eThekwini clarifies role in flood-relief housing fraud allegations
eThekwini Municipality has distanced itself from an alleged housing-fraud case involving a beneficiary of the Illovu Housing Project, saying reports identifying the suspect as a municipal employee are incorrect.
Source: Pexels.
The city said the accused works for a private company and allegedly misrepresented her employment status to qualify for housing assistance intended for families affected by the 2022 floods. Individuals earning more than R3,500 a month are ineligible for subsidies.
According to the city, the discrepancy was detected by the KwaZulu-Natal Department of Human Settlements, which is responsible for implementing the project, as well as registering and approving beneficiaries.
While the identities of those alleged to have collaborated with the suspect have not been disclosed, eThekwini Municipality emphasised that it has not been involved in the subsidy registration, or approvals of potential beneficiaries linked to the Illovu Housing Project.
“The approval and non-approval of beneficiaries is managed through the Housing Subsidy System, which is managed by the Provincial Department of Human Settlements and not eThekwini Municipality,” the municipality said in a statement on Tuesday, 3 June 2026.
The municipality added that all beneficiary approvals for the project are undertaken by the Provincial Department of Human Settlements.
The city said it is disappointed by the false narrative being published and called for corrections to be made where incorrect information had been published.
A 64-year-old woman, allegedly acting as the kingpin of a massive cartel, appeared at the Durban Magistrate's Court last week, for fraudulently obtaining a government-subsidised house intended for 2022 flood victims. The case was postponed to 22 June 2026.