Public works tightens screws on ‘errant’ contractor who pocketed millions from stalled hospital project

The KwaZulu-Natal public works and infrastructure department has taken a two-pronged approach to recover millions paid to an allegedly errant contractor for a multimillion-rand hospital project.

The project at Nkonjeni Hospital in Ulundi, northern KZN, began in July 2020 and was supposed to take just 20 months to finish.

However, the work remains incomplete more than five years later.

KZN public works MEC Martin Meyer has now approached premier Thamsanqa Ntuli’s office to authorise an independent forensic investigation into the project, citing “serious irregularities, poor workmanship and possible financial misconduct”.

In a formal letter to the premier’s office, the department requested that the probe focus on:

• possible fraud or misrepresentation by the contractor;
• the authenticity of all project documentation and variation orders;
• breaches of contract terms and financial controls; and
• the contractor’s invoicing and certification processes.

He said the department has given the contractor until Friday (November 7) to explain why they believe they have met all contract requirements.

The department is also pursuing legal action to recover funds lost due to delays and poor-quality work.

He said the department had approached the courts to obtain an interdict against the contractor and would take further steps to recover wasted funds and hold those responsible to account.

Health MEC Nomagugu Simelane said the ongoing delays had put pressure on the province’s health system, especially in rural areas.

Meyer conceded that Simelane had previously indicated that her department, as a client, was not happy with the department of public works and infrastructure on this project.

“We are fully aware of the challenges inherited by this department and have never sought to conceal the fact that public works has faced numerous difficulties in the past,” he said.

“Nevertheless, we are working diligently to address these issues and improve the department’s performance.”

Meyer explained that a rapid task team had been deployed to Nkonjeni Hospital to address the initial issues, but closer inspection revealed additional safety and operational concerns.

Further attempts by individuals to pressure the department into reinstating the contractor were rejected.

“Our mandate is not only to provide infrastructure on time but to ensure it is of high quality, and it is clear that this contractor cannot deliver that,” he said.

Meyer’s call for a forensic probe has been welcomed by unions in the healthcare sector.

“We have consistently raised concerns about the state of Nkonjeni Hospital, even staging two protests to highlight the deteriorated infrastructure. Despite these conditions, contractors have continued to delay essential work,” Nehawu provincial secretary Ayanda Zulu told Sunday Times.

“This investigation must serve as a clear message to those who view publicly funded projects merely as opportunities to maximise profit. We have always advocated for a state-owned infrastructure company with permanent employees responsible for delivering these projects, rather than outsourcing to profit-driven contractors who have little interest in constructing durable, long-lasting facilities.”

Andile Mbeje, provincial secretary of the Democratic Nursing Organisation of South Africa (Denosa) in KZN, shared similar sentiments. He said the delays had placed immense pressure on hospital staff and compromised service delivery.

“Staff members have been operating in temporary structures for five years, which is unacceptable. Nurses can only attend to a limited number of patients per day, and community members, particularly emergency patients, are left waiting due to insufficient space.”

He added contractors must be thoroughly vetted before appointment, and where previous companies failed to deliver, funds should be refunded.

“The newly appointed contractor must expedite the renovation process to ensure that employees and patients can operate in a safe, functional and conducive environment.”

Preliminary findings are expected within 60 days, with a full report due within 120 days from the start of the investigation.