The Department of Human Settlements has issued a warning after a new housing scam emerged, with housing seekers being billed R100,000 for subsidized government houses.
The new scam has recently emerged on social media platforms.
According to the department, scammers falsely claim to be department employees and offer assistance with government-subsidised housing applications for the Breaking New Ground (BNG) initiative.
The BNG is a Department of Human Settlements initiative for the development of integrated sustainable housing.
How the scam works
As part of the Cabinet approved Comprehensive Housing Plan government provides a 40-m2 house with two bedrooms, a separate bathroom with a toilet, shower and hand basin, a combined living area and kitchen with wash basin, and a ready-board electrical installation where electricity supply is available in the township, to qualifying households earning less than R3,500 a month.
The scammers target unsuspecting citizens and offer BNG government subsidized houses around the country at a staggering cost of R100,000.
Human Settlements has emphasised that applications for BNG houses can only be processed through the provincial Departments of Human Settlements and municipalities.
No private organisation has the authority or mandate to facilitate a home application on behalf of government of the Department of Human Settlements.
“To qualify for a fully subsidised government house, applicants must meet specific criteria, including being a South African citizen, a first-time homeowner, and having a combined household income of less than R3,500 per month,” the department said.
South Africans have now been urged by the ministry to exercise caution and report suspicious social media accounts to the department or municipalities immediately.
“To verify authenticity and avoid potential scams, citizens can contact the national Department of Human Settlements directly on 0800 146 873 or via email at [email protected], or visit their local municipal offices,” the ministry said.
“The department remains committed to providing safe and affordable housing opportunities to qualifying South Africans and urges citizens to remain vigilant and report any suspicious activities.”
Not the fist scam
This is not the first scam to try and get money from vulnerable citizens.
In July, the Gauteng Department of Human Settlements issued a warning the public to be alert of corrupt people claiming to sell BNG houses and vacant land.
According to the head of communications, Tahir Sema, illegal trading of BNG houses is becoming prevalent as swindlers disguise themselves as officials of the department.
MEC for Human Settlements’ spokesperson, Gift Langa, added that social media has become a playing field for swindlers, thus individuals continue to fall prey, where they pay hefty amounts of money to secure fraudulent property.
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