"We are in the process of taking close to 30,000 government officials through a legal and prosecution process to recover the subsidy money they obtained fraudulently," said a statement released after a briefing in Johannesburg on the department's progress.

Over 600 officials have been convicted and punished so far, the statement said.

"We will not rest until all of them are dealt with both by the courts and also by the government as an employer," it said.

In addition, crooked developers who bribed officials to have projects cleared would be taken through the courts, then blacklisted for further housing projects, the statement added.

Sisulu urged people over 70 still who were on housing waiting lists, but had not yet received their house, to contact the department.

Sisulu said there is a growing number of younger people receiving houses, leading them to believe that they could have passed the phase where those over 70 were still waiting for their houses.

Military veterans would also receive some of the 10,000 houses allocated to those who qualify by December 2009, Sisulu said.

The department has built 2.7 million houses so far, hoping to reach 2.8 million by March 2009, the end of the financial year.

"What we are most proud of is that from 2004 we have built 1.2 million houses. In other words, in just fours years we have provided shelter to more than 5 million people," Sisulu said.

Partnership with the private sector, nongovernmental organizations and banks has accelerated the housing delivery, she added.