The broadband project costing the Eastern Cape government more than R220-million and to which both the national Treasury and State Information Technology Agency (Sita) have objected to, is showing signs of shoddiness.
Fibre optic cables for the project are lying on the side of the road unattended while some are exposed along the N2 between Grahamstown and King William’s Town.
Late last year, embattled provincial director-general Marion Mbina-Mthembu and a number of other officials approved a R57-million payment to Gauteng-based Liquid Telecom, termed “milestone payment for the implementation of broadband services”.
The payment, which was approved on December 18, was in addition to the R171-million payment authorised on December 6.
The Saturday Dispatch has seen documents which were prepared by Eastern Cape government IT officer Quinton Ndibongo for approval to commit funds to Liquid Telecom for the roll-out of provincial broadband.
The R228-million was paid to the company despite national Treasury refusing to give the multimillion-rand project the thumbs-up. Sita, which has powers over broadband projects, would not allow Mbina-Mthembu to go ahead either.
However, today the project is in full swing as fibre optic cables are being laid in strategic areas across the province for the rollout of the internet connection project. It is expected to connect more than 7000 government institutions, which includes more than 5000 schools, hospitals and police stations.
Contractors are already working along the N2 between King William’s Town and Port Elizabeth laying the optic fibre cables.
A Dispatch team saw cables that are laid on top of the ground, exposed for hundreds of metres. In some areas, the cables are covered by less than 20mm of soil while the project in some areas seems to have been abandoned.
Senior officials in Bhisho said not only should the cable be at least half a metre underground, but security should also be provided to safeguard the cable as it is expensive.
They said the shoddy work could lead to the project being sabotaged.
“We have paid the money and as you know, there’s no company that can work without being paid. But now, look at the work that they’ve done.
“You will ask yourself why this project is being ‘fast-tracked’ while national government is against the processes followed,” said a source, who has an intimate knowledge of the broadband rollout.
Sita executive for multi-stakeholder projects Sithembele Senti confirmed to the Dispatch that the project was not authorised by them.
“It would have been unlawful for us to do that. There should not be a direct transaction between the department and the service provider.
“We are a guarantor and a warrantor and this project never got any go-ahead from us.”
Meanwhile, provincial government spokeswoman Mandisa Titi said the project had kick-started.
“The first phase of the project, which entails site verification, has kick-started. The rollout will happen in phases and the project is at the very elementary stages, therefore raising that question during the site verification stage is tantamount to jumping the gun,” she said when asked if they had checked the project as there are cables that are lying along the N2 main road, near Peddie.
Titi would not give figures of how much has been paid so far to Liquid Telecom.
“As is the norm, the PFMA prescribes that before the commencement of any project, the initiators have to consider the funding mechanism and once funds are identified, they get committed and attached to that project.
“Yes, this process has been undertaken and funds have been committed to this project. Payments will be honoured in keeping with the ambit of the law governing public funds,” she said.
The province had applied to “piggyback” on a 10-year multibillion-rand broadband tender between the Western Cape government and Gauteng-based Liquid Telecom.
The piggyback process was approved by Mbina-Mthembu but national Treasury would not approve it, calling for an open tender bidding while Sita is said to be distancing itself from the project.
National Treasury acting chief procurement officer Willie Mathebula called for a competitive bidding, arguing there might be a more experienced and yet cheaper service provider.
Requesting the latest payment approval, Ndibongo said in the document: “Up to R57-million of the milestone payments of professional services, project management, high-level design, low-level design, project plan, bill of materials, bill of quantities necessary for the commencement of the delivery of services, as well as the mobilisation of administrative and technical support necessary.”
The broadband project, according to government sources, has also been installed at the Cecilia Makiwane Hospital in Mdantsane, where it was officially launched by government officials.
But Eastern Cape health spokesman Sizwe Kupelo would not comment, referring the Dispatch to the Office of the Premier (OTP) for comment.
Last year, provincial Treasury denied to the Dispatch that they had paid out the R171-million.
