Ratepayers in Mnquma municipality settled a R5.3-million invoice for a testing station which was never built.
The Dispatch can reveal today that even though the amount was paid out to a construction company in 2015, the only testing station in the area has not been in operation since 2012 due to its poor state.
A senior traffic officer said residents “are now forced to go to Komga or Engcobo for their drivers’ licences while money is wasted on other things, instead of prioritising this station.”
Documents seen by the Dispatch also reveal that R3.3-million was paid to a company to pave a 900m road leading to Gcuwa Dam.
However, two East London-based independent paving company directors said the value of the work was in the range of R700000 to R800000.
“This company just did the overlay in the existing gravel road,” said the director.
Another one said if there was a price markup, it would not have gone to R3-million. “So the contractor made R2.5-million profit for work that’s worth between R700000 and R800000. Even if this was a markup, it can’t be this much. The payment is more than 350% in profit,” he said.
More documents reveal that R150-million was also paid to a number of construction companies to resurface township roads in the past three financial years but there is little or nothing to show for it as the roads remain in a poor state.
The Dispatch visited a number of the areas including Cuba, Msobomvu, Extension 7, Vuli Valley and Mcubakazi. Many streets have huge potholes while there are no signs that the municipality spent millions of rands in fixing them. In some areas, construction work has been abandoned, leaving residents struggling to negotiate dangerous pathways.
Another senior municipal official said it was a regular occurrence in Mnquma for a service provider to bill the municipality even though there was no evidence to confirm that a job had been done.
“Some of the invoices are paid within a day the invoice has been received, while some people get paid millions of rands before they could even touch the work,” said the source.
These now form part of the Hawks’ investigation which will cover Ngcobo and OR Tambo District Municipality on allegations of fraud and corruption. — bonganif@dispatch.co.za
Mnquma pays R5.3m for nothing
The Dispatch can reveal today that even though the amount was paid out to a construction company in 2015, the only testing station in the area has not been in operation since 2012 due to its poor state.
A senior traffic officer said residents “are now forced to go to Komga or Engcobo for their drivers’ licences while money is wasted on other things, instead of prioritising this station.”
Documents seen by the Dispatch also reveal that R3.3-million was paid to a company to pave a 900m road leading to Gcuwa Dam.
However, two East London-based independent paving company directors said the value of the work was in the range of R700000 to R800000.
“This company just did the overlay in the existing gravel road,” said the director.
Another one said if there was a price markup, it would not have gone to R3-million. “So the contractor made R2.5-million profit for work that’s worth between R700000 and R800000. Even if this was a markup, it can’t be this much. The payment is more than 350% in profit,” he said.
More documents reveal that R150-million was also paid to a number of construction companies to resurface township roads in the past three financial years but there is little or nothing to show for it as the roads remain in a poor state.
The Dispatch visited a number of the areas including Cuba, Msobomvu, Extension 7, Vuli Valley and Mcubakazi. Many streets have huge potholes while there are no signs that the municipality spent millions of rands in fixing them. In some areas, construction work has been abandoned, leaving residents struggling to negotiate dangerous pathways.
Another senior municipal official said it was a regular occurrence in Mnquma for a service provider to bill the municipality even though there was no evidence to confirm that a job had been done.
“Some of the invoices are paid within a day the invoice has been received, while some people get paid millions of rands before they could even touch the work,” said the source.
These now form part of the Hawks’ investigation which will cover Ngcobo and OR Tambo District Municipality on allegations of fraud and corruption. — bonganif@dispatch.co.za
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