Latest news with #R261
The Citizen
4 days ago
- Business
- The Citizen
Seven incomplete Gauteng schools leave R955 million in the dust
Two school construction projects valued at a combined R261 million have been left without completion dates due to contractor disputes. School construction projects in Gauteng that have cost almost R1 billion are yet to see pupils or teachers in classrooms. The Gauteng Department of Education (GDE) provided an update on seven school development projects, some which were in their fourth year of construction. The provincial department of infrastructure development (GDID) is responsible for the sites, but have just undergone a change in departmental leadership. Poor contractor performance The GDE shared the information with the provincial legislature in response to a question posed by the Democratic Alliance (DA). Signed off by MEC Matome Chiloane, the response details the budgets for each school and the reasons for the delays. Contractors terminated due to poor performance were the primary reason in all seven cases, with several projects currently at a standstill without proposed completion dates. 'This denies learners the opportunity to be taught in a conducive environment and the delivery of quality education,' stated DA Gauteng shadow representative for education Sergio dos Santos. 'Our children cannot afford any more broken promises. It is time to put them first and hold this government to account for every single incomplete school building across Gauteng.' Over R100 million for a shell Among the worst cases is Inkululeko yeSizwe Primary School, near Vlakfontein, which remains a shell while pupils enrolled at the school are taught in old shipping containers. Contractors broke ground on the new development in late 2020 and the provincial government allocated R137 million for the project. The department stated the project had been affected by community and SMME interruptions since the project began, and is unaware when the school will be completed. 'Challenges like slow progress on site, late delivery of materials and equipment breakdown were experienced,' stated Chiloane. 'The contractor continued to demonstrate in-capacity cashflow issues and notices were issued. GDID has initiated the termination of the contractor and the personal service provider.' Some nearing completion Other schools include Refithlile Pele Primary, which began construction in September 2022 and as of June, the project was at 87% completion. Thabotana Farm School near Heidelberg began in 2024 with a budget of R160 million, with the project having stalled due to the termination of the contractor. Simunye Secondary near Randfontein began in 2021 at a cost of R123 million, with the GDE stating the project was only at 66% completion — with the termination of the contractor pending. Rust Ter Vaal Secondary near Vereeninging is behind schedule due to poor contractor performance as well as challenges with the municipality. 'The contractor submitted a revised recovery plan. There is a risk of power connection. Emfuleni municipality needs to confirm if the municipality has capacity,' stated the GDE. Semphato Combined Secondary in Soshanguve and Dr WK Du Plessis LSEN near Springs both began in 2021, and are at 92% and 97% completion, respectively, at a combined cost of R378 million. In total, the seven schools have a combined budget of R955.9 million. Plans for accountability Dos Santos asked the department what steps had been taken to enforce accountability in relation to the projects. 'Since the above delays are not related to any GDE official's underperformance, no official has undergone any disciplinary hearing,' stated the education MEC. 'Contractors and service providers have been put on terms and some cases terminated due to poor performance.' Infrastructure MEC Jacob Mamabolo recently welcomed a new head of department, former education head of department Rufus Mmultana. Mamabolo and Mmultana last week outlined their vision for the province, stating the new in-house project management tracking would improve the department's workflows. 'If we don't deliver these productive assets to the people, we will not improve their quality of life and we will not grow the economy,' said Mamabolo. NOW READ: 'Cutting ribbons': Infrastructure MEC on how department will build Gauteng
TimesLIVE
06-05-2025
- Business
- TimesLIVE
Sunoco to buy rival Parkland in $9bn deal
Sunoco will buy Canada-based Parkland in a deal valued at about $9.1bn (R166,457,655,000), including debt, the US fuel supplier said on Monday, a move that would create the largest independent fuel distributor in the Americas. Parkland management hailed the deal as a path to greater financial stability and growth. The company had undertaken a strategic review in March after persistent pressure from Simpson Oil, its largest shareholder with a nearly 20% stake, and activist investor Engine Capital. Simpson expressed its displeasure with the deal on Monday, a sign internal turmoil at the Canadian company is not over. Under terms of the deal, each Parkland share will be exchanged for C$19.80 (R261,86) in cash and 0.295 Sunoco unit, a 25% premium over the seven-day volume-weighted average price. Parkland cancelled its May 6 annual general meeting and instead scheduled a special meeting for June 24 at which Parkland shareholders will vote on the Sunoco transaction. In a statement on Monday, Simpson Oil, which had been trying to wrest control of the company's board by proposing its own proxy slate of board candidates, said it has applied for a court injunction to force Parkland to hold the annual general meeting on May 6 as initially planned. Simpson said Parkland's board is pushing ahead with the deal despite losing shareholders' confidence, calling it a "last-ditch attempt" by the company to retain control. Shares of Sunoco, which operates in wholesale fuel distribution and retail convenience, were down 5.6% at midday while those of Parkland were up 6.3%. The acquisition marks the company's second major deal in recent years. In 2024, Sunoco acquired fuel storage and pipeline operator NuStar Energy for $7.3bn (R133,488,521,240). The Parkland deal is expected to close in the second half of the year and deliver more than $250m (R4,570,880,000) in annual cost savings by the third year. Sunoco said the transaction will boost cash flow by more than 10% and allow the combined company to return to its target debt levels within 12 to 18 months of closing. To fund the cash portion, Sunoco has secured a $2.65bn (R48,451,328,000), 364-day bridge loan, a short-term facility often used to bridge financing gaps in large deals. On a call with analysts, executives said the companies will distribute more than 15-billion gallons of fuel annually and strengthen their position across wholesale and retail markets. Sunoco will keep investing in Parkland's Burnaby Refinery, which makes cleaner, low-carbon fuels, and run it for the long term to supply fuel to the Lower Mainland region in Canada.
