RDP houses listed as having been completed sometimes do not exist, Public Protector Thuli Madonsela said on Thursday.
"People received letters that their houses have been completed and [are] ready, only to find that no such a house existed, or that it was given to someone else," she said at a meeting with residents in Klerksdorp.
Madonsela was in the North West on Thursday as part of a systematic investigation into complaints about RDP houses and minibus taxis across the country.
She has already been to KwaZulu-Natal, the Eastern Cape and the Free State, and would visit Limpopo next week.
Madonsela said Klerksdorp residents had made serious allegations against officials responsible for housing. A mayoral committee member was allegedly involved in the illegal sale of houses.
"The emerging factor here is what should be the role of councillors in the procurement and provision of houses... whether they should be involved directly or be mediators?"
Madonsela would hold a meeting in Mahikeng on Friday.