1. a) The total amount paid to-date since the inception of the project is R62,856,601 and this amount is inclusive of the contactors expenditure, professional and DBSA Management fees.
b) The Development Bank of Southern Africa (DBSA), as the implementing agent, is currently in the process of procuring the replacement contractor after the termination of the current contractor. The project is planned for advertisement on the 27th September 2024 and closing on the 18th October 2024.
The planned date of appointing the replacement contractor is 25th November 2024. DBSA further plans to hand over the site to the successful bidder on the 09th December 2024 and project is scheduled to be completed within eighteen-month construction period. The expected practical completion date is May 2025.
c) The reason for the delay in the completion of this project is due to the fact that the initial contractor appointed in 2017, Soaring Summit Development could not complete the project due to poor performance on site and during 2019 they opted to cede the contract to another construction company namely, Ikaheng Plant Hire Developers. Unfortunately, Ikaheng Plant Hire Developers could not proceed with the project from onset and opted to terminate the appointment.
Following the termination by Ikaheng Plant Hire Developers, after completing another planning process, DBSA re-advertised the project resulting in Mpfumelelo Business Enterprise appointed as a successful bidder and commenced with the works in January 2021. At the initial stages, the project progressed well and later slowed down due to various reasons, ranging from slow progress on site, late payments and withdrawal of professional service providers on site, that were eventually resolved.
Mpfumelelo Business Enterprise continued providing services on site at a very minimal pace and eventually terminated their services in April 2024 due to three delayed payments that could not be processed on time to DPWI by DBSA. The termination was done by invoking the relevant contractual clauses for the breach of contract on late payments. The delayed payments were for services rendered. The process to appoint a replacement contractor to complete the works is underway.
2. NDPWI through the Implementing Agent (DBSA) is in a process of recovering the costs suffered due to the termination of the Contractor, which did not complete the project. The DBSA through their legal department have engaged the Contractor to recoup the amount of R 22 314 111.00 suffered as final damages.
The Minister is also looking at mechanisms to bar businesses and directors mentioned from doing business with the state.