Contractor Sabelo Mjwara has slapped ActionSA Gauteng with a letter of demand following allegations of misconduct in the R197-million Beyers Naude road upgrade project.
Mjwara demanded that the party and its provincial chairperson Funzi Ngobeni withdraw the “defamatory” allegations and issue an apology.
The contentious tender
Beyers Naude is one of Johannesburg’s major arterial routes.
It runs for more than 30km from Auckland Park to Muldersdrift.
The upgrade project tender was awarded to GMK Civils, a KZN-based construction company owned by Mjwara in 2022.
It was contested by 48 service providers who all failed the vetting process, leading to Mjwara’s awarding.
The tender prize
In two statements earlier this month, Ngobeni flagged the project.
According to Ngobeni, the tender, which was initially valued at R168-million, was inflated by an additional R29-million when it was awarded to Mjwara’s company.
In the letter of demand, which we have seen, Rudolph Baloyi Inc. stated that their client, Mjwara, did not pocket more than the advertised price.
Only 15% claimed
The lawyers said Mjwara was awarded a budget of R168-million and has only claimed about 15% of the money.
“The Beyers Naude Project (“The Project”) is a multi-year project awarded to GMK after an open bid and evaluation process for R168.9-million in late 2022, and not 2019 as ActionSA insinuates.
“GMK only started work on the project in early 2023.
“GMK only invoices the department for work done.
So far, GMK has only been on site for around 10 months and has not even exhausted 15% of the total budget of the project,” read the letter.
Subcontractors
According to Ngobeni, GMK has worked with two sub-contractors who were not paid for their services.
Responding to the allegations, Mjwara’s lawyers disputed the allegations, arguing that GMK has evidence of the payments.
“Our clients also deny that Buyi Civils and Taochi Investment were not paid and demand proof of same.
“Our client has provided us with copies of payments made to both entities.
“ActionSA and/or two entities must also indicate which invoices were submitted, when and for what work were these invoices for,” the lawyers said.
GMK accused of abandoning the project
Ngobeni claimed that the project, which is expected to end in 2025, has made minimal headway despite access to ample resources.
The provincial department of roads and transport confirmed to Sunday World that only 10% of the project has been completed.
However, Mjwara’s lawyers have said that the project was not abandoned, operations are still underway.
Project not abandoned
“The project has not been abandoned as alleged by Ngobeni, and GMK currently has personnel and equipment on site.
“It is also worth noting that ActionSA did not bother to establish the true facts from GMK, Mr Mjwara and/or the Gauteng Department of Roads and Transport.
“ActionSA had no care to confirm the veracity of the false allegations it peddled in its media statement or to at least consider the damage the false allegations will cause.
“It is also ridiculous to allege that Mr Mjwara has bought luxury cars with proceeds from the project.
“He challenges you to provide proof of same,” added the lawyers.
Political leverage and reputational damage
Mjwara is disappointed with the ActionSA’s decision to publish the allegations.
He contended that the ActionSA is using this project and GMK for “political leverage and expediency”.
“Mr Mjwara wishes to place on record that he has spent many years working hard to build GMK and to penetrate a space historically reserved for the so called “big” construction firms and contractors.
“No one will deter him in his work. He leads a quiet and reserved life away from the prying eyes of the public and he wishes for this to remain the same.
“GMK is a reputable business which employs over 500 individuals.
False statements
“GMK also has other work and projects elsewhere in the republic as it is free to engage in economic activity.
“ActionSA and Mr Ngobeni’s media statement is littered with false and defamatory allegations which are vehemently denied by GMK and Mr Mjwara.
“To this effect a formal legal notice to retract has been sent on 8 November 2023 to ActionSA and Mr Ngobeni,” said the lawyers.
ActionSA unfazed
The letter of demand did not deter the ActionSA.
In a responding letter which we have also seen, the party refused to apologise.
“We are instructed not to litigate by correspondence.
“We will therefore not deal with each and every allegation contained in your letter.
“Our failure to do so, at this juncture, must not be construed as an admission of the truth or correctness thereof.
Denial of wrongdoing
“We reserve our clients’ rights to deal with the unanswered allegations at the right time and in the appropriate forum.
“We are instructed to record that our clients deny that either of them, separately or jointly, have wrongfully published any defamatory statements.
“Our clients maintain that any statements made were, inter alia, truthful and published for the public benefit,” the letter reads.
Legal process welcome
The party asserted that they would stick with their findings and would welcome any legal processes.
“Should your clients insist on proceeding litigiously, our clients welcome the opportunity to publicly ventilate the facts of this dispute…
“We confirm that we are mandated and authorised to receive the summons on behalf of our clients at our offices situated on Ground Floor, 158 Jan Smuts Offices, 9 Walters St, Rosebank, 2196.”
