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KZN government takes action against underperforming contractors to combat corruption

KZN government takes action against underperforming contractors to combat corruption

IOL Newsa day ago
MEC Siboniso Duma inspecting the unfinished roadworks in the Cowie's Hill and New Germany area
Image: Supplied
The ongoing struggle against corruption and inefficiency in South Africa's public sector is taking a notable turn as the KwaZulu-Natal (KZN) department of Transport of Human Settlements moves to terminate contracts with underperforming contractors.
Recently, KZN's Public Works Department, led by MEC Martin Meyer, took a similar stance in d to tackling the persistent issues of poor performance among contractors by enforcing stricter measures against negligent contractors.
Public Works had six contractors blacklisted and warned others that if they saw the department as a means to make a quick buck, they must be prepared for their fate to be cemented with accountability.
The initiatives garnered the support of Organisation Undoing Tax Abuse (Outa), a prominent civil society organisation, which deems it a crucial step in enhancing accountability and transparency within government operations.
OUTA's CEO, Wayne Duvenage, said the moves had the potential to drastically reduce instances of corruption and maladministration.
"Yes, we do support this. In fact, we call for it to become more formalised and a requirement of government to use this as a way of tackling maladministration and the waste or corrupt use of national and municipal funds," Duvenage stated.
He called upon the National Treasury to engage with civil society to discuss improvements in effectiveness, highlighting the need for greater accountability in public service delivery.
Duvenage's comments came following the latest announcement from Transport and Human Settlements MEC, Siboniso Duma, regarding the termination of a road construction contract with a contractor due to prolonged delays and failure to meet contractual obligations.
The contract, valued at approximately R87.8 million, was intended for the rehabilitation of the main road P577-02, which connects Cowie's Hill to New Germany and served as a vital link to major highways.
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"This road was handed over to the contractor on 09 June 2023, with construction starting on 02 August 2023, and an initial completion date set for 24 May 2024," explained Ndabezinhle Sibiya, the MEC's spokesperson.
However, despite repeated extensions and ongoing oversight, the contractor failed to make substantial progress, prompting Duma and his department to take decisive action.
According to Sibiya, the MEC was inundated with complaints from the public regarding the construction delays spanning over 400 days since he took office.
After conducting regular inspections and weekly progress meetings with the contractor, the department concluded that termination was the only viable option.
"After inspecting the construction site, holding weekly progress meetings, and supporting the contractor, we have made the decision to terminate the contract," Sibiya stated.
The department was now in the process of re-measuring incomplete work and drafting a tender for a new contractor to take over.
As the KZN government takes this firm stance, MEC Duma reaffirmed his commitment to accountability, stating, "As an elected public representative, I need to be accountable to the people. A lot of blame, at times rightly so, has been placed at the feet of the department as the custodian of public transportation.
"However, the reality is that we have contractors who are failing to honour their contracts."
Duma further announced that punitive measures would be implemented to recover funds from contractors who abandon projects or fail to meet deadlines.
Such measures, he believed, were essential to ensure the integrity of public service delivery and restore public faith in government operations.
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KZN Department of Transport takes action: Multiple road contracts at risk of cancellation
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The KZN Department of Transport says it may cancel multiple road construction contracts due to poor performance by contractors. Image: Doctor Ngcobo / Independent Newspapers The KwaZulu-Natal Department of Transport has cancelled two contracts, one of which was valued at over R80 million, and is on the verge of cancelling several other contracts due to poor contractor performance. These contractors could also face penalties and recoveries for failed projects, the department warned. The department said 30 contracts are at risk of cancellation due to the poor performance of the awarded contractors. Transport MEC Siboniso Duma warned that the cancellation of contracts is just the beginning for contractors who fail to deliver. The department declined to comment on how much the contractors were paid for the two contracts which have been cancelled. It said it will first need to assess how much work has been done. 