Durban, KwaZulu-Natal – The eThekwini Municipality has issued a formal clarification regarding recent media reports linking a suspect in an alleged housing fraud case to municipal employment, emphasizing that the accused is not a city employee but rather works for a private entity.
The statement follows widespread coverage of a fraud case connected to the Illovu Housing Project, a provincial initiative established to provide emergency housing assistance to families displaced by the devastating April 2022 KwaZulu-Natal floods.
According to the municipality, the suspect—a 64-year-old woman who appeared in the Durban Magistrate’s Court last week—is accused of falsely declaring herself unemployed to qualify for a government-subsidised home under the project. South African housing policy stipulates that individuals earning more than R3,500 per month are ineligible for such subsidies.
“The approval and non-approval of beneficiaries is managed through the Housing Subsidy System, which is administered by the Provincial Department of Human Settlements and not eThekwini Municipality,” the city stated in a Tuesday press release.
The discrepancy in the suspect’s application was reportedly identified by the KwaZulu-Natal Department of Human Settlements, which holds sole responsibility for beneficiary registration, verification, and approval for the Illovu project. The municipality further noted that it has played no role in the screening or endorsement of applicants linked to this specific housing initiative.
While allegations suggest the suspect may have collaborated with others to facilitate fraudulent applications, the identities of any alleged accomplices have not been disclosed. The municipality stressed that all beneficiary selections for the project fall under provincial jurisdiction.
The accused, described in court documents as an alleged ringleader of a broader fraud network, faces charges of misrepresenting her financial status to unlawfully secure a state-subsidised property intended for flood-affected households. Her case was postponed to 22 June 2026 to allow for further investigation.
In its statement, eThekwini Municipality expressed concern over what it termed “a false narrative” circulating in some media outlets and formally requested corrections where inaccurate information had been published regarding the suspect’s employment affiliation.
“The City urges the public and media partners to rely on official communications when reporting on matters involving municipal operations,” the statement concluded.
The Illovu Housing Project remains a critical component of post-flood recovery efforts in southern eThekwini, with hundreds of homes allocated to verified beneficiaries since its inception. Provincial authorities have reaffirmed their commitment to stringent vetting processes to safeguard the integrity of housing subsidies.
