The eThekwini Municipality has moved to clarify its role following an alleged housing fraud case linked to a beneficiary of the Illovu Housing Project, stressing that the suspect is not a municipal employee.
According to the municipality, media reports incorrectly identified the suspect as an employee of eThekwini Municipality. The city said the accused is employed by a private company.
The allegations against the suspect relate to claims that she falsely declared herself unemployed in an attempt to qualify for housing assistance under the Illovu Housing Project, which was established to assist families affected by the 2022 floods.
The municipality noted that individuals earning more than R3 500 per month do not qualify for a housing subsidy.
According to the city, the discrepancy was detected by the KwaZulu-Natal Department of Human Settlements, which is responsible for implementing the project, as well as registering and approving beneficiaries.
While the identities of those alleged to have collaborated with the suspect have not been disclosed, eThekwini Municipality emphasised that it has not been involved in the subsidy registration, or approvals of potential beneficiaries linked to the Illovu Housing Project.
“The approval and non-approval of beneficiaries is managed through the Housing Subsidy System, which is managed by the Provincial Department of Human Settlements and not eThekwini Municipality,” the municipality said in a statement on Tuesday.
The municipality added that all beneficiary approvals for the project are undertaken by the Provincial Department of Human Settlements.
The city said it is disappointed by the false narrative being published and called for corrections to be made where incorrect information had been published.
A 64-year-old woman, allegedly acting as the kingpin of a massive cartel, appeared at the Durban Magistrate's Court last week, for fraudulently obtaining a government-subsidised house intended for 2022 flood victims. The case was postponed to 22 June 2026. – SAnews.gov.za
