On Wednesday, 17 February, we had a meeting with the lawyers representing Moseme Construction and Kaulani Civils. Moseme Construction is a road construction company on site on the Sun City to Phokeng road. Kaulani Civils are on site on the Lichtenburg to Koster road.
Our meeting with their lawyers respectively was with regard to a possible settlement of the dispute we have against them. This meeting of Wednesday 17 February was requested by the two companies, and we agreed to that.
We agreed at that meeting that the case set down for 18 February, at the North West high court, would be postponed for a week so as to allow settlement negotiations to proceed unhindered.
On Thursday 19 February, our lawyers met MEC Mahlakeng Mahlakeng and some of the senior managers. This consultation agreed that the department’s program managers, together with the PriceWatershouseCoopers internal engineers, prepare a preliminary report.
The report set out in detail the value for money and quality of work in respect of all the tenders received by Kaulani Civils and Moseme Construction.
This past Monday, 22 February, we met Moseme Construction and after lengthy talks, there was consensus by both parties that:
* The Sun City to Phokeng road, which is one of the FIFA protocol routes and of international significance in view of its critical importance to the successful hosting of the 2010 FIFA Soccer World Cup by the province, the department should consider making an offer to Moseme Construction.
The offer is:
* For Moseme Construction to conclude the road project “on a without prejudice basis” pending finalisation of the investigation currently underway and undertaken by a number of state security agencies. Lawyers acting on behalf of the department in this matter have sent a letter to their counterparts, acting for Moseme Construction, informing them about our offer and position in this regard.
I need to reiterate that our offer to Moseme Construction should not be seen and or interpreted as an act of capitulation by the department. Our position arising from the dispute we have with regard to appointment of Moseme Construction for this project in particular is that the appointment was unlawful, fraudulent grossly disregarded government tender and procurement procedures.
We are very clear on that and the findings by PricewaterHouseCoopers have to date, not been disputed and or rebutted. As you are all aware, investigations into this matter and others related to the findings arising out of the forensic investigation by PricewaterHouseCoopers are now in the hands of our various law enforcement agencies. It is not for us to speculate how much time they require to wrap-up their investigations.
What about Kaulani Civils?
We have agreed that all cases pending by and against them should proceed and accordingly. We are back at the North West high court tomorrow, Thursday or Friday where matter against Kaulani Civils is expected to be heard. We have brought an urgent application wherein we seek and order removing Kaulani Civils from the construction site of Lichtenburg to Koster road.
Issued by: Department of Public Works, Roads and Transport, North West Provincial Government
24 February 2010
