Latest news with #R444.7
IOL News
3 days 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
3 days 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.'
