More than R19m blown on irregular expenditure for incomplete Albertina Sisulu fire station

07 October 2021 - 06:00
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The fire station remained incomplete despite construction starting in 2016. Stock photo.
The fire station remained incomplete despite construction starting in 2016. Stock photo.
Image: 123RF/leaf

More than R19m was spent on items for the construction of the Albertina Sisulu fire station without obtaining the necessary authority, an investigation conducted by an external auditor appointed by Ekurhuleni’s internal audit department has found.

Ekurhuleni disaster and emergency services (Dems) spokesperson William Ntladi said the investigation found irregular expenditure of more than R19m on items that were not part of the initial bill of quantities. 

The irregular expenditure was first highlighted by the DA's Ekurhuleni mayoral candidate, Refiloe Nt’sekhe, who said that the cost to complete the station was budgeted at R20m but had ballooned to a staggering R60m.

“Like many other municipal infrastructure projects that I have visited in Ekurhuleni, delays to this project have had serious and adverse effects on residents, while costs have spiralled out of control — with little or no explanation.”

Nt’sekhe said when she visited the sites it was found that the fire station remained incomplete despite construction having started in 2016.

“The completion date for this so-called 'flagship project' has been repeatedly pushed out. The station is expected to be completed in the second quarter of this municipal financial year, yet given what I have seen, it is unlikely to be completed on time and will undoubtedly be pushed out to a further date,” she said.

Ntladi said the site was handed over to the initial contractor in 2016.

“The disaster and emergency services department began with the tendering process to appoint a new construction contractor to complete the project in 2019, after the contract of the initial contractor was terminated due to irregularities.”

Ntladi said the department appointed a new contractor in September 2019 after approval of the qualifying bidder by Ekurhuleni's bid adjudication committee.

Ntladi said the previous contractor was awarded a bid for R32,734,664-, excluding VAT, contingencies and escalation for construction of the Albertina Sisulu Corridor Fire Station. 

“According to the new bill of quantities, the project was increased to R60m to complete the construction of the new fire station.  Taking into account that [according to the investigation conducted by external forensic auditors who were appointed by the internal audit department], it was reported that there was irregular expenditure of more than R19m which was spent on items that were not part of the initial bill of quantities, without obtaining the necessary authority.

“The newly appointed contractor had to issue a new bill of quantities, which would obviously be more than the initial bill of quantities because the price was in line with the new tariffs and rates of the building materials almost three years after the initial tender price.”

Nt’sekhe charged that the city had “dragged its heels” on the completion of the fire station and Kempton Park reservoir.

Ntladi, however, said Kempton Park residents were not threatened by the delay.

“The department is able to fend off any threat that might be posed by the fires in the Kempton Park area,” he said.  

TimesLIVE


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