Mkhwebane clears Mokonyane of ‘irregularly interfering’ in water projects

Former Water and Sanitation minister Nomvula Mokonyane has been cleared of accusations that she was irregularly involved in controversial water projects, some worth as much as R3.8 billion.

On Monday, Public Protector Busisiwe Mkhwebane released the findings of her investigation into several water projects, in which Mokonyane was alleged to have acted irregularly.

Projects investigated were:

• Repairing water infrastructure in the Mopani District Municipality (MDM), a project for which the budget escalated from R96.4 million to R502.6 million in three months.
• The raising of the Hazelmere Dam wall in KwaZulu-Natal, a project which was approved in 2011 with a budget of R91 million and is projected to cost R359 million at the date of this report, with no end date.
• The 36 kilometre pipeline between Craigieburn and Greytown in KZN.

The complaint was lodged by DA MP Leon Basson on 18 August 2016.

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Mkhwebane investigated whether the Lepelle Northern Water Board (LNW) irregularly awarded the contract for provision of water and sanitation services in the Mopani, Giyani project to LTE Consulting (Pty) without following legal procurement prescripts.

Investigators also probed if there was maladministration in the Department of Water and Sanitation (DWS) Nandoni-Nsami (Giyani) bulk pipeline project.

“A copy of the appointment letter dated 20 August 2014 from LNW to LTE was perused. The estimated period for the work to be completed was four years, thirteen months, and two weeks. The estimated amounts were: Giyani Water Works: R52 150 000 and Giyani Wastewater Works R38 800 000,” she said.

On 25 August 2014, Mkhwebane said, Mokonyane forwarded a letter to LNW which, inter alia, issued a directive to LNW, “… to intervene, with effect from 18 August 2014, on the Giyani Water and Waste Water treatment in order to restore water supply to the residents”.

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Letters showed that on 27 August 2014, LNW wrote to National Treasury informing them that they had been appointed as an implementing agent by the DWS.

“As such LNW had appointed LTE on deviation due to the emergency nature of the project. On 28 August 2014, LTE issued South Zambezi (Pty) LTD with an appointment letter for engineering and project management services,” she said.

The appointment was for an estimated cost of R2 211 425 000 for a period of five years.

Mkhwebane said LTE’s appointment was on a turnkey basis.

She explained:

“A turnkey solution or project means a type of a project that is constructed so that it can be sold or handed over to the owner as a complete product. LTE then undertook the entire responsibility from designs throughout completion of the project. Midiyavhathu Kennedy Tshivhase (LNW board chairperson at the time) further stated that at the time of the project, LNW did not have a panel of service providers when it was appointed by the DWS as an implementer in respect of the project. LNW used the DWS panel of service providers in which LTE Consulting was confirmed to be on category 6 of the panel of Professional Service Providers (PSP).”

Mkhwebane also cited the Auditor-General (AG) engineer’s report of July 2017. According to the report, LTE was charging rates that were above norm for the Department of Public Service and Administration (DPSA) and Department of Public Works (DPW).

“The AG report stated that the top rate for a consultant working at the level of a Director was R1 383/hour according to the DPSA scales and the top rate for a registered professional principal was R1 448 according to the DPW scales. LTE was claiming up to R3 500/hour. Due to the fact that this project was never placed on tender, LTE was allowed to charge any rate that they desired. This was not value for money, fair, equitable, competitive or cost-effective,” she said.

In the end Mkhwebane could not establish from the evidence that Mokonyane had given a direct instruction for LNW to award the project to LTE.

“It was the LNW officials who followed the procurement process to appoint LTE,” she said.

She also found the allegation that Mokonyane was involved in tender irregularities in the remaining three projects, were unsubstantiated.

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