Limpopo contractor bonus 'abuse' - DA

2012-08-06 22:54
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Johannesburg - The Limpopo government's decision to grant a R12m contract increase to a contractor who failed to meet two deadlines was "flagrant abuse", the Democratic Alliance in the province said on Monday.

"This is a flagrant abuse of the state's coffers and it must be investigated," spokesperson Desiree van der Walt said in a statement.

The Star newspaper reported that a variation order had increased from R41m to R53m the budget for the Seshego residential project, which is being constructed by Steve Bosch's company Raesetja Property Developers, trading as Sizani Build It.

Van der Walt said the province's standing committee on public accounts needed to investigate all government tenders awarded to Bosch, who was "a well known benefactor of the ruling party".

"His political connections coupled with his questionable service delivery record are a clear indication that the ruling party will stop at nothing its ploy to enrich its cronies at the expense of the communities."

Earlier, The Star reported that Bosch had already received R43m of the value of his contract.

Minutes of a meeting held in May between the department, Sizani and the department also indicated that the materials used for the project were not SA Bureau of Standards approved.

Independent Newspapers previously reported that Bosch had quit construction on some units, for which his company had earned over R38m during the 2010/2011 financial year.

Bosch and the department did not respond to The Star's requests for comment.

Bosch is allegedly a benefactor of expelled African National Congress Youth League president Julius Malema and is believed to have business ties with Limpopo Premier Cassel Mathale.

Bosch also allegedly has ties with Limpopo's Co-Operative Governance MEC Clifford Motsepe and Limpopo ANC secretary Soviet Lekganyane.

The Limpopo government had not responded to requests for comment by Monday evening.

Read more on:    da  |  desiree van der walt  |  cassel mathale  |  polokwane  |  local government  |  government spending

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