The Special Investigating Unit (SIU) says the R15.3 million tender for the provision of temporary accommodation structures at the Talana hostel in Tzaneen, Limpopo, was awarded fraudulently.
The SIU has completed its investigations on the contract which erected 40 shacks at the hostel last year. The company and its director, Constance Mohlala and five officials in the Housing Development Agency, a subsidiary of the Human Settlement department, are facing charges of alleged corruption related to the tender.
The investigations also revealed that out of 192 units that were initially budgeted for, only 40 units have thus far been erected at Talana. Similar incomplete structures were also erected in Burgersfort.
The SIU says R2.5 million has thus far been paid to the contractor. The investigating unit will be instituting a civil claim at the Special Tribunal in order to have the contract set aside and recover funds paid to the company.
VIDEO: Uproar over Limpopo housing project in Talana outside Tzaneen
VIDEO: Minister Sisulu makes changes at Housing Agency following Tzaneen shack debacle