An Eastern Cape municipality has been taken to task over its illegal decision to pay
R16-million to two companies that claimed to have done the same job in a failing water project in Bizana.
The irregularity in the Alfred Nzo District Municipality was picked up by the provincial Department of Cooperative Governance and Traditional Affairs (CoGTA), demanding answers from the district municipality.
This is contained in a letter that was written to the municipality, led by Mayor Vukile Mhlelembana, on January 22, but almost three months later, it has gone unanswered.
Municipal infrastructure grant
The payment in question was meant for the Mbizana water scheme worth R52-million, which is funded by a municipal infrastructure grant (MIG).
The district municipality first registered Sokhani Development as the appointed consultants for the scheme. And it later brought on board Gilgal Consulting Engineers. That was when the issue of duplicate payments started.
Both companies were paid for “preliminary designs” in the same scheme facing challenges and unexplained delays.
“According to the MIG-MIS records, a total of R9 670 010 has been disbursed to Sokhani Development & Consulting Engineers. Furthermore, five payments amounting to
R27 382 000 are recorded under Sokhani Development. But they were actually disbursed to Gilgal Consulting Engineers.
Municipality ordered to reverse payments
“To rectify these discrepancies, the municipality has been advised to reverse the payments. To also formally register Gilgal Consulting Engineers in the MIG-MIS, and reallocate the incurred expenditure under the correct service provider,” Eastern Cape CoGTA wrote to the district municipality.
The department also asked the district municipality to explain the duplication. It needs answers on why the two consulting engineers were paid for the same item.
“The disbursement of R9 670 010 to Sokhani Development pertains to preliminary designs. Whereas an amount of R7 467 387 was allocated under Gilgal Consulting Engineers, for the same item. The municipality is better positioned to explicate why the two consulting engineers were paid for the same item.”
Municipality denies wrongdoing
Spokesperson of the district municipality, Luncedo Walaza, vehemently denied the accusations. He denied that they paid two companies for the same item, but provided no information to back up his denial. This despite the glaring evidence presented by the department.
“The municipality will issue a statement in this regard. It will clarify the matter that the municipality never paid two service providers for the same project,” Walaza said in response to the Sunday World questions.
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