Contractors halt work at R11bn Baic project

(Carin Smith, Fin24)
(Carin Smith, Fin24)

Major contractors at the R11 billion Baic motor plant being built at Coega in the Eastern Cape have halted work for more than a week owing to non-payment for work done.

The Industrial Development Corporation (IDC), which has a 35% stake in the project, this week confirmed the work stoppage, adding that there was an “impasse”.

“Baic SA is aware of a stalemate between the main contractor, Beijing Industrial Designing and Research Institute (BIDR), and subcontractors ... Baic SA is currently pursuing engagements with all parties involved to ensure that a consensus is reached,” said IDC spokesperson Mandla Mpangase.

BIDR is the project implementation agent for Baic SA.

Scribante commercial manager Craig Brown told City Press that his company was owed R40 million.

Bradley Smith, managing director of Ivor Smith Electrical, said they were owed about R2 million: “Baic SA ... had been paying us until things started to turn bad in August. We are told that BIDR overshot its budget and now Baic SA is refusing to give them more money,” said Smith.

A spokesperson for WBHO said they were owed millions of rands, while a spokesperson for Babakhane confirmed that work stopped at the plant last Friday. 

* Sign up to Fin24's top news in your inbox: SUBSCRIBE TO FIN24 NEWSLETTER

ZAR/USD
17.76
(-0.54)
ZAR/GBP
23.16
(-0.48)
ZAR/EUR
20.87
(-0.31)
ZAR/AUD
12.69
(-0.42)
ZAR/JPY
0.17
(-0.30)
Gold
2030.35
(+0.16)
Silver
28.25
(+0.44)
Platinum
973.02
(+1.07)
Brent Crude
44.49
(0.00)
Palladium
2182.00
(+0.01)
All Share
56757.73
(-1.56)
Top 40
52435.65
(-1.72)
Financial 15
9897.96
(+0.10)
Industrial 25
74671.49
(-1.98)
Resource 10
58948.78
(-1.89)
All JSE data delayed by at least 15 minutes morningstar logo
Company Snapshot
Voting Booth
Do you think it was a good idea for the government to approach the IMF for a $4.3 billion loan to fight Covid-19?
Please select an option Oops! Something went wrong, please try again later.
Results
Yes. We need the money.
11% - 941 votes
It depends on how the funds are used.
74% - 6274 votes
No. We should have gotten the loan elsewhere.
15% - 1289 votes
Vote