Metro economics boss questions audit report
The Nelson Mandela Bay municipality’s economic development boss, Anele Qaba, has questioned the credibility of the audit report compiled by JK Structures and Finecorp, saying the companies are trying to pass the buck when they were ultimately responsible for the management of the project.
“Yes, there are allegations in their report that there were companies who were paid double or triple,” he said.
“However, I am concerned that we have not received the response from the two companies that they had sub-contracted or signed a cession agreement with.
“Indeed, the SMME leadership recommended the two other companies to be subcontracted and both main contractors agreed to that.
“It must be noted that the recommendation came after the two companies indicated that they would prefer not to deal with SMMEs on the ground due to dynamics on issues relating to forums.
“They then recommended that they work with other companies who would work on the ground with SMMEs.”
Qaba said JK Structures and Finecorp had cancelled, at the last minute, a meeting for all parties to discuss their report.
“They were expected, and are still expected, to come to the meetings arranged in which issues of this nature could be discussed and clarity sought.
“However, the two main contractors confirmed the meetings and cancelled at the last minute.
“I would especially love to get the response from both companies in terms of the allegations made.
“We, however, appreciate that at long last there is a draft report submitted, further deliberations on it will then be undertaken.
“I have made another request for the companies to meet with [the municipality] ASAP to discuss the content of the report received, interrogate it and ask all the necessary questions to develop a final report for council.”
He said the two main contractors must account as the contract was with them. “Their letter of appointment and the cession agreement is quite clear in terms of their role.
“The payment to sub-contractors was released on the instruction by both companies that it should be released.”