Latest news with #PublicWorksandInfrastructure
IOL News
12 hours ago
- Business
- IOL News
Infrastructure delays cost R444. 7 million, reveals Minister Macpherson
Public Works and Infrastructure Minister Dean Macpherson says his department has instituted firm measures to hold non-performing contractors accountable. Image: Henk Kruger / Independent Newspapers Public Works and Infrastructure Minister Dean Macpherson has revealed that 57 infrastructure projects have incurred delays, leading to total cost overruns of R444.7 million over the past three years. The overruns are broken down as follows: R110.8 million in 2022/23, R64.3 million in 2023/24, and R269.6 million in 2024/25. This emerged when he was responding to parliamentary questions asked by EFF MP Sharon Letlape, who asked about the actions the department has taken to hold the contractors and implementing agents accountable, among other things. According to Macpherson, his department has instituted firm measures to hold non-performing contractors accountable. 'The defaulting contractors have been terminated or are in the process of being restricted, and legal letters of demand have been issued.' Contractors have had their contracts terminated for non-performance, and he named at least six. Legal proceedings have also been initiated against multiple service providers, including five he mentioned. 'These cases are currently with legal services and the Office of the State Attorney for recovery of financial damages,' he said. Macpherson said there was also blacklisting or recommendations for blacklisting of affected contractors. However, no implementing agent was directly responsible for the majority of project delays except for the Development Bank of Southern Africa (DBSA) in two instances. Macpherson said two contractors appointed under DBSA were terminated due to non-payment. The minister said the department has introduced several interventions to strengthen infrastructure delivery and avoid recurrence of inefficiencies. These included the establishment of internal units designed to professionalise and centralise oversight over planning and execution of infrastructure programmes, and a contractor development programme geared to improving the skills and capacity of emerging contractors to meet delivery standards. There is also a dedicated panel of pre-approved contractors that was being established to enable swift appointment where poor performance or termination occurs. Also in place were improved legal action and recovery processes. Macpherson also said stronger collaboration between legal services and the State Attorney was now yielding a pipeline of recovery litigation and summonses against defaulting contractors. The minister further said 38 construction projects had been delayed or halted in the past five years. 'The department is monitoring key construction projects that have experienced delays or have been halted. Notable examples include the Mamelodi Magistrate's Court, the Sarah Baartman Centre of Remembrance, and the Queenstown (Komani) police station.' He cited underperformance by certain contractors, which prompted the department to take corrective action, as the primary reasons for the delays.
IOL News
15 hours ago
- Business
- IOL News
Minister Macpherson reveals R444. 7m lost in infrastructure project delays
Public Works and Infrastructure Minister Dean Macpherson says his department has instituted firm measures to hold non-performing contractors accountable. Image: File Public Works and Infrastructure Minister Dean Macpherson has disclosed that 57 infrastructure projects experienced delays with total overruns to the tune of R444.7 million over the last three years. Macpherson detailed the breakdown of the overruns, which included R110.8m in 2022/23, R64.3m in 2023/24 and R269.6m in 2024/25. This emerged when he was responding to parliamentary questions asked by EFF MP Sharon Letlape, who asked about the actions the department has taken to hold the contractors and implementing agents accountable, among other things. According to Macpherson, his department has instituted firm measures to hold non-performing contractors accountable. Video Player is loading. 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Advertisement Next Stay Close ✕ Ad loading 'The defaulting contractors have been terminated or are in the process of being restricted, and legal letters of demand have been issued.' Contractors have had their contracts terminated for non-performance, and he named at least six. Legal proceedings have also been initiated against multiple service providers, including five he mentioned. 'These cases are currently with legal services and the Office of the State Attorney for recovery of financial damages,' he said. Macpherson said there was also blacklisting or recommendations for blacklisting of affected contractors. 'It is important to note that in some cases, delays were due to client departments failing to decant facilities or confirm budgets, and in certain cases, additional scope and unforeseeable conditions impacted delivery timelines.' However, no implementing agent was directly responsible for the majority of project delays except for the Development Bank of Southern Africa (DBSA) in two instances. Macpherson said two contractors appointed under DBSA were terminated due to non-payment. 