'We have projects that are underway, valued at R5 billion. What we want is value for money from those projects,' Duma stated. Duma confirmed the termination of a contract for the construction of road P577-02, which links Cowie's Hill and New Germany to the M13 and M19. The R87.8 million contract was awarded to a contractor on 9 June 2023, with work beginning on 2 August 2023. The project was due to be completed by 24 May 2024. However, more than 14 months later, Duma said the contractor had failed to make adequate progress. In his recent budget presentation, the MEC disclosed that over R3.8 billion would be allocated for constructing new infrastructure projects, while over R4.3 billion would be dedicated to maintaining the road network. Duma emphasised the importance of instituting recoveries against companies that fail to deliver. 'The failure is not just disruptive to service delivery; it is very costly to the department. If the contractor fails, we have to start the process of awarding all over again, which is time-consuming and expensive. That's why we must impose penalties and institute recoveries.' The department stated that the backlog in road infrastructure necessitates a strict approach towards contractors who do not complete projects on time. It believes that naming and shaming these contractors will serve as a deterrent for future contractors. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Currently, the department has a total of 39 active construction projects and 44 rehabilitation/resealing projects. 'There are 30 contractors from the Construction Industry Development Board (CIDB) grade 6 to grade 9 who are failing to complete capital projects on time across the province. Some projects have stalled, while others have been abandoned, with instances where site establishment has not even commenced. 'Engagements with these contractors have revealed that many face resource challenges, particularly cash flow issues. Other cited challenges include scope creep, which tends to increase once contractors are established on-site. Surprisingly, even long-established contractors with years of experience are among those failing to deliver,' the MEC stated. Duma added that these established contractors often take on too many projects simultaneously, which negatively impacts all their ongoing projects. When cash flow problems arise in one project, it affects other projects they are managing for the department. 'Contractors who fail to adhere to the new timelines will be terminated. The department has already identified contractors who are unlikely to complete their projects in the foreseeable future, necessitating their termination. 'Furthermore, the department will follow the necessary legal procedures to blacklist these contractors from future work with the department, which could last up to ten years. In addition, the department will take steps to recover funds due to the failures of these service providers. The MEC has directed that the supply chain management process be strengthened, including thorough vetting of contractors before hiring to ensure they have the requisite capacity. In some cases, contractors lack essential equipment, such as fleet (plant equipment),'Duma concluded. Professor Pundy Pillay of the Wits School of Governance stated that the government was justified in terminating contracts of individuals who are not performing. 'You can't have a situation where people are paid when they have not done the work. Everyone will take the money and not do the work,' he remarked. He added that the government complicates matters by not paying contractors on time. There should be a structured arrangement for payments, and these payments should be linked to the progress that has been made. Pillay expressed concerns about the recoveries threatened by the province, suggesting they are unlikely to yield results. 'That money spent on contractors is taxpayer money down the drain,' he concluded. Riona Gokool, the DA KZN spokesperson on Transport, raised concerns that the department has not been paying contractors on time, which has contributed to their negative performance. She said the department's failure to honour contractor payments has a devastating impact not only on small businesses and emerging contractors but also on job creation and community development, which are key pillars of its mandate. Mncedisi Maphisa, the chairperson of the Transport Portfolio Committee, said that the actions of the MEC have the committee's full support. 'Our job is to ensure service delivery, not to please service providers. If the MEC has done all he can to capacitate the contractor and that contractor still fails, we support the termination of such contracts. That must not only end in this field; all service providers in the department that are not performing should be dealt with,' he stated. THE MERCURY

