Buffalo City Metro has hired a consultant to investigate why a contractor more than doubled the cost of a water and sanitation project.
Last month, acting city manager Bob Naidoo told council that he had deviated from normal supply chain processes and hired engineering consultants to probe the price hike for the tender.
The original figure for the water and sanitation tender awarded to KwaZulu-Natal-based Mvusa Trading 595cc was R19.4-million. However, the company increased the cost by R26.6-million to R46-million.
The probe comes after the council rejected a report tabled in council in January by former acting city manager Nceba Ncunyana, who said the council should note the contract amendment.
The company had claimed that a rock had been discovered in the area where it was working, resulting in the cost of the project skyrocketing.
The Dispatch reported in February the company was scheduled to supply taps and waterborne toilets to 197 houses in Gqozo village in Mdantsane’s NU1.
The work was supposed to have been completed on January 27 this year, but work came to a grinding halt as the construction site was closed last year in August. Project director Manzini Zungu said they had to stop working after the allocated funds had been spent. This left some residents jobless and many disappointed, as the work had not been completed.
Deputy mayor Zoliswa Matana, ANC councillors Sindiswa Gomba and Crosby Kolela and the DA’s Terence Fritz called for a probe into the contract, saying it was “suspicious” that the revised cost of the contract showed an increase of more than 100%.
In his deviation report, Naidoo, however, did not reveal which consultants would investigate the matter. Instead, he said: “The accounting officer procured through the deviation a qualified consultant will be able to carry out this work diligently and independently in order to ensure that the resolution of council on January 31 2017 is responded to adequately.”
A formal procurement process “could not be followed due to the time constraints given by council to conclude the matter”.
The investigation work is expected to cost the city more than R200000 but Naidoo did not give the exact amount, saying this was due to the “specialised nature of the investigation and possibility of other complementary support skills which may be required to give effect to the conclusions which will be made by the consultant, in this regard”.
He said a formal bidding process would not meet the requirements of the procurement.
No response had been received at the time of writing from BCM spokesman Sibusiso Cindi to queries on who had been awarded the contract and how far the work had progressed.
The DA and ANC said yesterday they welcomed the probe.
The DA’s Fritz said the party hoped to have the investigation findings before June. — mamelag@dispatch.co.za