SIU declares Talana hostel contract fraudulent
Just over a year after Tzaneen's Talana Hostel saga began, the Special Investigating Unit (SIU) has concluded its investigation into the R15.3 million tender awarded by the Limpopo Provincial Government for the construction of 192 transitional residential areas.
According to the SIU investigation, the tender was fraudulently obtained. The appointed service provider, Aventine Group CC, allegedly made misrepresentations and forged documents of industry experts with no links to the company to influence the direction of the bid.
The contract came into being after Limpopo COGSTHA identified Talana Hostel and Burgersfort Extension 10, to be densely populated informal settlements in the province which made it difficult to observe social distancing as per Covid-19 regulations. With the aim of reducing the spread of the Covid-19 virus government made the two settlements priority and looked build temporary shelters.
The investigation revealed that COGHSTA appointed an implementing agent, the Housing Development Agency (“HDA”) for the establishment of transitional residential areas. HDA then appointed a service provider, Aventino, to construct 192 units to sum of R12.3 million.
Also read: Letaba Herald investigates Talana saga
An extension of scope was approved to include the construction of 152 pit toilets and installation of three water tanks (10 000 litres), for an additional fee of R3 million, taking the contract value to R15.3 million. The service provider only managed to construct 40 shacks at Talana Hostel and submitted two invoices totalling over R2.5 million, which were paid between April and October 2020. In Burgersfort Ext.10 site, no structure was completed as there were only half build ones.
The story made national headlines after people learnt that each unit was about R64 000. At the time, the Sowetan reported that they had contacted a Vaal company that sells similar structures. “Nosipho Tshawe, an HR official at Tshepiso, said their two-room shacks were going for R6,450 while their one-room shelters went for R4,700 and they delivered nationwide,” according to Sowetan. The spokesman for SIU, Kaizer Kganyago, demands that the contractor pays back all the R15.3 million.
Meanwhile Premier Stanley Mathabatha, during an interview with SAfm stated that it has been an eye-opener and not to trust companies easily, even if they are accredited contractors. He still maintains that he only realised that the houses were shacks when he arrived in Tzaneen for the official unveiling of the project. Director of Aventine, Constance Mohlala was arrested by the Hawks in December and she is facing criminal charges for submitting fraudulent documents to influence the direction of a tender.
Kganyago, said the unit will demand that the contractor pays back all the R15.3 million.
