According to the Gauteng Department of Infrastructural Development, the R20 000 paid for each plumbing job is based on extensive market research and analysis to arrive at these rates.
This was revealed in the Gauteng Legislature after a question was submitted by Gauteng Shadow MEC for Health, Jack Bloom.
The department’s MEC, Jacob Mamabolo said the company was awarded a three-year maintenance contract through an open tender. They were appointed to do government hospitals’ plumbing and CCTV.
Kokwane Express was paid R20 000 for each of the 26 jobs done at hospitals and other government buildings in 2014 and 2015, which amounts to R520 000 in total, according to the maintenance report provided by the department.
These services range from repairing drainage systems, unblocking sewers, pumping basement water and fixing pipes. “The department negotiated rates with service providers who were successful in the tender. The rates were negotiated for a period of three years. All appointments made are in accordance with the rate negotiated and agreed on,” Mamabolo said.
The company’s managing director, John Sithole, however, disagreed that it charged R20 000 for each job. “It is an estimate, not an actual amount charged,” he said. Sithole said Kokwane Express believes in full transparency in its ethical practice.
Bloom called it a rip-off and remains unconvinced that a fair value rate was negotiated, citing that smaller jobs should have cost much less. “I suspect that the department is being grossly overcharged by many other companies for reasons that need to be investigated. Every effort should be made to negotiate the lowest rates for quality work at our hospitals and clinics,” said Bloom.
