Masama water project shrouded in yet more controversy
● WUC requests direct payment to suppliers ● Contractors accuse WUC for flouting tender procedures
Like a monkey on a smoker’s back, controversy stubbornly refuses to let go of the much-talked about P900 million Masama/Mmamashia water pipeline project.
This tender has been shrouded in controversy from the word go. Now, a document passed to Mmegi shows Water Utilities Corporation (WUC) flouting tender procedures by funding suppliers using government money.
It is the obligation of the contractor to use his own resources or finance his own suppliers, but not so with this controversial project.
For instance, on June 17, 2020 WUC chief executive officer (CEO) Gaselemogwe Senai sent an email, Ref WUC 1/3/1-1, to the Permanent Secretary in the Ministry of Land Management, Water and Sanitation Services requesting upfront payments for South African suppliers for commencement of manufacturing pipes and associated fittings for the project.
The payment is for the design and construction of approximately 100KM long transmission pipeline and associated works from Masama Wellfield to Mmamashia Water Treatment Plant – Tender No. WUC 016 (2016).
“Reference is made to the contractor, Khato Civils/ South Zambezi/ Evolution Engineers JV’s letter dated 17 June 2020, Ref WUC 016 (2018) 1 KC/SZ/EE JV/ Direct Deposit, requesting direct payment to suppliers for long lead items for the project,” Senai wrote.
He said all contractual formalities between contractor and identified suppliers engaged to supply steal sheets, pipes and valves for the project, have been concluded.
He added that AecelorMittal South Africa has been appointed to supply steel sheets to be used in the manufacturing of the steel pipes, whilst, Africa Pipe Industries (Pty) Ltd has been engaged to supply pipes, spigot and socketed joints, as well as for carrying out internal and external coatings to the pipes and fittings. In addition, Drehmo Africa (Pty) Ltd has been engaged by the contractor to supply, deliver and commission valves.
“On the basis of the foregoing, the suppliers have requested upfront payment for them to commence manufacturing the pipes and associated fittings, and subsequent delivery to site. AecelorMittla South Africa has requested that it be paid $7, 551, 67 translating to BWP127,003, 990 for a 16, 818 tonne consignment, to commence manufacturing and supply of steel sheets, while Africa Pipe Industries (Pty) Ltd has requested that it be paid BWP77,124, 711, being 70% of costs for manufacturing of pipes, spigot and socketed joints, as well as internal and external coatings, and delivery of the materials to site,” Senai pleaded.
Furthermore, he said, Drehmo Africa (Pty) Ltd has requested $1,034, 139,41 (about P12,145, 792,68) for the supply, delivery and commissioning of valves. The Corporation therefore requested a disbursement of a total of USD1,034, 139,41 (about P12,145, 792,68) plus P204,128, 701 on expedited basis.
Construction industry players say what Senai was asking the ministry to do was not permissible in execution of government projects. “It is not the government’s responsibility to facilitate or pay the suppliers on behalf of the contractor. The obligation lies with the contractor. But this company always gets special treatment,” said a wellestablished contractor.
Another source at WUC said: “This is shocking and unusual. Corruption is now practised in a broad daylight. The so-called new dawn is a fraud. We know that some contractors are close to the ruling elite and curry favours with them because of their political connections”.
Last August, the MPs refused to authorise funding for this project after allegations of improper tendering. The 11th Parliament rejected the proposal shortly before it was dissolved. Then, 26 Members of Parliament (MPs) voted against the requested funds while 24 were in favour.
Earlier this year, the Ministry of Finance and Economic Development proposed that funds be availed by postponing “various strategic water supply, network rehabilitation and sanitation network including Lobatse Water Master Plan” in favour of this project.
“The envisaged Masama-Mmamashia pipeline will optimise the yield of eastern Botswana’s water resources in the region. Therefore, it is important that water from Masama Wellfields be availed first before Lobatse Water Master Plan can be implemented,” the draft estimates read.
Notes accompanying the draft estimates reflect that the Masama project is critical for water supply stability in the South.
“Shortfalls in water supply in the southern part of the country have been pervasive for the last five years, predominantly on account of an imbalance between water use and water resources resulting in demand outstripping supply with consequent supply outages. This is largely attributable to increasing population and urban sprawls giving rise to increased usage and sub-optimal infrastructural efficiencies resulting in supply side bottlenecks. The deficit will be compounded by the eminent and recurrent failure of Molatedi and Bokaa dams,” it reads.
The finance Ministry said the southern part of the country has largely been marginally water supplied.
“Some sources, particularly wellfields in the Molepolole cluster were over-deployed, way beyond their regenerative capacities, essentially rendering the supply situation more precarious.
“Some areas in the Moshupa/Thamaga cluster are currently supplied through water bowsers which is a costly emergency measure only deployed as a stopgap measure and not as a sustainable supply solution.
“The Ministry therefore requests for inclusion of the 100KM pipeline from Masama Wellfields to Mmamashia Treatment Plant as an effort to increase the flow of water from water sources in the northern to the southern part of the country. The envisaged Masama - Mmamashia pipeline is aimed at addressing the water deficit within the areas of Mochudi, Molepolole, Thamaga, Moshupa and Kanye.”