News24 | Three Free State men accused of low-cost housing fraud arrested

Three men have been arrested for fraud, theft, and money laundering related to the building of low-cost housing in the Nala Local Municipality in the Free State.

Three men have been arrested in the Free State for fraud, theft, and money laundering related to the construction of low-cost housing in the Nala Local Municipality.

According to Hawks spokesperson Lieutenant Colonel Zweli Mohobeleli, the Department of Human Settlements appointed a service provider in May 2021 to build 47 foundations as part of the first phase of a housing project.

However, only 14 foundations were built.

“Over R1.1 million was paid to the service provider. However, it was later discovered that only 14 foundations were built, despite the department being billed for 47,” Mohobeleli said.

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“A Hawks investigation into the matter pointed to a collaboration between the service provider, development officer, consulting engineer, and project manager. Evidence to this effect was presented before the prosecution, resulting in warrants for their arrest being issued.”

Serious Corruption Investigation detectives arrested the development officer, consulting engineer, and project manager, aged 44 to 59, in Bothaville, Welkom, and Bloemfontein on Wednesday.

The arrest of the service provider is imminent, according to Mohobeleli.

The men are scheduled to appear in the Bloemfontein Magistrate’s Court later on Thursday.