KZN uncovers alleged prison-linked RDP housing syndicate

Friday, May 8, 2026

KwaZulu-Natal Transport and Human Settlements MEC, Siboniso Duma, has revealed the existence of an alleged sophisticated criminal syndicate operating from within a correctional facility and linked to the sale of RDP houses, including to undocumented foreign nationals.

Duma said the discovery forms part of an initiative aimed at rooting out corruption and irregularities in the allocation of subsidised housing.

According to the MEC, investigators uncovered a case in which a government-subsidised house, intended for a South African beneficiary, was instead occupied by an undocumented Mozambican national.

The individual reportedly possessed only a foreign identity card and lacked a valid passport or legal status document.

In addition, further evidence revealed this house was handed over to the Mozambican national by an unauthorised third party, bypassing the official Housing Subsidy System (HSS) procedures.

“The elite team has identified a prisoner and a traditional leader as masterminds behind this rot. The elite team, which is led by Head of the Department of Human Settlements Max Mbili, is working closely with the Department of Correctional Services and the South African Police Service as part of dismantling the syndicate,” the MEC said.

The elite team has also uncovered extensive fraud linked to the Floods Disaster Relief Fund. One suspect involved in this fraud is expected to reappear in court on 25 May 2026.

Duma noted that investigations into the sale of RDP houses are at an advanced stage in several municipalities, including Alfred Duma Local Municipality, KwaDukuza Local Municipality, and Inkosi uMtubatuba Local Municipality.

“We remind municipalities that the handing over of title deeds of houses to community members is the responsibility of the MEC and the Minister at the provincial and national levels, respectively,” he said.

The MEC also raised concern over complaints from communities in various municipalities, who claim they have been unlawfully removed from housing waiting lists.

“We will continue to act strongly against the manipulation of the list by anyone irrespective of any position in society,” he said. – SAnews.gov.za