The company facing termination of its contract to rehabilitate Lillian Ngoyi Street (formerly Bree Street) has dubbed the Johannesburg Roads Agency’s (JRA’s) allegations of poor performance a smokescreen for the agency’s internal inefficiencies and rogue public officials looking to personally benefit.
Step Up Engineering has warned the JRA that work on site will continue as normal, and if the JRA proceeds with threats to stop operations, then the firm will sue for damages.
“On this score, we are instructed to inform you that, should the JRA remain oblivious to its contractual obligations, our client will seek, inter alia, payment of its profits and damages lost,” according to Tiefenhaler Attorneys Inc in a letter dated Monday.
“Our client insists on performance in terms of the contract and confirms hereby that it is willing and able to complete the works. We are instructed that our client will continue to execute the works in accordance with the contract and will not vacate the site.
Sunday World saw confirmation on Friday evening that the JRA has appointed Kunene Ramapala Inc to act on its behalf, and the firm was in the process of obtaining instructions from the JRA to respond to the letter from Tiefenhaler Attorneys.
In an interview with eNCA, Johannesburg MMC for roads and transport Kenny Kunene conceded the JRA had on occasion failed to pay Step Up Engineering within the prescribed 28-day period. However, Kunene said his ability to intervene was limited to political oversight.
In the notice of intention to terminate the contract, dated July 22, the JRA called for certain alleged breaches to be remedied no later than August 6. The agency reported a 21% progress rate and 52% project time-lapse, with 14% expenditure and only 21% completion in six months. The project was on month seven of the agreed 12-month duration, and without a detailed catch-up plan, it will not reach completion by December 15, 2025, the JRA argued.
Step Up Engineering rebutted the assessment. The firm submitted the actual performance from January through April showed progress ahead of time elapsed by 6%.
The company also claimed the delay in the removal of City Power’s electrical 6.6kV and 88kV cables had prevented them from carrying out tunnel demolition works as planned.
Sunday World understands that on two occassions the company was expected to pay City Power millions of rands to remove its cables, and that behind the scenes crooked public officials demanded kickbacks.
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