More than R1.6 billion looted from the Eastern Cape: report
Service providers – including state-owned companies and government departments – have reportedly looted over R1.6 billion meant for social housing and other services in the Eastern Cape.
According to the City Press, citing three new reports compiled by National Treasury which it has seen – the money was looted and then spent on new cars, stays at boutique hotels and shopping sprees for luxury goods.
The reports are said to contain details on how much money was given to these service providers and what was subsequently done with it. Some of this includes:
- R341 million that was meant for housing for the poor – no houses were built;
- R260 million meant for mobile classrooms for four schools – counter to Treasury regulations;
- R38 million to the same company, without any documentation showing that work was done;
- R24 million also for mobile classrooms – the company was given another R8.6 million and R17 million without showing any work done.
- R84 million for road works that had already been done;
- R101 million “excess” paid for stones for a 23km stretch of road.
According to the City Press, of the monies paid to some companies in the report, as much as 74% was paid without a competitive tender process.
The Treasury reports also identified million of rands given to the companies for social housing being illegally transferred to private bank accounts.
The funds were subsequently used for luxury goods purchases, the paper said.
Read: VBS Bank was looted by some of its own executives – and a king: report
Loading ...