Probe into R4m project

The office of the Auditor-General is investigating how an Eastern Cape municipality paid more than R4-million to a construction company, despite them allegedly not delivering product according to specifications.

The office of AG Kimi Makwetu confirmed it is investigating the contract awarded in March to Huntsu Construction and Projects by Nkonkobe municipality.

In the meantime, the paving is incomplete and material has been left on the side of the road.

Nkonkobe municipality spokeswoman Siya Hompashe said the municipality had held back payments to the company and should the AG find any irregularities, funds already paid to the company Lwould be recouped.

“Obviously when 80mm and 60mm bricks are not priced the same, 60mm will be cheaper. Because of this, we have not paid the supplier in full. There are payments that have been withheld, which are still outstanding to the service provider,” Hompashe said.

The Dispatch understands that a delegation from the AG and municipality visited the sites where paving was being done two weeks ago. “The contract for Huntsu Construction and Projects was awarded through a deviation process,” Hompashe said.

A dossier in possession of the Saturday Dispatch shows that the company was appointed in March to roll-out the project for four months. The contract was extended for three months and again for another four months.

Auditor-General spokesman Africa Boso said that the contract was selected as part of the normal process of auditing the financial statements of Nkonkobe municipality for the year ending June 30, 2015.

“The selection was based on the auditor’s judgment, including the risk assessment as required by the international auditing standards.

“If findings have material misstatements and findings on compliance with specific legislation, they will form part of the audit report that will be issued to the accounting officer, as required section 126 (3) Municipal Finance Management Act (MFMA) No. 56 of 2003,” Boso said.