GIYANI: Water project initially valued at R502m, balloons to R2.7bn

The project launched by the president in 2014 ballooned to R2.7 billion as contracts were given to various companies.

President Jacob Zuma’s dream of bringing water to the drought-affected Limpopo is likely to remain a dream.

Read: LNW addressing Mopani water crisis

Three service providers, contracted to the multibillion-rand Giyani water project, ditched the project following a protracted payment tussle with Water and Sanitation Minister Nomvula Mokonyane.

In August last year, Vharanani Properties, owned by construction mogul David Mabilu, abandoned the emergency water project after the department could not pay the company R80 million.

Read: Clean running water for the community

Vharanani Properties was contracted by the Lepelle Northern Water, an agent for the national department of water and sanitation, to install a pipeline that would draw water from Nandoni Dam to the arid town of Giyani.

Three weeks ago, another company contracted to the project, South Zambezi, also abandoned the R2.7 billion project after Lepelle failed to pay the company a service fee of R40 million.

Read: Millions for water upgrade

South Zambezi was contracted to supervise the Giyani project. The company is run and owned by Midrand businessperson Simbi Phiri. The project launched by the president in 2014 ballooned to R2.7 billion as contracts were given to various companies.

For the full article on @TheCitizen website, click on: Limpopo water project initially valued at R502m, balloons to R2.7bn