The Department of Local Government and Housing has received a preliminary report on investigations into the Everton renewal project. The Everton Renewal Project is an Urban Renewal Project which is aimed at improving the urban landscape of the area and it involves many projects.
Gauteng Housing appointed Bahlodi Construction Consortium (Pty) Ltd to implement phase five of the Everton Renewal Project. The Consortium was constituted by an overall lead consultant and professional consultants. The obligations of the Consortium were to supervise the work to be done by various service providers in the implementation of the Everton Renewal Project.
The work included among others the following:
* supervision of service providers
* monitoring and overseeing the participation of service providers
* assessment of work performed
* certification or authentication of invoices presented by the service providers
* collation of information on the project
* monitoring and reporting progress on implementation
"As work on the project progressed, the then Gauteng Housing Department was dissatisfied with the performance of the consortium. The consortium's poor performance impacted negatively on the overall deliverables set by the department in respect of the Everton renewal project. The above state of affairs, led to the termination of the consortium's mandate on the project" said MEC for Local Government and Housing Kgaogelo Lekgoro.
"We engaged the services of a law firm to assist with the matter. A preliminary investigation by the lawyers established a number of questionable transactions. The lawyers recommended that a forensic audit be carried out in order to establish the full extent of possible loss and or damage suffered by the department. Acting on the advice we commissioned a forensic audit. We have received the report which confirms incorrect and irregular conduct on the part of the Consortium" said MEC Lekgoro.
"We have instructed the lawyers to act on the findings. Letters of demand have been served on the Consortium and its respective members. We are informed that the dispute may be referred for arbitration" said MEC Lekgoro.
For more information please contact:
Fred Mokoko
Cell: 082 447 8407
Tel: 011 355 4013
E-mail: fred.mokoko@gauteng.gov.za.
Issued by: Department of Local Government and Housing, Gauteng Provincial Government
2 October 2009
