The MEC for Local Government and Housing Kgaogelo Lekgoro has dismissed the report of the Star as baseless and without accuracy. “We are surprised that the journalist chose to present a genuine financial challenge which we all faced as government as a scandal. We are also surprised that when the journalist spoke to the contractor he accused the department of laying the blame for non delivery on the contractor. We are clear that the contractor has had challenges in the area caused by unsavoury actions by some protest groupings. These groups while protesting have, at times threatened those who work at that project,” said MEC Lekgoro.
“I asked for an explanation on this matter and I was informed that the department, in particular the accounting officer Mr Mongezi Mnyani, spoke to the contractors individually and as a group regarding the situation faced by the department.
Furthermore in the monthly meetings with the contractor, they were informed that they would have to adjust their work programme, such that they deliver completed top structures as opposed to the foundations that were laid. In total 156 slabs (Foundation) had been laid and there was no completed house that is occupied,” said MEC Lekgoro.
“There are payments which have been made to the contractor for foundations as opposed to the full amount to be paid for a completed structure. The department is not allowed to make payments for incomplete houses. Even on completion, houses have to be quality assured by the NHBRC before the final payment is made. Only approved houses are paid and those not approved should be repaired by the contractor using their own cost” said MEC Lekgoro.
“We have said on numerous occasions that we are committed to settle any obligations towards any of our service providers. Our responsibility is also of ensuring that all internal controls are complied with and that payments processed are supported by adequate supporting documents. All claims which do not meet the department’s requirements are rejected and reprocessed upon resolution of the reason for the initial rejection,” said MEC Lekgoro.
“In relation to FCI Build, the department is in possession of claims R1,9 million only. These relates to geotechnical variations which requires prior verification and approval by the Department’s Quality Assurance Unit, the Chief Financial Officer and the Deputy Director-General Sustainable Human Settlements before payments can be made. The department has paid FCI Build a total of R 17.7 million during the 2009/10 financial year and R6.7 million during April and May 2010. About R1,3 million of this amount paid from April this year is for Finetown,” said MEC Lekgoro.
“We have a revised work the schedule with the contractor and at the present moment the relations between the department and the contractor have not broken down at any rate. Work is continuing and where we have problems we communicate with all contractors. In this case we also acknowledge that the journalist misled the authorities of FCI Build to solicit information from them. Thus far we are satisfied with the issues surrounding this matter.”
For more information 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 June 2010
