R45m paid for toilets that are nowhere to be seen

Dispatch has retracted certain statements contained in this article. The full apology to Izwelethu Cemforce can be found here

A Kimberley-based company has already been paid R45m to build stand alone toilets in Cofimvaba — yet not a single structure has gone up.

A further point that has raised questions about the project is that within only four days of the Chris Hani District Municipality (CHDM) awarding the contract to the company, Izwelethu Cemforce, on November 15, the company started invoicing the municipality.  

The Dispatch has established that on December 6, R45m was paid into Izwelethu Cemforce’s account after municipal officials had to be recalled from a conference.

While CHDM acting municipal municipality manager Bhekisisa Mthembu admitted the money had been paid, Izwelethu Cemforce CEO Wiccus Diedericks would not discuss “confidential client information” and would not “confirm nor deny payments.”

The company's contract is to build 4,600 toilets in wards 1, 2, 5, 6 and 7 in the Ntsika Yethu local municipality.

The project is expected to be completed at the end of August 2020.

The Dispatch was first alerted to the toilet shortage by concerned Cofimvaba resident, Nqabayomzi Ntshantsha.

Ntshantsha said elderly people  on crutches were still forced to relieve themselves in the bush, but nothing was being done to help them.

But Dispatch investigations have now shown that while there are plans to build toilets, nothing has come of this despite tens of millions of rand already being paid.

The Dispatch visited one of the sites in ward 2, Ntshingeni village, this past week. Not a single toilet has been built.

Residents did not want to speak on record about the project, as they fear for their safety.

“You can take pictures. Not a single toilet has been built and we were told that this will happen only next year. There is not a single concrete slab (toilet foundation) in this village,” said a 67-year-old woman.

A source familiar with the deal told the Dispatch that Mthembu and his staff members had to abandon the South African Local Government Association conference they were attending in the Alfred Nzo district earlier this month, to fast-track the payment.

The CHDM payment vouchers, which the Dispatch has seen, show that finance officials, programme manager, capital projects manager and other municipal officials signed the documents for the funds to be paid.

The Dispatch has the names of all the officials who signed the documents to release the payments.

Izwelethu Cemforce project manager Etienne Degenaar, who signed the documents seen by the Dispatch, refused to comment and referred the Dispatch to Diedericks.

Acting municipal manager Mthembu said they had a mandate to deliver services to the communities and “as a public institution we are open to public scrutiny”.

“It is rather unfortunate to view the payment as an upfront payment as it relates to procurement of material for the actual building of the VIP toilets. The contractor has already been introduced to the community where the project will be taking place, and the appointment of the community project steering committee has also been done to ensure that the community plays its part in monitoring the project,” said Mthembu.

He said the municipality was transparent in its processes.

“We are committed to the principles of good governance. We would like to confirm that the contract for sanitation has been awarded to the said company and that we anticipate that the project will be completed by the end of August 2020.”

He said CHDM would closely monitor progress all stages of the project implementation to ensure that a quality product was delivered.

“The contract will be subjected to the normal review processes that exist for all government institutions as sanctioned by the auditor-general. Again, the municipality wants to state categorically that it has not transgressed any law that governs the management of public funds.”

Diedericks, too, said everything about the deal was above board.

“This is a legitimate contract, not like the Siyenza contract. At times a deposit is paid for the product and we are manufacturers so this will also benefit SMMEs.”

But not everyone agreed that the situation could not be likened to the Siyenza toilet scandal, involving the company that was awarded the R600m tender to build pit toilets in villages under Amathole District Municipality.

A source at the municipality said this was a “carbon copy” of the  Siyenza scandal, which was later investigated by the Hawks.