Prison-based syndicate behind illegal RDP house sales, says MEC Duma

A criminal syndicate allegedly operating from inside a prison and involving a traditional leader has been linked to the illegal sale of RDP houses in KwaZulu-Natal, with a key suspect set to appear in court later this month. According to the KwaZulu-Natal Transport and Human Settlements MEC, Siboniso Duma, said the findings form part of the province’s ongoing #NenzaniLaEzweni operation, which aims to root out corruption and fraud within the housing system. He said a team of investigators had exposed how state-subsidised homes meant for South African beneficiaries were being illegally allocated to foreign nationals through corrupt networks.

In one case, he said, investigators discovered an RDP house intended for a local beneficiary occupied by an undocumented Mozambican national who had no valid passport or legal status in the country. According to Duma, the occupant was in possession of only a foreign identity card, raising serious concerns about how the property had been allocated. “Further evidence revealed that this house was handed over to the foreign national by an unauthorised third party, bypassing the official Housing Subsidy System protocols,” Duma said.

He said the investigation has since identified a prisoner and a traditional leader as alleged masterminds behind the scheme, which is believed to be part of a broader network manipulating housing allocations. Duma added that the team of investigators 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 Services as part of dismantling the syndicate. He said the probe has also uncovered widespread fraud linked to the Floods Disaster Relief Fund, suggesting the corruption extends beyond housing allocations. Duma said investigations into the illegal sale of RDP houses were at an advanced stage across several municipalities, including Alfred Duma, KwaDukuza and Inkosi uMtubatuba.