Western Cape Human Settlements Department warns WC locals of government house subsidy scams

Housing fraudsters and scammers are using social media to lure gullible locals through social media. Picture: HENK KRUGER

Housing fraudsters and scammers are using social media to lure gullible locals through social media. Picture: HENK KRUGER

Published Jan 6, 2023

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The Western Cape Department of Human Settlements has issued a warning to Western Cape locals on house scammers.

The department has raised the alarm as housing scammers request locals to pay to get a house.

“The department recently learnt of a WhatsApp message that is being circulated, claiming to assist residents to receive a house within 2 weeks.

“Residents are then requested to pay R2 300 for the approval letter and title deed in order to receive a housing opportunity.” The Western Cape Department of Human Settlements said.

According to the department, areas that are targeted are Khayelitsha, Stellenbosch, Montana Paarl and Mitchells Plain.

“Residents should be aware that no payment is required to be placed on the housing demand database (ie. waiting list), to apply for a housing subsidy, or any related government housing service. The request for payment should alert residents to the offer being a scam.

“The particular WhatsApp message is one of many online housing scams preying on vulnerable residents. During 2022, the Department became aware of several Facebook accounts making similar claims to assist residents to receive a government housing opportunity for a fee. In one particular Facebook Account, “RDP House Application 2022/2023”, the individual claimed to be an employee of the Department.”

Western Cape MEC of Infrastructure, Tertuis Simmers said that vulnerable locals are being the main target of these social media scams and urged locals to be registered on the housing database at their local municipality to be considered for government housing.

The Western Cape Department of Human Settlements has reminded Western Cape locals on the criteria to qualify for government housing

Be a South African citizen or have a permanent residency permit.

Be 18 years or older.

Be married or living with a partner.

Be single or divorced and have proven financial dependants permanently living with them.

Earn a household income of R3 500 or less, before deductions.

Not be current or previous property owners.

Not have received a housing subsidy from the government before.

The Department also reminded locals that there are various subsidies available to assist residents earning between R3,500 and R22,000 gross monthly household income and that enquiries can be made at any municipal housing office.

Muneera Allie, the Department’s Acting Director for Communication has warned locals to be aware that fraudsters often know the systems of government and use this knowledge to lure vulnerable local residents.

“Perpetrators often have some knowledge of how government housing works and go as far as to create fraudulent approval letters and correspondence that may appear authentic and lawful. While some residents are also aware of how the system works, the mere suggestion of being bumped up on the waiting list prompts them to find the means to pay a requested fee to fast-track the process

“During 2022, one victim arranged for a R2000 loan in order to pay for an ‘approval letter’. Due to the nature of these scams and false social media accounts created to rip-off residents, it is challenging to crack down on these con artists.”

The Department has pleaded with local residents to be vigilant and know that no exchange of money is needed to get approval for a government house subsidy and no money is needed to be placed on the housing database.

“Residents are advised to contact the Department, or any municipal housing office, to verify and check a housing social media post or advertisement’s legitimacy. To report any fraudulent scams, residents must contact their nearest South African Police Services (SAPS) office for assistance.”