JDA ends contracts worth R244m
THE JOBURG Development Agency (JDA) has terminated service provider contracts valued at about R244 million.
The agency said the decision was prompted by project delays and poor workmanship.
About R88.5m of the R244m had already been spent by the contractors in question, it said.
The process of appointing replacement contractors for the projects was under way, with most projects expected to resume in this financial year.
Development Planning MMC Belinda Echeozonjoku said she was concerned at the project delays and poor quality of work from some of the JDA contractors, lamenting the impact this has had on communities.
“Non-performing contractors not only cause unnecessary delays to much-needed community projects but also hinder people the opportunity to enjoy basic services,” she said.
“I have been consistent in calling for contractors that fail to deliver projects on time and hold the city to ransom to have their contracts terminated,” Echeozonjoku said.
On a recent oversight visit to Diepsloot and Blairgowrie to inspect projects that have been delayed by poor-performing contractors, Echeozonjoku said she saw first-hand the shocking quality of some of the workmanship.
She said she had confidence in the new JDA board and senior management on the work they were undertaking to turn the entity around.
“Most of the issues at JDA are caused by the lack of planning and organisational constraints. But I am happy that the new board, acting CEO and senior management are aware of the problems at the entity and are putting systems in place to deal with such problems,” she said.
The agency said its management team had introduced more stringent due diligence processes around the appointment of contractors, making it compulsory for each recommended contractor to submit certain documents and confirm liquidity before an award is made.
JDA acting chief executive Siyabonga Genu said the agency had been plagued by instability in the recent past which had impacted performance but that management was confident that things were changing for the better.
“We have developed a consolidated procurement plan that is being tracked weekly by myself, as the acting CEO. We have also started talking around a long-term plan to introduce an e-tender process to create efficiencies and transparency. The planning for the next financial year has already started and we are optimistic that the current interventions will be evident,” Genu said.
Echeozonjoku said it was unfortunate that the situation had to get to this point, as these projects were supposed to assist the city in getting the basics right: providing good road infrastructure, access to open spaces and access to health-care facilities.