'Recovery processes against DBSA for delays and financial damages are being prepared.' The minister said the department has introduced several interventions to strengthen infrastructure delivery and avoid recurrence of inefficiencies. These included the establishment of internal units designed to professionalise and centralise oversight over planning and execution of infrastructure programmes, and a contractor development programme geared to improving the skills and capacity of emerging contractors to meet delivery standards. There is also a dedicated panel of pre-approved contractors that was being established to enable swift appointment where poor performance or termination occurs. Also in place were improved legal action and recovery processes. Macpherson also said stronger collaboration between legal services and the State Attorney was now yielding a pipeline of recovery litigation and summonses against defaulting contractors. The minister further said 38 construction projects had been delayed or halted in the past five years. 'The department is monitoring key construction projects that have experienced delays or have been halted. Notable examples include the Mamelodi Magistrate's Court, the Sarah Baartman Centre of Remembrance, and the Queenstown (Komani) police station.' He cited underperformance by certain contractors, which prompted the department to take corrective action, as the primary reasons for the delays. 'In instances where contractors failed to meet their contractual obligations, contracts were terminated in accordance with provisions of the contract,' Macpherson said. Asked about measures his department has implemented to ensure that infrastructure projects were completed within agreed timelines, adhered to allocated budgets, and complied with established quality standards, Macpherson said they have implemented a suite of integrated controls that were aligned to the Infrastructure Delivery Management System, as well as promoted timely, cost-effective, and quality-assured infrastructure delivery. 'The department has instituted firm planning and monitoring mechanisms to prevent schedule overruns, including the enforcement of design-stage timelines through clear annual targets and timely approval of project definition reports and sketch plans,' he said, among other things. Macpherson also said project managers and consultants were held accountable for effective scope management and avoidance of unjustified variation orders. Internal controls have been strengthened to mitigate cost escalations linked to design deficiencies or poor planning. 'These measures are underpinned by routine project review meetings, monthly performance tracking, and robust consequence management to ensure accountability across the infrastructure value chain.'
IOL News
a day ago
- Business
- IOL News
R779 million spent on private security for state-owned properties over last five years
Public Works and Infrastructure Minister Dean Macpherson says there are 318 properties that are currently protected by private security companies. Image: Henk Kruger / Independent Newspapers Taxpayers have paid R779 million over the past five years to provide private security at state-owned properties across the country. This was disclosed by Public Works and Infrastructure Minister Dean Macpherson when he was responding to parliamentary questions posed by DA MP Edwin Bath. Macpherson said the expenditure on private security contracts was R140.9m in 2020/21, R124.6m the following year, R144.8m in 2022/23, R161.7m two years ago, and R199.9 in 2024/25. He also said the department has a total of 318 properties that are currently protected by private security companies. 'This is a constantly changing number due to properties that get vacated by tenants and thus require security services to prevent and respond to threats of illegal occupation. This number includes occupied and unoccupied properties located in various regions.' Macpherson further said there was a total of 248 security contracts in place. The top 10 costly private security contracts signed by the department are worth R81m and cover periods ranging from 24 to 36 months. He said none of the listed contracts exceeded the original contract value. 'The department works hard to ensure that security contracts remain within the awarded value.' Macpherson also said the anticipated implications on the continued protection of state-owned properties currently secured through private security contracts remain uncertain, as the proposed regulations by the Private Security Industry Regulatory Authority are yet to be finalised. 'Once these regulations are finalised, the department will align its procurement documentation for private security contracts to ensure compliance with the amended regulatory framework,' he said. Macpherson said the department has a total of 10,458 unutilised state-owned properties. 'This does not mean that each one can house a government organisation. They could be derelict, condemned, or unfit for human habitation.' He was responding to ATM leader Vuyo Zungula, who asked the reason for the justification for the government's use of private properties. Macpherson said the default position was to provide state-owned accommodation, but his department found itself relying more on private-leased accommodation because state-owned assets were not conducive to occupation. The department has spent R5.5 billion on private leases and R2.8 billion on maintenance during the 2024/25 financial year. He said the department has adopted asset optimisation strategies that sought to prioritise the development, refurbishment, and repurposing of state-owned properties to reduce the size of private leased properties. 