Hawks arrest six over R7.9m ‘Housing Subsidy fraud’ in Free State

Six officials at a Free State Department of Human Settlements appeared before the Bloemfontein Magistrate Court on allegations of fraud related to the irregular expenditure of Housing Subsidy system that amounted to R7.9 million.

On Thursday, 12 August 2021, the accused, Ketlhwoecoeng Mildred Setlaba (45); Motebang Frank Mokoena (45); Sarah Bantikile Saila (63); Muso David Makae (62); Meshack Modise Tlokotsi (54) and Thato Goodwill Sempe (50), were arrested by the Hawks’ Serious Corruption Investigation Bloemfontein assisted by Serious Economic Offences Unit in Pretoria.

It is alleged that from 2011 to 2012, three of the accused engaged in unauthorised negotiations with some of the service providers for the Department outside their jurisdiction.

This was so that they could engage in irregular and corrupt activities. The accused were working in the Department of Human Settlements. 

They used the Housing Subsidy System (HSS) to identify old projects of the financial years from 2008 to 2009. The projects still had remaining allocated budgets. 

They also falsified undue claim payments which were processed through financial districts of the Department. 

It is further alleged that the three officials received the sum of R520 000 for their services to these service providers. The series of these claims led the Department to suffer a total loss of R7.9 million. 

The case against the accused has been postponed to Friday, 03 September 2021 and all the accused were released on R5000 bail each.