Joburg wants firm to ac­count for mil­lions paid to it

Sowetan - - News - By Isaac Mahlangu

The com­pany ac­cused by Jo­han­nes­burg mayor Her­man Mashaba of hav­ing noth­ing to show for R66-mil­lion paid to it for con­struc­tion of a sub­sta­tion, has in­stead claimed to be owed a fur­ther R50-mil­lion.

Mashaba has come hard on Setheo En­gi­neer­ing which was awarded a R126-mil­lion ten­der two years ago to con­struct a sub-sta­tion in El­do­rado Park. There’s a face-brick struc­ture and four trans­form­ers – which ap­par­ently cost about R9-mil­lion each – at the pro­ject site. The trans­form­ers still needed to be connected be­fore the pro­ject was ap­par­ently de­serted weeks ago.

Setheo has in turn ac­cused Mashaba of de­lib­er­ately try­ing to “com­pletely de­stroy” it through his “un­re­lent­ing at­tacks and de­lib­er­ate efforts” to drag its name through the mud.

“The only point of agree­ment we have with the mayor is that in­deed Setheo En­gi­neer­ing was paid R66-mil­lion.

“How­ever, these were not for­ward pay­ments but rather mile­stone pay­ments for work done and equip­ment pur­chased,” Setheo’s spokesman and le­gal ad­vi­sor, Tavengwa Mukono, said.

Mashaba this week ac­cused Setheo of non-per­for­mance in an­other R44-mil­lion con­tract, this time for al­legedly fail­ing to work on the city’s Hope­field power sta­tion.

“The con­trac­tor has been paid R22-mil­lion by the city to date, de­spite this pay­ment al­ready be­ing made, only an es­ti­mated R1.5-mil­lion worth of work has been done,” Mashaba said.

Setheo claims lack of pay­ment by City Power was the main cause of the de­lays at the two projects.

“More im­por­tantly, to date the value of work car­ried out by Setheo En­gi­neer­ing on the El­do­rado sub­sta­tion is val­ued at over R116-mil­lion. This has been in­de­pen­dently ver­i­fied by qual­i­fied engi­neers.”

Mukono showed Sowe­tan City Power doc­u­ments and a re­port by con­sul­tants which showed that it was owed more than R50-mil­lion.

Two City Power pro­ject man­agers ap­peared in Jo­han­nes­burg Com­mer­cial Crimes Court on Mon­day af­ter­noon after their ar­rest by the Hawks. They were each granted R15 000 bail. Their ar­rests are re­lated to cor­rup­tion al­le­ga­tions re­lat­ing to the El­do­rado Park sub­sta­tion con­tract.


The four trans­form­ers and face brick struc­ture at the El­do­rado Park sub­sta­tion that is still not work­ing.

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