Durban, KwaZulu-Natal – Clarifying its position amid renewed scrutiny over housing subsidy allocations, the eThekwini Municipality has formally distanced itself from a high-profile fraud case tied to the Illovu Housing Project, confirming that the accused individual is not affiliated with city operations.
The municipality’s statement comes in response to recent media coverage that mistakenly identified the suspect as a municipal staff member. Officials emphasized that the individual in question is employed by a private sector company and holds no official capacity within eThekwini’s administrative structure.
At the center of the allegations is a 64-year-old woman who appeared before the Durban Magistrate’s Court last week. She is accused of submitting false declarations regarding her employment status to qualify for a government-subsidised home under the Illovu Housing Project—a provincial relief initiative launched to support households displaced by the catastrophic April 2022 floods in KwaZulu-Natal.
Under national housing policy, applicants earning above R3,500 per month are ineligible for subsidy assistance. The alleged misrepresentation in the suspect’s application was reportedly flagged by the KwaZulu-Natal Department of Human Settlements, the provincial body mandated to oversee beneficiary registration, verification, and final approval for the Illovu initiative.
“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 its Tuesday release.
The municipality further clarified that it has not participated in the screening, endorsement, or allocation processes for this specific project. All decisions regarding beneficiary inclusion remain under the exclusive authority of the provincial department.
While court documents suggest the suspect may have operated as part of a broader network—with references to an alleged “cartel” involved in manipulating the subsidy system—the identities of any purported collaborators have not been made public.
The accused, described by prosecutors as a central figure in the alleged scheme, faces charges of fraudulently securing a state-funded housing unit intended for flood-affected families. Her matter was postponed to 22 June 2026 to allow investigators to consolidate evidence.
In its statement, eThekwini Municipality expressed concern over inaccurate reporting that linked the suspect to city employment and formally requested that media outlets issue corrections where such errors appeared.
“The City urges stakeholders and newsrooms to verify information through official channels before publication,” the statement read, reaffirming its commitment to transparency and accurate public communication.
The Illovu Housing Project continues to serve as a key pillar of post-disaster recovery in southern eThekwini, with provincial authorities maintaining that robust verification protocols remain in place to protect the integrity of housing subsidies for vulnerable households.