R165m: that’s how much Emfuleni has wasted on a trio of non-starters

A world-class sports facility that’s just an abandoned field; a derelict, unfinished licensing test centre; and a taxi transport hub that’s an empty parking lot.

These are just three of the monuments to waste in the stricken Emfuleni municipality in the heart of the Vaal Triangle, on which R165m has been spent by local, provincial and national government.

The sports centre

Just more than R44m was budgeted in 2015 for the world-class multipurpose sports centre in Evaton township, according to Gauteng cooperative governance and traditional affairs (Cogta) MEC Lebogang Maile.

It was due to be completed by 2018, but little ground has been broken. 

Daniel Makwaise, a resident of the area for more than 25 years, said the dusty road that cuts through the area earmarked for the complex, and the route to shops and a school, has become a canal of criminal activity.  

“There are no lights here and people get robbed on their way home at night all the time,” he said. 

Makwaise said the project is just another way of “stealing” from residents.

Mayoral spokesperson Lebo Mofokeng said the first phase, involving earthwork services such as sewerage and levelling, had been completed.

“The second phase, which will focus on the buildings and sports facilities, was halted because of the reprioritisation of funds to implement water and sanitation projects in response to other challenges” after an agreement with the department of cooperative governance and traditional affairs.

“The municipality will continue to engage with Cogta on the funding required, which must be allocated to implement phase two in the next financial years,” said Mofokeng.

A company named Sedtrade was paid R12.1m, excluding VAT, to complete the first phase. 

“The term of the tender has since been completed and payment certificates were signed off by the municipality’s appointed cost consultants,” the company said in a written response to the Sunday Times Daily questions. 

“We have no further contract with Emfuleni Municipality or further involvement in this project.”

Gibb Engineering, the municipality’s appointed design consultant for the project, was paid almost R11m, Maile told the provincial legislature in 2019. Sunday Times Daily was unable to track down the company for comment. However, municipal spokesperson Makhosonke Sangweni said “the deliverables were achieved”.

The licensing testing station

A few kilometres away, in ward 37 Sebokeng, is another derelict project, a “driver learning testing centre”, according to a rusty sign on site. 

The only activity inside the brick shell is two security guards sitting on plastic crates, playing on their cellphones.  

The project was initiated by the Gauteng department of infrastructure development (GDID), but Gauteng roads and transport has now become involved and MEC Jacob Mamabolo told the provincial legislature in March that the project began in the 2013/14 financial year, with an initial completion date of July 2016.

He said a contract with Makholi Trading was terminated in August 2019 after poor workmanship and site abandonment, after R54m had been paid out.

Directors Miranda and Zamokuhle Mkhwanazi did not respond to calls and voice messages from Sunday Times Daily.

The engineering firm, Pro-Plan Consulting Engineers, was paid R14m to draw up the plans.  

The company’s landline number went unanswered, as did the cellphones listed for the directors, Roy and Sharon Govender and Albert van Wyk. Questions sent were not acknowledged or responded to.

“The engineering firm and building contractors were originally appointed by the (GDID) for a capital cost of around R63.5m, but the project expenditure ballooned to over R78.5m following variations and extension of time,” Mamabolo said in documents submitted to the legislature. GDID spokesperson Bongiwe Gambu confirmed this, adding that on March 23 a letter had been received from the head of department at the provincial department of roads and traffic “requesting that the project be transferred back to DRT. A transfer process was concluded and GDID does not have a role to play in the completion of the project,” Gambu told Sunday Times Daily.

​Mamabolo told the legislature that during the final quarter of 2017/18 Makholi started experiencing cash-flow problems, then lodged a formal dispute against the GDID for nonpayment. A formal resolution process was instituted, during which the contractor abandoned the site, which led to it being vandalised. The contract was subsequently terminated. 

Mamabolo said a new tender to complete the project was published in March 2020, with a closing date for applications of July 2020. But due to Covid-19 restrictions and GDID being unable to find a successful bidder, the tender was cancelled in December.

Mamabolo said the project had been a “grave disappointment”.

Sebokeng resident Prince Makwhe said the community was upset that the centre had not been completed.

“We were promised jobs and an empowerment tool for community members to obtain their drivers licences. Now we all have to go to town to do so, and with unemployment at record highs, nobody has the transport fees. The situation affected the community in a bad way. We want those behind it to be held accountable.”

The public transport hub

The third failed project, a joint venture between the province and Prasa, is the Vereeniging taxi rank.

It included a train station, an intermodal taxi rank within the precinct, the upgrade of existing facilities and a temporary taxi rank. 

Today, after R78m has been spent, it is an overgrown dirt patch, with shaded parking bays the only testament to any money spent.

In a written reply to questions in the provincial legislature in 2019, Mamabolo said Prasa had appointed Aecom/Khuthele Projects as consulting engineers in 2012. The company was responsible for the design and supervision of construction.

However, after several extensions to its deadline, the last being November 30 2017, the firm left the site and declared a dispute with the rail agency due to outstanding payments. The contract has since expired.

Ndlovu said Prasa had paid just more than R14m to the company.

Approached for comment, Aecom director Darrin Green told Sunday Times Daily that they were unable to comment due to legal proceedings against Prasa.

But Ndlovu denied any litigation was under way.

Mamabolo told the provincial legislature that his predecessor, Ismail Vadi, had, in 2013, hired a second service provider, Moreteng Investments, to handle the construction portion of the project. The original contract was for R61.6m, but the amount paid was R64.4m. 

Cost overruns and “delays in completing the project were directly impacted by change of scope, lengthy relocation of operations to the temporary taxi rank, interruptions by local labourers and subcontractors, as well as a persistent sewer spillage on to the construction site from local pipelines,” Mamabolo said.

The company eventually suffered financial difficulties, was placed in business rescue in July 2018 and subsequently liquidated, said Mamabolo.

He told Sunday Times Daily: “When I came into office [in May 2019] we started the process of revitalising the initiative and took the decision to entrust this project to the Gautrain Management Agency.”

Two weeks ago Mamabolo met the South African National Taxi Council and the National Taxi Alliance in Emfuleni to discuss this and “present the new look and design to the most important stakeholders”.

On the R128m wasted on the two transport initiatives, Mamabolo said the department was looking into the matter. “We can’t just sweep it under the carpet. It is public funds after all and we need to account for it, but my first priorities are to get the project back on track. 

Local resident Linah Thakathayo, 57, was an informal trader at the former taxi rank for almost 16 years, selling food to commuters.

When the original facility was demolished and moved to the temporary site, she had to close shop as the site had no form of shelter or infrastructure for her to trade from.

She said she had hoped she would be operational again in a year or two, but to date has been unable to reopen her business, she said.

“Many other informal businesses suffered the same fate,” she said.

DA MPL Kingsol Chabalala said the taxi rank had not functioned since it was constructed and the building had deteriorated due to vandalism.

“The building has deteriorated to such a state that it needs to be rebuilt,” he said. “This has led to closure of small businesses, culminating in job losses,” he added.