Contractors stripped of profits from R40.4 million Beitbridge tender

The Special Tribunal has ordered Caledon River Properties and Profteam CC to pay back the profits earned on a R40.4 million contract to erect the Beitbridge border fence.

The companies must within 30 days submit their audited financial statements to the Tribunal.

The tender was awarded by the Department of Public Works and Infrastructure (DPWI) as part of the Covid-19 emergency procurement in 2020. 

But, soon after the fence was erected, it started to fall apart, prompting the SIU to investigate the awarding of the contracts. 

The two contractors were jointly paid R21.8 million, of the R40.4 million, in advance by the DPWI for the construction of the razor mesh fence.

The SIU investigation, which uncovered a number of irregularities including the pre-payment, led to the DPWI being interdicted, prohibited and restrained from making further payments.

The R40.4-million contracts have since been reviewed and set aside by agreement between the parties. 

On Tuesday, the SIU and DPWI were ordered to appoint experts to compile a report detailing the Caledon River Properties and Profteam CC expenses and file it with the Special Tribunal. 

In the event of a dispute in profits, the parties have been ordered to approach the Special Tribunal for an appropriate order. 

Judge Lebogang Modiba ruled that it is just and equitable to apply the no profit and no loss principle in the matter. 

Regrettably, the biggest loser is the State and the public, she said. 

“They have been deprived of the variety of public, social and economic benefits that flow from a solid border track at the Beitbridge border and are saddled with a deficient border fence,” said Modiba.

“Further corrective measures lie in holding the officials who designed, approved and implemented the Beitbridge Border Fence Project and its related procurement process and those who failed to take the appropriate steps to enhance the integrity of the fence,” she added.

The SIU has also made disciplinary referrals to the DPWI against officials who designed, approved and implemented the Beitbridge border fence project. 

The outcome of the Special Tribunal order is a continuation of the implementation of the SIU investigation outcomes and consequence management to recover financial losses suffered by state institutions.

Compiled by Narissa Subramoney

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