George Municipality says it's struggling to recover money from developer involved in building collapse
Ntuthuzelo Nene 5 May 2025 | 11:46 George building collapse
George Municipality
Over 100 emergency and disaster personnel from various municipalities are on site to locate those still unaccounted for after a building collapsed in George on 6 May 2024, trapping construction workers. Picture: George Municipality
CAPE TOWN - The George Municipality said it was struggling to recover money owed to it by the company in charge of the land and the development of the collapsed five-storey building in the town last year.
Tuesday marks a year since 34 people were killed and 28 others injured when the 42-unit block of flats being built caved in.
The main developer of the multi-storey apartment block is Neo Victoria Developments.
It later came to light that it had contracted another company, Liatel Developments, that built a structure which was not designed to support the weight of the building.
George municipal manager, Godfrey Louw, told the Western Cape portfolio committee on infrastructure that the municipality spent more than R9 million during the 11-day rescue and recovery operation.
Louw said it's been a tedious process trying to recoup their money."The committee might not know, but this Neo Victoria company has been liquidated in December last year. So now we are sitting with a shell company, and obviously the municipality needs to recover its costs."
He said they've sought legal advice on the matter.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
IOL News
3 days ago
- IOL News
Driving licence printing machine fixed but huge backlogs remain
The Department of Transport has repaired the driving licence card printing machine after months of downtime, but a significant backlog of unprinted cards remains. Image: File Millions have been spent on repairing and maintaining the driving licence card printing machine. The Department of Transport announced earlier last month that the driving licence printing machine was fixed and operations have resumed. The machine had been inoperative since February 5, resulting in a backlog of 747,748 unprinted cards. To reduce the backlog, the Department of Transport's Driving Licence Card Agency extended the working hours of its staff members. In light of this, in a parliamentary question and reply, Rise Mzansi leader Songezo Zibi asked Transport Minister Barbara Creecy about the number of times the machine broke down and how much it cost to repair it. 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 ✕ Zibi then asked how many employees it takes to operate the machine and how much overtime pay has been paid to employees due to lost printing time because of machine breakdowns. Zibi also asked Creecy if there was progress in acquiring a new card machine. Creecy said the backlog of driving licences as of May 15 was estimated at 733,000 cards. Creecy revealed the machine's major breakdowns in the past financial year are as follows: 2022/23 - 26 working days 2023/24 - 48 working days 2024/25 - 17 working days 2025/26 - 38 working days Over the same period, repairs and maintenance costs: 2022/23 - R9,267,862,33 2023/24 - R1,651,772,57 2024/25 - R544,747,64 2025/26 - R624,988,10 (to date) Overtime payment, over the last few financial years, has been: 2022/23 - R1,435,376,79 2023/24 - R1,608,102,52 2024/25 - R1,351,473,78 2025/26 - R0,00 Creecy said it takes four people to operate the machine. About progress made with the process to acquire a new driving licence card printing machine, Creecy said: 'The Minister has directed that a declaratory order be sought from a competent court on the tender to acquire a new machine, in order to ensure that no further irregular expenditure occurs.'
