ACC probes fraud at City

THE Anti-Corruption Commission is investigating fraud and corruption at the Windhoek Municipality.

One official in the planning and property department has been suspended in connection with the fraud that is estimated to run into millions of dollars.It could not be established yesterday whether only the suspended individual is involved or whether the scheme could be the work of a syndicate.The fraud and corruption was detected in the Windhoek Municipality’s Build Together low-cost housing scheme.Elli Shipiki, head of the municipality’s planning and property department, yesterday confirmed that an individual in his department has been suspended on allegations of fraud and corruption.Shipiki said the Anti-Corruption Commission (ACC) began investigating the alleged fraud and corruption in October last year, adding that the municipality is conducting its own internal investigation into the matter.Shipiki said the ACC has issued the municipality with a summons to hand over relevant documents, adding that the municipality is doing all it can to cooperate.Shipiki would not comment on the amount involved, saying that ‘we are looking at a number of cases,’ and ‘these are very serious amounts which could run into the millions.’ It is believed that the amount involved could be between N$6 million and N$8 million.From 2000 to 2003 the scheme granted housing loans totalling N$9,2 million to 507 households in Windhoek to build their own houses. Only people earning less than N$3 000 a month qualify for the scheme.One Windhoek resident who spoke to The Namibian on condition of anonymity has been affected by the fraud.Those who qualify can apply to the Windhoek Municipality for loans for the construction or renovation of houses.Once approved, clients are requested to submit quotations from contractors for the work to be done. Money is never paid directly to the borrowers, but to contractors and suppliers of building material.It is believed that municipal officials would monitor the accounts of various clients and if the entire loan had not been used they would forge signatures and divert the funds into their own accounts or those of family or friends.The person who spoke to The Namibian said he still had credit on his loan to renovate his house.To his surprise he was recently summoned by the ACC for an interview about his loan.The man said an ACC investigator presented him with a quotation and payment receipt for work done at his house, which he was unaware of. When he denied that the work was done at his house, the ACC officials went to the house to take photos. According to him, the ACC official also presented him with a requisition order from the municipality requesting the work to be carried out, but he said his signature was forged on the document.’The amount on the quotation and which was paid out was exactly the same amount as that which was left in my account at the municipality,’ the man said.He fraud victim says he is not sure whether he would be required to pay back the amount paid out fraudulently.ACC director Paulus Noa could not be reached for comment.Shipiki said he could not comment on that specific case, but it was clear that more than one such transaction was under scrutiny.Shipiki said the situation was ‘unfortunate and regrettable’, adding that the municipality would await the recommendations from the ACC and its internal investigation.Shipiki said the law would be allowed to run its course ‘as those involved must be brought to book’.