BorCon Consulting has been terminated as the contractor on the controversial R400-million Durban University of Technology (DUT) construction project amid allegations that the Department of Labour is investigating fraud in the company’s appointment.
The termination comes despite BorCon owner Brad Boertjie’s continued denials that he was ever a contractor on the job.
“Not sure what you don’t understand, but as I have previously advised that I never was the contractor on DUT355 [project code],” Boertjie insisted when approached for comment.
However, Sunday World has seen a document showing that Boertjie was indeed appointed as a contractor, with Siphelele Kweyama listed as the contact person from the university.
The documentation directly contradicts Boertjie’s claims and confirms his company’s involvement in the project that has now been shut down by labour authorities.
Work stopped
Following Sunday World’s initial exposé of the procurement scandal, the Department of Employment and Labour has taken decisive enforcement action, issuing a prohibition notice that effectively shuts down the entire R400-million construction project at DUT’s Steve Biko and Pietermaritzburg campuses.
Departmental spokesperson Teboho Thejane revealed the damning findings that led to the shutdown.
“An inspection was conducted on August 6, 2024, where the findings confirmed the allegation that BorCon has assumed in practice the role of a Principal Contractor. A Prohibition Notice was issued on the site,” he said.
Thejane also said the Department’s investigation uncovered systematic regulatory violations that had been concealed from authorities.
“The Department has not issued any Construction Work Permit naming BorCon as any of the role players,” Thejane stated, exposing the possible fraudulent nature of BorCon’s involvement.
Not qualified to work on project
Thejane further detailed how the company allegedly operated without proper authorisation.
“Construction Work Permits are non-transferable, and changes in role players require a formal application to amend the permit. No such formal application or enquiry was received. The Department was not notified by DUT of BorCon’s involvement and was therefore not in a position to authorise or monitor their participation in the project,” he said.
The Department’s swift action demonstrates a zero-tolerance approach to permit fraud in public infrastructure projects.
The original Construction Work Permit for the DUT355 project was issued on September 20, 2019, with Temi Construction designated as the Principal Contractor – not BorCon.
“Following the recent allegations, the Department has prioritised this matter,” Thejane confirmed.
Not on database
The Department’s investigation suggested BorCon’s fundamental lack of qualifications for such large-scale work.
“BorCon does not appear on the CIDB database as a registered contractor at the required Grade 8 or 9 level for large-scale public infrastructure projects,” Thejane disclosed.
The department allegedly unearthed critical violations:
• BorCon operated as Principal Contractor without proper authorisation or Construction Work Permit for the DUT355 project
• The company lacks required Grade 8 or 9 CIDB accreditation necessary for R400-million public infrastructure work
• No formal application was submitted to amend permits when BorCon assumed contractor responsibilities, invalidating the entire permit
SCOPA stepped in
The Standing Committee on Public Accounts (SCOPA) has now stepped in, demanding that DUT’s council provide all relevant information regarding the procurement scandal that saw BorCon controversially handed the R76-million contract to complete the colossal project without following proper tender processes.
The parliamentary intervention follows Sunday World’s exposé revealing how BorCon’s fees allegedly ballooned by 27,000% — from R278,250 to R75.8-million — through irregular procurement processes that bypassed standard bidding requirements.
Siphelele Kweyama and Thabani Mhlongo are alleged to be at the centre of BorCon’s unlawful appointment, with Kweyama specifically identified as the university contact person in appointment documentation seen by Sunday World.
Last week, the Department of Higher Education and Training said it had received information relating to an internal audit initiated by the university.
“The Internal Audit has commenced investigations in response to some of the allegations, and the minister has requested to meet the council of the university based on the responses they have provided thus far on the investigation,” said department spokesperson Lucky Masuku.
Thejane said, whilst there is no evidence suggesting that any of the department’s officials are “compromised in this matter, the Department’s Risk Management Unit will investigate these allegations thoroughly”.
The prohibition notice effectively halts all construction work at both the Steve Biko campus and Pietermaritzburg campus sites, leaving the future of the R400-million project uncertain while comprehensive investigations continue.
