T he Democratic Alliance (DA) has vowed to approach the Office of the Public Protector to probe the Department of Social Development’s allegedly abandoned R100 million Seshego Treatment Centre project.
Reportedly the centre was supposed to have been completed in 2011 yet the department seems to have turned a blind eye on the project which has already cost Government around R96 million in taxpayers’ money. It is alleged that the department had handed over the project to the contractor in April 2010 with the expectation of completion in October 2011. However, extension was granted for six months due to underground services that had to be executed before the construction could resume.
The findings were revealed by DA Spokesperson on Social Development, Suzan Phala in a media statement issued after an alleged oversight visit to the centre by the DA officials last Thursday.
“The grass is growing on the pavements, the ceiling is peeling off, some offices have been furbished with new furniture and there is water in the swimming pool. The failure of the department to complete the project in time and its negligence has seen new infrastructure for the people of Limpopo turned into a dilapidated, decrepit facility before anyone could use it,” Phala stated.
The original contract value of the project was R96 million but due to the unnecessary extensions increased to R100 million and to date is standing at R107 million while the centre is still incomplete and remains abandoned, Phala explained.
Completion was delayed and revised more than four times due to late payments, contractual disputes and handing over the project to other sub-contractors and the Independent Development Trust (IDT), according to the statement.
She added that despite the delay, the IDT allegedly paid the sub-contractors an additional R2 million in interest and escalation and another R5 million for the extension of time and costs.
“The unauthorised expenditure is currently standing at R10 million which was never budgeted for by the department in the 2015/16 financial year. It is alleged that the money was paid by the IDT to the contractors without the department’s approval and there were also claims that some sub-contractors were not paid,” she emphasised.
She further outlined that the tender for the project was re-advertised on 3 March 2017 and closed on 5 April and a further R4,3 million has been budgeted for this year for the newly appointed contractor to complete the centre.
Social Development Spokesperson Adele van der Linde said nothing has been abandoned and said they have appointed a new contractor to finish the project. She added that acting MEC, Phophi Ramathuba had said in the department’s budget speech at the Legislature in March that the Prevention of and Treatment for Substance Abuse Act of 2008 prescribes that each province must have at least one public treatment centre. Van der Linde quoted Ramathuba to have said: “Our people cannot wait any longer. We commit ourselves that we will work around the clock to ensure that the long awaited Seshego Treatment Centre will be functional by the end of the 2017/18 financial year. We have faced too many hurdles in making this much needed facility a reality. We are more than confident that we have now removed those hurdles.”
At the time of going to press the following response to our inquiry was received from Van der Linde: “The department was put under administration in November 2011 partly as a result of not able to meet its contractual obligations due to budgetary shortfalls experienced by the department. At that time the department was still part of the Department of Health called Department of Health and Social Development.
“The then appointed contractor Karen Kula Construction (Pty) Ltd was subsequently liquidated due to financial problems and could not proceed to finalise construction of the centre and the contract was cancelled in June 2016. The liquidator appointed the nominated sub-contractor to complete the project. The contract of the nominated liquidator was terminated in 2016 because of delays to complete the project. The contract was then re-advertised in 21 October 2016 and during evaluation of the bids, it was noted that the bids were non-responsive to specifications, which led to re-advertisement on 3 March 2017.
“The additional amount incurred to date is R4,3 million due to delays that were caused by underground services such as sewer pipes, water pipes and underground cabling that needed to be done before the contract start date. The new contractor, Masingita Properties No.2 (Pty) Ltd was appointed on 16 May 2017 and the site was due to start on 1 June but it was only officially handed over to the contractor on 6 June.
“An amount of R89,9 million was paid by the department to the service provider, however a further R10,8 million was paid by IDT to the service provider and this amount is still in dispute and being reconciled by IDT. This brings the total paid to the service provider to R100,7 million. The initial budget was R96,4 million and R15,6 million has been budgeted to complete the centre in the current financial year.”
Story: ENDY SENYATSI
>>endy@observer.co.za
