'No maladministration' in IRT

2009-11-05 20:01

Cape Town - The increase in the cost of Cape Town's Integrated Rapid Transit (IRT) system was not due to maladministration, city Mayor Dan Plato said on Thursday.

"The problems that have arisen are due to inadequate project management and reporting of cost escalations," he said in a statement.

An independent forensic team had found no evidence of fraud. As soon as the problems had been identified, action was taken to rectify them.

A project team had been appointed under Mike Marsden, the city executive director of service delivery integration, Plato said.

The IRT had been reviewed to ensure the budget matched the project.

No burden on tax payers

"It must be stressed that no undue burden will be placed on the ratepayers of Cape Town as the IRT project will only spend money that is made available to the city through the Division of Revenue Act by national government," said Plato.

It was a joint project by the city and national government, the latter having supplied most of the funding.

Cape Town was committed to supplying a good transport system but needed to be careful with spending in the current tough economic climate.

The budget of the project has soared from the initial R1.3bn to an estimated R4.2bn for the first phase.

The IRT project is a key part of the city's preparations for the 2010 Soccer World Cup. It will involve busses on dedicated lanes on key routes across the city.

- SAPA