The Star Early Edition

Hired at R23m for 1.5km of road and a letter to prove it

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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.

 ??  ?? SUBJECT OF DISPUTE: Dr Nelson Mandela Drive in Huhudi township cost the municipali­ty R23 million. The road is only 1.5km.
SUBJECT OF DISPUTE: Dr Nelson Mandela Drive in Huhudi township cost the municipali­ty R23 million. The road is only 1.5km.

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