The Citizen
5 days ago
- The Citizen
Three GNT execs suspended
On Tuesday, the financially bleeding company was forced to pay R9 million of the missing money. Widows of former Great North Transport employees join affected former and current employees to picket outside of the Office of the Limpopo Premier in demand of the implementation of recommendations made in an investigation regarding the whereabouts of lost pension funds. Picture: Supplied Limpopo Great North Transport (GNT) has placed its chief executive officer (CEO), Dr Matata Mokoele, chief operations officer (COO), Ms Mahlako Mogoshoane, and chief finance officer (CFO), Nazeem Essa, on precautionary suspension. The organisation is a subsidiary of the Limpopo Department of Economic Development, Environment and Tourism (LEDET). The trio were suspended on Tuesday following allegations of financial misconduct amounting to R9 million. It is alleged that medical aid and pension funds belonging to more than 280 employees have not been paid for a considerable number of years. On Tuesday, the financially bleeding company was forced to pay R9 million of the missing money. The agency confirmed on Friday that the trio had been suspended with pay, pending the outcome of internal investigations. 'This resolution was taken in response to serious concerns related to financial governance, operational delivery, and executive accountability. 'The suspensions are effective immediately and will remain in place for a period not exceeding three (3) months,' said the company. During this period, the Board said it will be engaging the shareholder, the Limpopo Economic Development Agency (LEDA), to provide strategic and operational support, including the secondment of interim leadership resources to ensure the continued delivery of essential public transport services. 'We appeal for cooperation and support from all stakeholders during this transitional period and will provide further updates as necessary,' said the board. ANC Youth League welcome decision The ANC Youth League in Limpopo commended the company for its action. Provincial secretary Phineas Sebola said the lack of pension payments has had a profound impact on retired and current employees, particularly those reliant on pensions for income. ALSO READ: Unpaid provident fund sparks protest by Great North Transport employees Some employees, he said, had unfortunately passed away before receiving their money they were owed. Sebola added that the company has a responsibility to rectify logistical issues in Limpopo and provide affordable transportation services. 'This viable transport mode for our people has been disconnected from the communities due to financial mismanagement. 'As the ANCYL, we view this as an opportunity for our parents, brothers, and sisters who worked for the company for years to receive justice and ultimately obtain what is due to them. 'In addition, the ANCYL advocates for the review of the board and urges the departments responsible to consider dissolving the board and bringing a new structure dominated by young people to bring life in GNT. 'It is in our view that the board has not been doing its work efficiently. Instead, it is now shifting the problem to senior executives. 'We believe that older members may be experiencing diminishing returns in terms of their capacity, leading to ineffective governance of our institutions or companies. 'The inclusion of young people will bring fresh perspectives and energetic engagement to the table, offsetting potential fatigue among older members and facilitating the efficient operation of the company,' Sebola explained. DA lay charges On Monday the DA, the third biggest political party in Limpopo after the EFF and the ANC, laid criminal charged at the Polokwane police station against LEDET and LEDA. This followed years of complaints over unpaid pension fund and medical aid payments to GNT employees. 'The board and executive management of LEDA, as the sole shareholder of GNT, bear statutory and fiduciary oversight responsibilities for GNT's operations and financial conduct. They, too, must be held accountable and face consequences. 'Unpaid contributions for pension fund schemes now total R6.78 million, affecting 945 employees. In some cases, employee membership has already been suspended. 'If a partial payment of R1 million is not made by the end of May, all employee memberships will be suspended. 'If the default continues, employees risk permanently losing their pension benefits. 'Medical unpaid contributions totalled R3.21 million, affecting 247 employees. All medical aid coverage for GNT employees has been suspended, meaning employees cannot access healthcare services unless they pay out of pocket,' said Jacques Smalle, Member of the Provincial Legislature in Lebowakgomo. On Friday, LEDA told The Citizen that it has settled the bill and paid an amount of R9 million towards the employees' pension fund and medical aid contributions. NOW READ: R15m in road unworthiness fines for Great North Transport
IOL News
5 days ago
- IOL News
Collapsing buildings: lapses in safety and security in the construction sector
The Tongaat Mall Image: File ACCORDING to Jomo Sibiya, Deputy of Employment and Labour, the South African construction sector has one of the highest accident rates in the country, with 1.5 to two fatalities per week, and is classified as one of the top four high-risk industries in the country. Building collapses occur when a structure fails and partially or fully collapses, endangering human lives and health. This can result from various factors, including structural failures, poor construction practices, and external forces like fires or earthquakes. The effects of a building collapse can be devastating, leading to loss of life, injuries, property damage, and significant economic and social disruption. On May 6, 2024, the Neo Victoria project, a residential building under construction, collapsed in George, Western Cape, killing 34 workers and injuring 28. The George Building Collapse was a tragic disaster and one of the worse in the South African construction industry. President Ramaphosa extended his condolences: 'We know that many of you are in grief. There's no worse grief than people who have lost their loved ones… We are here to give comfort, and there will be a need for… psychosocial support. And when that is the case, we will have people who will give that support … There will be assistance for those who are in hospital to be well treated, there will be assistance for those who have to be buried. There will also be compensation that will have to go through the channels of our various institutions.' 