Madonsela: Gauteng dept mismanaged water project

2014-12-18 21:02
(Picture: AFP)

(Picture: AFP)

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Johannesburg - The Gauteng department of infrastructure development mismanaged public funds in the Suikersbosrand water project, the public protector said in a report released on Thursday.

The report, titled "Six Years and Counting", is a result of an investigation of the department's administration of the Suikerbosrand Project.

The project, which commenced in 2008, involved the upgrading of the water supply to the nature reserve in the area at a cost of R8 657 745.

"The department failed in its duty of overseeing the smooth running of the project, thus causing delay in the completion of the project," said Thuli Madonsela.

"During the project, there was mismanagement of state funds and disregard for procurement policies, treasury regulations and the Public Finance Management Act."

A complaint was laid against the department by Nathaniel Letlape, a small business contractor based in Leondale.

Letlape alleged that the main contractor, Moteko Construction Cost Consultants JV, which was contracted to upgrade the water supply to the Suikerbosrand Nature Reserve, was improperly appointed in contravention of a fair, transparent and cost-effective procurement process.

Moteko was appointed by way of an Instruction to Perform Work (IPW) in terms of treasury regulations, Madonsela said.

"The department's failure to open the Suikerbosrand project to a fair, equitable, transparent, competitive and cost-effective procurement process and opting for an IPW with a view to fast track service delivery was not viable and cannot be justified."

Contrary to what was anticipated by the IPW, the project has been plagued by delays.

"The project remains incomplete six years since it was commenced on 17 November 2008 and was supposed to be completed on 20 May 2009."

Madonsela found that the department mismanaged the project, and owed Letlape for services rendered on the project.

Letlape also incurred penalties due to delays to the project, which were not caused by him.

Madonsela's recommendations were that the head of the department should ensure that the project is finalised within three months, ensure appropriate action is taken against those officials responsible for the delay in completion of the project and improper conduct associated therein.

Letlape should be paid all monies due to his company within 90 days from the date of the final report.

"The monies owed to be verified in consultation with the complainant and Moteko must be paid in tranches. The first payment must be made within 30 days from the date of this report."

Read more on:    thuli madonsela  |  johannesburg  |  service delivery

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