KZN government takes action against underperforming contractors to combat corruption
KZN government takes action against underperforming contractors to combat corruption

IOL News

timea day ago

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KZN government takes action against underperforming contractors to combat corruption

MEC Siboniso Duma inspecting the unfinished roadworks in the Cowie's Hill and New Germany area Image: Supplied The ongoing struggle against corruption and inefficiency in South Africa's public sector is taking a notable turn as the KwaZulu-Natal (KZN) department of Transport of Human Settlements moves to terminate contracts with underperforming contractors. Recently, KZN's Public Works Department, led by MEC Martin Meyer, took a similar stance in d to tackling the persistent issues of poor performance among contractors by enforcing stricter measures against negligent contractors. Public Works had six contractors blacklisted and warned others that if they saw the department as a means to make a quick buck, they must be prepared for their fate to be cemented with accountability. The initiatives garnered the support of Organisation Undoing Tax Abuse (Outa), a prominent civil society organisation, which deems it a crucial step in enhancing accountability and transparency within government operations. OUTA's CEO, Wayne Duvenage, said the moves had the potential to drastically reduce instances of corruption and maladministration. "Yes, we do support this. In fact, we call for it to become more formalised and a requirement of government to use this as a way of tackling maladministration and the waste or corrupt use of national and municipal funds," Duvenage stated. He called upon the National Treasury to engage with civil society to discuss improvements in effectiveness, highlighting the need for greater accountability in public service delivery. Duvenage's comments came following the latest announcement from Transport and Human Settlements MEC, Siboniso Duma, regarding the termination of a road construction contract with a contractor due to prolonged delays and failure to meet contractual obligations. The contract, valued at approximately R87.8 million, was intended for the rehabilitation of the main road P577-02, which connects Cowie's Hill to New Germany and served as a vital link to major highways. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ "This road was handed over to the contractor on 09 June 2023, with construction starting on 02 August 2023, and an initial completion date set for 24 May 2024," explained Ndabezinhle Sibiya, the MEC's spokesperson. However, despite repeated extensions and ongoing oversight, the contractor failed to make substantial progress, prompting Duma and his department to take decisive action. According to Sibiya, the MEC was inundated with complaints from the public regarding the construction delays spanning over 400 days since he took office. After conducting regular inspections and weekly progress meetings with the contractor, the department concluded that termination was the only viable option. "After inspecting the construction site, holding weekly progress meetings, and supporting the contractor, we have made the decision to terminate the contract," Sibiya stated. The department was now in the process of re-measuring incomplete work and drafting a tender for a new contractor to take over. As the KZN government takes this firm stance, MEC Duma reaffirmed his commitment to accountability, stating, "As an elected public representative, I need to be accountable to the people. A lot of blame, at times rightly so, has been placed at the feet of the department as the custodian of public transportation. "However, the reality is that we have contractors who are failing to honour their contracts." Duma further announced that punitive measures would be implemented to recover funds from contractors who abandon projects or fail to meet deadlines. Such measures, he believed, were essential to ensure the integrity of public service delivery and restore public faith in government operations. DAILY NEWS

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MEC for Transport and Human Settlements, Siboniso Duma has terminated a road construction contract due to the contractor's failure to deliver, citing prolonged delays and public frustration. Image: SUPPLIED KwaZulu-Natal Transport MEC Siboniso Duma has terminated a road construction contract for failure to deliver, citing prolonged delays and public frustration. Duma has confirmed the termination of a contract for the construction of road P577-02, which links Cowie's Hill and New Germany to the M13 and M19. The R87.8 million contract was awarded to a contractor on 9 June 2023, with work beginning on 2 August 2023. The project was due to be completed by 24 May 2024. However, more than 14 months later, Duma said the contractor had failed to make adequate progress despite receiving support, oversight, and deadline extensions. 'We have taken a decision to terminate the contract,' Duma said during a media briefing at Inkosi Mhlabunzima Maphumulo House on Tuesday. 'In the past 400 days of his tenure, I have been receiving complaints from members of the public about prolonged construction.' Duma said a notice of intention to terminate the contract was issued on 4 July 2024, giving the contractor 14 days to show significant progress or face cancellation. 'Sadly, there has been no improvement,' he said. The provincial transport department has now begun re-assessing the incomplete works and will start drafting a new tender document to appoint a replacement contractor. In the interim, the current contractor is expected to continue work until formally removed and must ensure road safety before demobilising. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ Head of Department Siboniso Mbele has been tasked with fast-tracking the termination process. The department did not indicate how much had already been paid to the contractor. Duma said the department would no longer tolerate delays that inconvenience residents and undermine public trust. 'A lot of blame, at times rightly so, has been placed at the feet of the department,' he said. 'However, the reality is that we have contractors who are failing to honour their contracts.' He also announced that the department would begin recovering funds from contractors who abandon projects or fail to complete them on time. 'This is a demonstration of our firm commitment to ensure that taxpayers' money is not misused,' Duma said. The department has not named the contractor but confirmed that punitive measures would be implemented in future to prevent similar delays. THE MERCURY

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