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 ✕ Ad loading Most of the deceased were foreign undocumented labourers from Mozambique, Malawi and Zimbabwe. To date, there is no record of their names. After all, in South Africa, undocumented migrant labourers are expendable. The Minister of Human Settlements, Thembi Simelane presented a report by the National Home Builders Registration Council (NHBRC) to the Portfolio Committee on Human Settlements on 4 April 2025: 'It's a report which indicates the failure of our systems at the NHBRC … There was a lapse of enrolment requirements which were overlooked by our internal staff at the council …There was a lapse …with regard to the structural engineering and drawings and the details which were not fully disclosed as they should have been… We also had missing detailed material information about the construction… The contractor cut corners. Our system enabled him to cut corners by not following our standard operating procedures and even approving without the fulfilment of all the necessary attachments that needed to be done.' There were also design flaws, poor quality concrete, and safety alerts were overlooked. Four construction workers lost their lives and one survived following the collapse of an embankment at a construction site in Zen Drive, Ballito, on 18 May 2024. On 29 March 2025, two workers employed by a construction firm were digging a trench on Canehaven Drive, Phoenix, when a retaining wall and sand and metal reinforcement fell on them. It was established that the deceased were Mozambican nationals. On November 19, 2013, a section of the second floor of the partly completed Tongaat Mall collapsed, killing two and injuring 29 construction workers. Construction of the Tongaat Mall had commenced without the building plans being approved. Gralio Precast, the company developing the mall, was a beneficiary of many tenders from the eThekwini Metro. A commission of inquiry was appointed by the Department of Labour and chaired by Inspector Phumudzo Maphaha to investigate this collapse. The investigation found that the collapse was due to substandard construction work and several contraventions of the Occupational Health and Safety Act and Construction Regulations which included the following: poor plan design; the contractor's failure to comply with regulations; contraventions of the Safety and Health regulation; missing steels and columns; lack of supervision on site; an important site diary was missing; lack of health and safety audits; and inappropriate building materials (cement imported from Pakistan did not meet South African Bureau of Standards requirements). These reasons can be attributed to a reckless, calculated strategy by the developer to save construction costs and compromise the safety of onsite workers. For example, a beam with insufficient steel bars may have led to the collapse. According to an engineer, the beam should have had 19 steel bars. Also, some of the concrete utilised was less than a third of the required strength. In May 2016, the then Minister of Labour Mildred Oliphant acknowledged that while there was clear evidence of impropriety, she was not in a position to give the names of people and companies implicated. Instead, she handed over the inquiry results to the National Prosecuting Authority (NPA) in KwaZulu-Natal for further investigation and action. However, as reported by News 24, eight years on in May 2024, Natasha Ramkissoon-Kara, spokesperson for the NPA, said that 'Investigations are ongoing, and we are therefore not in a position yet to make any decision in respect of the matter.' However, it is a common cause that the NPA has a poor history of initiating prosecutions and achieving convictions in high-profile cases involving malfeasance. This delay by the NPA in investigating and prosecuting those implicated in deliberately compromising safety in the construction sector has national implications. An analysis conducted for the South African Institute of Occupational Health (SAIOSH) in May 2024 by Professor of Construction Management at Nelson Mandela University, John Smallwood, emphasised the ongoing safety issues and the need for extensive measures to enhance the industry's health and safety practices. According to Professor of Smallwood: 'There is no such thing as an accident … noting that what are traditionally termed accidents are often the result of management failures …Workers exposed to hazards and risks are people with a body, mind, and soul, who invariably have a partner, a family, and are derived from a community.' He emphasised that unforeseen accidents are often 'planned by default' through actions or inactions, highlighting the necessity for a change in the industry's safety approach. Lennie Samuel, a senior inspector and forensic investigator at the Department of Labour, similarly contended that the absence of oversight and management failures is the main reason for collapsing buildings. The causes of most of the incidents examined could be traced to senior management, who only fix the immediate causes or symptoms rather than the underlying issues. Regrettably, the outcomes frequently result in injuries, disabilities, deaths and collapses. A comprehensive strategy is essential to decrease accidents in the South African construction sector, including training, recognising hazards, appropriate tools and processes, and implementing robust site management practices and a robust safety culture. This involves complying with applicable regulations, fostering effective communication, and promoting employee safety, health and welfare. Professor Brij Maharaj Image: File Professor Brij Maharaj is a geography professor at UKZN. He writes in his personal capacity. ** The views expressed do not necessarily reflect the views of IOL or Independent Media. THE POST
