Hired at R23m for 1.5km of road and a letter to prove it
ON AUGUST 1, 2013 municipal manager Zebo Tshetlho appointed a Limpopo-based construction company, Lebaka Construction JV Malerate Construction, for the rehabilitation of Dr Nelson Mandela Drive in Huhudi township outside Vryburg.
The contract was for a fixed amount of R 9.9 million inclusive of VAT as well as contingency and escalation costs.
The municipality handed over the site to Lebaka on August 14 after agreeing on terms. Lebaka also committed itself to a surety of guarantee in the form of a bank transfer of an approved insurance company for an amount of R993 279.60.
It also took out a common law liability insurance of not less than R1m, if it fails to complete the job.
And it submitted a certificate of good standing from the Workmen’s Compensation Commissioner and supplied the municipality with its health and safety plan.
The municipality made the appointment following the recommendation of STK Consulting Engineers. The consulting engineers drew up the planning for the rehabilitation of the 1.5km road. Dr Nelson Mandela Drive, according to the plan, needed paving, storm water drainage and curbs.
The road begins from the N8, which is one of the entry points to Huhudi from Vryburg, and it stretches to the gravesite where ANC stalwart and Mandela’s former secretary Dr Ruth Mompati was laid to rest.
The rehabilitation of the road was scheduled for six months – ending in February last year. In April, the construction was granted an extension after they cited that rains had delayed the rehabil- itation. It was granted.
Controversy, however, surfaced when the auditor-general (AG) revealed that the letter of appointment of Lebaka Construction JV Malerate Construction was actually for R23m.
The AG in his findings said it was stated in their letter of appointment. He discovered the letter during their audit into the affairs of the municipality. The AG found that complete documents regarding this tender could not be found.
Tshetlho had disputed it saying R23m was “highly inaccurate”.
Lawrence Phasha of Lebaka Malerate Construction said his company was paid only R9m. However, the AG found that vital documents could not be found.
The AG made similar findings against various other companies. Another company was given a R1.8m tender just to do road marking on a 300m stretch – not far from Dr Nelson Mandela Drive. The AG also found no supporting documents for this tender.
Tshetlho said he was unaware that a criminal case had been opened against him and other council officials.