President Cyril Ramaphosa, who signed two new proclamations: Proclamation 265 of 2025 and Proclamation 267 of 2025.
Proclamation 265 authorises the SIU to investigate serious maladministration regarding identifying, acquiring, holding, developing, and releasing state, communal, and privately owned land.
This includes land designated for residential and community purposes, whether held in the Agency’s name, on behalf of provincial departments, or by the provincial departments themselves.
Under Proclamation 265, the SIU probe will also examine whether the procurement and contracting were made in a manner that was not fair, competitive, transparent, equitable, or cost-effective.
The SIU will also investigate whether they violated applicable legislation, guidelines, or instructions from the National or Provincial Treasury.
This includes the agency, provincial departments or the State’s unauthorised, irregular, or wasteful expenditure.
Additionally, the SIU will look into whether any unidentified payments received by the agency, departments, or the State were misappropriated.
The probe will also examine any irregular, unlawful, or improper conduct by agency and provincial department officials or employees, their suppliers or service providers, or any other person or entity implicated.
The Proclamation covers allegations of unlawful and improper conduct that occurred between 1 April 2016 and 30 May 2025.
It also covers any related activities before 1 April 2016 and after the date of the Proclamation that are pertinent to the matters under investigation or involve the same persons, entities, or contracts.
The investigation

SIU Spokesperson Kaizer Kganyagon explained on Newzroom Afrika that the cases brought to the SIU’s attention claimed that prices were inflated.
For example, when someone was approached to sell the land, the allegation was that the price was inflated. The amount paid was allegedly not reflective of the property’s real value.
Allegations also suggest there was collusion when setting prices. The government allegedly sought additional valuations and was complicit in allowing the price to fluctuate from the seller’s original request to what was ultimately paid.
In cases where the seller inflated the price and the buyer agreed to pay, Kganyagon said the issue is what happens to the money afterwards.
You might find, for example, that although the seller wanted a specific amount, the remaining funds may have gone elsewhere.
In cases like this, the SIU will investigate the allegations and follow the money to determine who may have benefited unfairly.
Proclamation 267

Proclamation 267 authorises the SIU to investigate allocating discretionary grant funding to entities where CHIETA employees or officials may have undisclosed or unauthorised interests.
It also authorised the SIU to investigate the extent of any benefit derived by such employees or officials of CHIETA.
The SIU will also seek to establish whether the CHIETA or the State suffered any losses or actual or potential prejudice due to fraud, corruption, irregularities, malpractices or maladministration.
Additionally, the SIU will probe the procurement of, or contracting for, information and communications technology services and auditing services by or on behalf of CHIETA.
It will also investigate whether payments for these services were made fairly, equitably, transparently, competitively, and cost-effectively.
Any actions contrary to applicable legislation, including directives from the National Treasury and CHIETA’s guidelines and policies, will be scrutinised.
The SIU will examine whether there is any irregular, improper, or unlawful conduct by CHIETA employees, officials, or other associated parties, along with any resulting wasteful or fruitless expenditure incurred by CHIETA or the State.
The Proclamation covers allegations of unlawful and improper conduct that occurred between 1 January 2016 and 13 June 2025.
It also includes any related activities before 1 January 2016 and after the date of the Proclamation that are relevant to the investigation or involve the same persons, entities, or contracts.
Beyond investigating maladministration, corruption, and fraud, the SIU is committed to identifying systemic failures and recommending measures to prevent future losses.
In line with the Special Investigating Units and Special Tribunals Act 74 of 1996 (SIU Act), the SIU will refer any evidence of criminal conduct uncovered during its investigation to the National Prosecuting Authority (NPA) for further action.
Under the SIU Act, the SIU is also authorised to initiate a civil action in the High Court or a Special Tribunal in its name to address any wrongdoing identified during its investigation resulting from acts of corruption, fraud, or maladministration.
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