Provincial Treasury spokeswoman Nosisa Sogayise said at the time: “No payment has been released pertaining this contract in the Eastern Cape provincial Treasury systems ... the department is still assessing the documentation we have requested.” — bonganif@dispatch.co.za
Cables paint picture of mismanagement
Fibre optic cables for the project are lying on the side of the road unattended while some are exposed along the N2 between Grahamstown and King William’s Town.
Late last year, embattled provincial director-general Marion Mbina-Mthembu and a number of other officials approved a R57-million payment to Gauteng-based Liquid Telecom, termed “milestone payment for the implementation of broadband services”.
The payment, which was approved on December 18, was in addition to the R171-million payment authorised on December 6.
The Saturday Dispatch has seen documents which were prepared by Eastern Cape government IT officer Quinton Ndibongo for approval to commit funds to Liquid Telecom for the roll-out of provincial broadband.
The R228-million was paid to the company despite national Treasury refusing to give the multimillion-rand project the thumbs-up. Sita, which has powers over broadband projects, would not allow Mbina-Mthembu to go ahead either.
However, today the project is in full swing as fibre optic cables are being laid in strategic areas across the province for the rollout of the internet connection project. It is expected to connect more than 7000 government institutions, which includes more than 5000 schools, hospitals and police stations.
Contractors are already working along the N2 between King William’s Town and Port Elizabeth laying the optic fibre cables.
A Dispatch team saw cables that are laid on top of the ground, exposed for hundreds of metres. In some areas, the cables are covered by less than 20mm of soil while the project in some areas seems to have been abandoned.
Senior officials in Bhisho said not only should the cable be at least half a metre underground, but security should also be provided to safeguard the cable as it is expensive.
They said the shoddy work could lead to the project being sabotaged.
“We have paid the money and as you know, there’s no company that can work without being paid. But now, look at the work that they’ve done.
“You will ask yourself why this project is being ‘fast-tracked’ while national government is against the processes followed,” said a source, who has an intimate knowledge of the broadband rollout.
Sita executive for multi-stakeholder projects Sithembele Senti confirmed to the Dispatch that the project was not authorised by them.
“It would have been unlawful for us to do that. There should not be a direct transaction between the department and the service provider.
“We are a guarantor and a warrantor and this project never got any go-ahead from us.”
Meanwhile, provincial government spokeswoman Mandisa Titi said the project had kick-started.
“The first phase of the project, which entails site verification, has kick-started. The rollout will happen in phases and the project is at the very elementary stages, therefore raising that question during the site verification stage is tantamount to jumping the gun,” she said when asked if they had checked the project as there are cables that are lying along the N2 main road, near Peddie.
Titi would not give figures of how much has been paid so far to Liquid Telecom.
“As is the norm, the PFMA prescribes that before the commencement of any project, the initiators have to consider the funding mechanism and once funds are identified, they get committed and attached to that project.
“Yes, this process has been undertaken and funds have been committed to this project. Payments will be honoured in keeping with the ambit of the law governing public funds,” she said.
The province had applied to “piggyback” on a 10-year multibillion-rand broadband tender between the Western Cape government and Gauteng-based Liquid Telecom.
The piggyback process was approved by Mbina-Mthembu but national Treasury would not approve it, calling for an open tender bidding while Sita is said to be distancing itself from the project.
National Treasury acting chief procurement officer Willie Mathebula called for a competitive bidding, arguing there might be a more experienced and yet cheaper service provider.
Requesting the latest payment approval, Ndibongo said in the document: “Up to R57-million of the milestone payments of professional services, project management, high-level design, low-level design, project plan, bill of materials, bill of quantities necessary for the commencement of the delivery of services, as well as the mobilisation of administrative and technical support necessary.”
The broadband project, according to government sources, has also been installed at the Cecilia Makiwane Hospital in Mdantsane, where it was officially launched by government officials.
But Eastern Cape health spokesman Sizwe Kupelo would not comment, referring the Dispatch to the Office of the Premier (OTP) for comment.
Last year, provincial Treasury denied to the Dispatch that they had paid out the R171-million.
Provincial Treasury spokeswoman Nosisa Sogayise said at the time: “No payment has been released pertaining this contract in the Eastern Cape provincial Treasury systems ... the department is still assessing the documentation we have requested.” — bonganif@dispatch.co.za
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