The Housing Development Agency (HDA) has placed three officials on pre-cautionary leave who are implicated in the awarding of a R15,3 million contract to build shacks in Tzaneen in Limpopo.

The SIU has found that the Aventino Group submitted fraudulent documents when it bid for the contract. The company’s director and five officials from the HDA are facing corruption-related charges, linked to the contract.

According to a statement by the HDA, two of the officials have been given their final warnings while the third has resigned. The HDA says it is also in the process of ensuring that the company, Aventino Group, is blacklisted at the National Treasury. Furthermore, the HDA says that it has not made any payments to the contractor pertaining to the incomplete units erected at Burgersfort Extension 10.

Two-point-five million rand has already been paid for the 40 units erected at the Talana Hostel in Tzaneen.

VIDEO: Two arrested for fraud in the R2.4 million contract to provide 40 shacks


VIDEO: Four suspects in R2.4 million shack fraud case due back in Tzaneen Magistrates’ Court