Nehawu claims R35m Northern Cape tender scandal

Turning to the courts could be the only way to force the Northern Cape legislature to investigate allegations about how a company contracted to revamp its building did not complete the work. 

The tender, awarded to Emzansi Projects in 2016 after the building was declared unsafe as a working environment, cost the province R35.2-million. 

Although the legislature was aware of these allegations, the same company was awarded another tender worth R22-million, according to the National Education, Health and Allied Workers’ Union (Nehawu). The province has not confirmed this.

These allegations are in documents that form part of a legal battle between the legislature and Nehawu.

The union claims that the speaker’s office failed to investigate fraud allegations related to the refurbishment of the legislature building. 

Nehawu sent letters to the speaker of the legislature, Newrene Klaaste, which the Mail & Guardian has seen, demanding that she appoint an independent forensic investigator to look into at least R22-million that was spent on work that was never done. 

In one letter, dated 27 July, Thaanyane Attorneys, representing Nehawu, threatened to turn to the courts to force Klaaste to investigate allegations of fraud and place officials allegedly involved under precautionary suspension. 

The government’s health and safety inspectors, who visited the building in 2019, three years after the tender was issued, identified structural, design and wiring problems that needed urgent attention and recommended that the building be closed for repairs. 

In their report, the health and safety officials identified 16 defects, including leaking roofs, no first aid boxes, no emergency routes, broken toilets, no fire detector systems and transformers that overheat. They said all offices in the administrative wing needed to be rewired. 

The union has since blamed the secretary of the legislature, Patrick Moopelwa, suspended chief financial officer Garth Botha, project manager Mike Muller and the former manager, Gladman Siyo, who were responsible for overseeing the project.

Nehawu branch secretary Mpho Merriman said that in 2017, Emzansi Projects issued a R4.2-million invoice to the legislature together with the principal agent for the project, Koor Dindar Mothei Quantity Surveyors (KDM), which in turn issued a certificate of completion of the work. 

The two companies said they had installed electrical and concrete framework, reinforced the ceiling and partitions, did plastering and worked on the flooring. 

Merriman said no work was done. 

“This work has never been done despite having been claimed by Emzansi Projects and confirmed by KDM,” Merriman wrote.

He alleged that another company did the electric installations in 2019. 

Nehawu also alleged that Emzansi Projects and KDM got the tender for another project worth R22-million but the work was never completed. 

The KDM’s Bonakelo Mothei has denied these allegations and said that the work, which cost the legislature R26 405 964.90, “has been concluded”.

But, in an open letter to Siyo, Muller said the project had gone on for 18 months without progress and said it had taken a toll on his health. Citing low staff morale, high work volumes and little to no resources, Muller said things were going wrong with the project. 

Botha and Moopelwa are also facing a Hawks investigation, which was confirmed by Hawks spokesperson Nomthandazo Mnisi.

Moopelwa has been accused of fraudulently benefiting from R600 000 related to the non-pensionable allowance reportedly paid to him — an initial amount of R367 788.18 and R13 870.24 paid every month. 

Botha was allegedly paid a resignation allowance while still working. 

Moopelwa told the Mail & Guardian the R35.2-million tender was awarded to Emzansi Projects, which was appointed as the main contractor and was paid the amount of R21.8-million from this budget for work done by them. 

He said the contract was ceded to a sub-contractor, Bizz Africa, to complete the outstanding items within the scope of works. 

“Of this total contract amount, the appointed professional team [KDM], consisting of engineers, architect and the quantity surveyors, was entitled to related professional percentage fees, preliminaries & general cost and disbursements. Emzanzi could not finish the project on its own thus the work was ceded to Bizz Africa to finish the project. 

“At this stage after the appointment of Bizz Africa the professional team has certified that the required work has been completed in line with the scope of works of the project, and that payments were made for such works. Any identified latent defects will be highlighted and handled within the provisions of the Joint Building Contracts Committee,” he said.

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