Daily Archives: March 5, 2018

R103m paid before work done

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They paid a firm of consulting engineers R103m before it did any work and awarded it the contract without it going to tender.

This week was the turn of North West public works department officials to face a late-night grilling in the provincial legislature from a portfolio committee. Members of the Provincial Legislature (MPLs) demanded to know why they went “all the way to Mpumalanga” in March last year to find a company to manage an “emergency” project to repair flood-damaged roads across the province.

The multimillion-rand contract was handed to a Mpumalanga-based company to oversee the project at more than 30 sites in three months. The company’s directors were unavailable for comment yesterday.

In the meeting, which began on Wednesday evening and ended after 01:00 on Friday morning, MPLs asked how officials could justify the R103m prepayment. They couldn’t do so and were allowed time to find a letter justifying it.

This follows a marathon meeting last week at which MPLs demanded answers from the province’s health department about how Gupta-linked company Mediosa received a R180m three-year contract – and a R30m upfront payment – for a mobile clinic service without it going to tender.

During the meeting, public works officials said the contract wasn’t put out to tender because it was an “emergency”. The committee heard that before working in North West, the Mpumalanga-based firm had worked on water projects for the Mbombela municipality.

Committee member Boitumelo Moiloa questioned why the company received the upfront payment “on the eve of financial year end last year”. She asked if the department thought: “We will take this money, dump it somewhere (for it to appear) as if it was put to use.”

Another member Wendy Matsemela said there was “no difference” between this contract and the one awarded to Mediosa.

MPL Alfred Motsi told the meeting the company, little known in North West, could have been earmarked for the project by someone influential.

He said the premier’s letter was signed on March 7, the company’s letter of acceptance on March 14 and, 10 days later, it was paid R103m. “Someone somewhere knew about this company.”

“We requested a report on the company last year October and it’s only coming now, at the end of February, meaning it was being doctored,” Motsi said.

In a letter to then transport minister Dipuo Peters titled “Request to redirect funds for addressing flood-damaged road infrastructure”, North West Premier Supra Mahumapelo explains the urgent need to prioritise damaged roads and to have other projects deferred to the following financial year.

“An amount of R103m has been put aside for this exercise. This amount is what could be salvaged while the actual quantification of the full extent for the flood damage is undertaken,” Mahumapelo wrote.

“It is on this basis that we request your approval to deviate from the approved 2016/17 project list, for the purpose of addressing flood- damaged roads and bridges infrastructure.”

Public works department head Pakiso Mothupi said they didn’t have the “human capital” and were dependent on external companies to manage the project.

During the committee’s questioning, a department official said the same company was given another R11m contract to repair a road leading to the Oberon holiday resort near Hartbeespoort Dam, which hadn’t been budgeted for.

Seven days later, on March 14 last year, the company formally accepted its appointment as implementation agent for the massive road rehabilitation project, to be undertaken over three months ending in June. According to Mothupi’s report, the project was “completed successfully”.

Sources in the department told City Press that a senior official “signed twice for one chief director who deliberately stayed away from the office because he didn’t want to be part of what would later become a scandal”. The department is expected to appear before the portfolio committee this week.

Source: http://www.citypress.co.za

Education receives biggest chunk of provincial budget

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The Department of Education and Sport Development received the largest chunk of Bokone Bophirima’s provincial 2018/2019 budget. MEC for Finance, Economy and Enterprise Development (FEED), Wendy Nelson, tabled the budget on Thursday before the North West Provincial Legislature.

R16.183 billion – which translates to 39% of the total provincial budget – was allocated to the department for the financial year starting on 1 April.
The budget allocation is the clearest sign that education remains a key priority for the provincial government to use as an instrument to develop future generations and improve their lives.

MEC Nelson said education would continue to receive the largest portion of the budget in the province.
“The Department of Education and Sport Development has received the largest portion of the budget and it will continue to receive the largest portion of the budget. This is because it is an investment into our future and investment into our children. The budget will cover running of operations, grants and infrastructure. To address the backlog in infrastructure, R1billion has been allocated to improve the conditions in which our learners are studying under. Schools will also be consolidated so that we do not have many schools servicing the same grades in one area,” she said.

Education and Sport Development MEC, Sello Lehari, said the department deserves the biggest budget because it has got the largest number of employees.

“We welcome the announcement and we will use the money wisely. It is important to remember that we have the largest department and we are tasked with a huge responsibility of educating the nation,” Lehari said.

The Department of Health received the second largest portion of the Provincial Budget at R11.154 billion for 2018/19, R11.934 billion and R12.884 billion in 2019/20 and 2020/21 financial years respectively.

The 2018/19 allocation includes the funding of R1.315 billion for the comprehensive HIV/AIDS and Tuberculosis (TB) Grant of which R167.729 million is allocated to a new component of the Community Outreach Services Grant. National Tertiary Services Grant is allocated R283.055 million and Health Facility Revitalisation Grant is allocated R585.886 million.

In line with the National Development Plan (NDP), the budget allocation is expected to strengthen the effectiveness of the health system by increasing life expectancy and thereby decreasing mortality rates.

“We strive to equip our medical institutions across the province to reduce shortages of medicines and medical supplies. To this end, an amount of R3.047 billion has been allocated over the 2018 MTEF with R1.350 billion allocated in 2018/19 Financial Year,” said Nelson.

The allocation for the Department of Rural, Environment and Agricultural Development (READ) amounted to R1.440 billion for 2018/19, increasing to R1.531 billion in 2019/20 and R1.645 billion in 2020/21 financial year.

The Department of Culture, Arts and Traditional Affairs (CATA) was been allocated a budget of R732.049 million for the 2018/19 financial year, increasing to R812.245 million in the outer year of the MTEF period. This allocation will amongst others, assist this department to preserve the rich history of this province and by so doing creating the tourism market.

MEC Nelson said community and road safety remains one of the provincial government’s paramount priorities.

“The Department of Community Safety and Transport Management receives an allocation of R6.815 billion over the MTEF period. An amount of R2.163 billion is allocated for 2018/19, R2.263 billion for 2019/20 and R2.388 billion for 2020/21,” she said.

The Department of Local Government and Human Settlements was allocated R7.767 billion over the MTEF, largely funded by the Human Settlement Development Grant. An amount of R2.477 billion is allocated for 2018/19, growing to R2.570 billion in 2019/20 and R2.719 billion in 2020/21.

“In pursuit of the province’s Five Concretes, this department’s allocation will contribute to the Rebranding, Repositioning and Renewal of Bokone Bophirima through the provision of houses. The allocation will also improve access to basic services such as water and sanitation,” said Nelson.

The Department of Public Works and Roads received R3.021 billion in 2018/19 increasing to R3.326 billion in 2020/21 financial year. Of this allocation, an amount of R960.604 million is earmarked as a conditional grant for provincial road maintenance.

Departmental budget announcements will follow soon after this provincial budget announcement.

Source: http://www.semphetenews.co.za