'The minister has tightened controls on how and when leases are required as well as taking action against officials who collude to award leases that are needed,' said Macpherson, adding that he has referred the top 10 leases by value to the Special Investigating Unit for investigation to understand whether they were awarded correctly and if there was value for money. Asked by EF MP Blose Mazwikayise about unoccupied state properties, Macpherson said there were currently 1,743 that remained unoccupied and considered by his department as being under-utilised. 'Properties have been identified by the Department of Public Works and Infrastructure (DPWI) and submitted to the Department of Higher Education and Training (DHET) for analysis, including evaluation to determine suitability for student accommodation as per geographical needs and budget availability. 'This information is being awaited from DHET. On receipt of the above, DPWI will determine the most appropriate implementation model aligned to its asset optimisation strategy to support student accommodation requirements,' he said. [email protected]
IOL News
a day ago
- Business
- IOL News
Infrastructure backlog looms as KwaZulu-Natal Public Works halts projects for departments that owe it money
KwaZulu-Natal Public Works and Infrastructure MEC Martin Meyer's said his department will not carry out projects for other departments that owe it money. Image: Doctor Ngcobo/ Independent Media The KwaZulu-Natal Public Works and Infrastructure has announced that it will not carry out projects for sister departments until they pay money owed to the department. The move which may create an infrastructure backlog, particularly in Health and Education departments was announced by Public Works and Infrastructure MEC Martin Meyer in a sit-down interview on Tuesday. Explaining his department's decision, Meyer said it is a known policy in government and it was important for his department to apply it as it is affecting the department's financial standing in the Auditor-General's report. Meyer cited the sister departments' failure to pay his department as a reason for getting a qualified audit outcome this financial year. He said that as a result of the non-payment by sister departments, his department was failing to pay contractors on time- something that is beyond his control. "Inter-departmental accounts are still an intricate and thorny issue that is unsettling. This cannot be the norm and cannot continue as is. In the 2025/26 financial year, the department will only accept new projects requests from client departments by considering progress made on settlement of claims. This aims to ensure that the department does not continue with new projects where there is a backlog on unpaid claims,' said Myer. He said said the total value of outstanding payments to the department stood at a staggering R737.4 million. This severely hindered other financial obligations that must be honored by his department and he said records pointed to the fact that, there was a single client with an outstanding debt calculated in the region of R426,4 million, which accounted for 64% of the total debt. 'We are happy to say that as of the 10th of February 2025, through implemented measures, we have received over R71 million in payments, with more coming. We extend a word of appreciation to those who have paid us. To those who are yet to do so, we would encourage you to come forward and talk to us about a possible solution' said Meyer.
IOL News
6 days ago
- Politics
- IOL News
News you should know tonight: Top 5 stories you may have missed on August 7, 2025
Public Works and Infrastructure Minister Dean Macpherson has opened a criminal case at the Cape Town Police Station following shocking allegations of corruption and bribery involving senior officials at the Independent Development Trust (IDT). Good evening, IOL News family! It's Thursday, August 7, 2025, and it's time for a wrap of the biggest headlines making waves in South Africa and beyond. Don't forget to join the IOL WhatsApp Channel to stay in tune, informed, and in the know. Minister Macpherson opens criminal case in explosive IDT bribery scandal involving suspended CEO Public Works and Infrastructure Minister Dean Macpherson has opened a criminal case at the Cape Town Police Station following shocking allegations of corruption and bribery involving senior officials at the Independent Development Trust (IDT). To read on, click here. MultiChoice distances itself from Open Chats Podcast over racist comments MultiChoice has distanced itself from Open Chats Podcast following growing backlash over racist comments made by the hosts towards the Coloured community. To read on, click here. Red flag raised over US plan to dump high-risk deportees in Africa An immigration expert from Wits University, Professor Loren Landau has called on South Africa to speak out against the treatment of people outside the normal legal system, following a controversial deal that saw the United States deporting dangerous criminals to Eswatini. To read on, click here. Dehumanising people for social media clout: Bishop Dulton Adams on Open Chats podcast Leader of the African Christian Democratic Party (ACDP) in the Gauteng Provincial Legislature, Bishop Dulton Adams, has added his voice to the multiple organisations and individuals condemning the recent racist comments made on the "Open Chats Podcast". To read on, click here. Ramaphosa speaks to Trump as SA scrambles to avert 30% US tariffs as deadline hits President Cyril Ramaphosa and US President Donald Trump have spoken telephonically on Tuesday, August 6, 2025, to further discuss bilateral trade matters. To read on, click here. Get your news on the go, click here to join the IOL News WhatsApp channel. IOL News
