Over R4 billion later still little progress with Giyani water

The project was supposed to provide 55 villages around Giyani with water which up to today, has not happened. The Giyani Bulk Water project started in August 2014 to refurbish the water and wastewater works. According to Thobekile Gwamanda of the SIU, on August 14, 2014, Thulani Majola from LTE, a consulting engineering company, attended an imbizo by the former Minister of Water and Sanitation to address the water challenges in Giyani.

“During a hearing held at the SIU offices, Majola confirmed that he was present at the imbizo and afterward met with the CEO of Lepelle Northern Water (LNW), Phineas Legodi, and proposed ideas that can resolve water challenges in Giyani. “On the following day, LTE representatives were present at the task team meeting called by the minister even though the task team was supposed to be attended by officials from Mopani District Municipality (MDM), the department, and Lepelle Northern Water (LNW) only.

Also read: Giyani water reticulation project at risk of stalling

“It should be noted that LTE was present at the task team meetings before LNW started with the supply chain management process to appoint a service provider for the project,” said Gwamanda. LTE was initially appointed on an emergency basis on August 20, 2014, for the repair and refurbishment of the water and wastewater works for the value of R90 150 000. The appointment was informed by a directive issued by the minister requesting LNW to intervene in an emergency about the water challenges in Giyani.

The minister indicated that Giyani Water Treatment Works should be completed by no later than the end of September 2014. “In September 2014, LNW appointed LTE for non-emergency works to the value of R2.2 billion excluding tax. “It should be noted that no procurement processes were followed when the project was extended from R90 150 000 to R2.2 billion. It must further be noted that the directive issued by the minister in August was not extended to include non-emergency projects.

Also read: Mashaba calls for arrests of people involved in Giyani Water Bulk project

“LNW thus extended the project to include non-emergency works increasing the amount from R90 150 000 to R2.2 billion, without authorisation from the department as there was no extension to the directive issued,” she added. Allegations were made that there was a reason to believe that the award was made to LTE without any competitive bidding or supply chain management (SCM) process having been followed; and that LTE is a professional services engineering firm, that rendered consultancy services to its clients and did not have the capacity or experience to execute or manage a ‘turnkey project’.

“The expert found that the costs had been inflated by the service provider by R893 422 148.17 (excluding VAT) on the above work that was reviewed.” On November 26, 2018, the SIU issued a summons in the High Court in Polokwane to have the contract to the value of R2.2 billion declared unconstitutional, invalid, and set aside. The quantum of the contract has subsequently been increased to R4.1 billion and the parties to the litigation are SIU versus LNW, LTE Consulting (Pty) Ltd, Khato Civils (Pty) Ltd, South Zambezi Engineering (Pty) Ltd, Mopani District Municipality (MDM, and the Department of Water and Sanitation.

Also read: Ramaphosa inspects Nandoni Water Project

On October 16, this year, the SIU applied for a trial date and filed an affidavit as part of that application. The SIU awaits directives from the acting judge president of the Polokwane High Court following the request by the SIU to allocate a preferential hearing date for the case. “MDM had to resort to the use of the old treatment plants that existed before it, the R77 million paid to Khato did not benefit the community, the Giyani water treatment works was officially opened by the former President in 2014 and R77 million was paid for the revitalisation of the wastewater treatment works,” she concluded.