Cape Argus

Public Works take companies to task

- MAYIBONGWE MAQHINA mayibongwe.maqhina@inl.co.za

THE Department of Public Works and Infrastruc­ture is pushing ahead with the blacklisti­ng of the two companies implicated in the controvers­ial Beitbridge border post fence.

The department has given the companies 14 days to respond as to why they should not be restricted from doing business with the state.

This was revealed by Minister Patricia de Lille in response to parliament­ary questions from DA MP Benedicta van Minnen. Van Minnen asked about progress made on recommenda­tions by the standing committee on public accounts (Scopa) to blacklist the principal contractor and the main contractor from doing business with the state.

She also asked why there were still a number of contracts in place with the two companies.

In March, De Lille issued a directive to the department to appoint a service provider to use an emergency procuremen­t process to erect the border fence at the Beitbridge border post.

However, an investigat­ion found that the fence cost R40.4 million, which consisted of a R37.1m payment to the contractor and R3.25m to a profession­al agent.

It was overpriced by R14m and may have been exceeded by R17m.

The investigat­ion also revealed a series of procuremen­t and other irregulari­ties, including R21.8m upfront payment to the contractor and R1.8m to the principal agent when constructi­on had not started. The department was found to have failed to test the market to determine the reasonable contractor and pricing.

The report had recommende­d that the department lay criminal charges against the contractor and principal agent and identified officials for misreprese­ntation to justify payments.

In her written response, De Lille said the blacklisti­ng of the two companies was brought to the department’s restrictio­n committee and authority (RCAA) last August. De Lille also said the department had not identified any justifiabl­e grounds to terminate existing contracts with the two companies as they were duly awarded.

“However, the department is in the process of reviewing these contracts though its internal audit unit.

“The department is further seeking legal advice as to whether the conduct of the respective companies in relation to the Beitbridge contract constitute­s sufficient grounds to seek terminatio­n of their remaining contracts with the department.”

 ?? TIMOTHY BERNARD African News Agency (ANA) ?? COMPANIES implicated in the Beitbridge border post fence inquiry have been given two weeks to respond to questions posed by the Department of Public Works. |
TIMOTHY BERNARD African News Agency (ANA) COMPANIES implicated in the Beitbridge border post fence inquiry have been given two weeks to respond to questions posed by the Department of Public Works. |

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