Fury over sudden cancelled contracts

Local contractors and suppliers sidelined in shock move

Local professionals, building suppliers and contractors are up in arms over the sudden loss of several multi-million rand contracts to build schools. According to concerned community members who approached the Zululand Observer, the Department of Public Works (North Coast Region), has suddenly and without explanation reneged on contracts issued to local project managers, in favour of Durban-based companies. The Department of Education requested the construction of various new schools, including New Empangeni Rail Richem High School, New Birdswood Secondary School and KwaMbonambi Timbers Primary School. The Department of Works initially appointed local firms to render service up to and including the final stages of the projects. However, after completion of the initial phases, the contracts were reportedly taken over from the Department of Works by the Independent Development Trust as implementing agent. The appointed consultants were instructed to hand over all documentation in their possession. According to sources, local companies were not invited to tender for construction and according to the best of their knowledge, the tenders were never advertised in local newspapers. Instead, the same Durban-based company has been appointed as project managers for at least two of the sites. The contracts are estimated to be valued at between R21- R28-million per school. It is believed that the Department of Education instructed the suspension of the contracts, but the reasons remain unknown.

Retrenchments
Construction has already started at Empangeni and Richards Bay. Many professional firms, who had planned in expectation of the remuneration, are now faced with possible staff retrenchments. This will have considerable impact on the already strained local economy. Many also voiced the concern that workforce and materials may be imported from Durban, at about twice the cost of the original contracts. Professional fees payable to the appointed Durban-based civil, electrical, structural and geotechnical engineers, quantity surveyors and land surveyors, could also escalate considerably. Community members are also angry about the fact that the increased budget will be sponsored by government funds and therefore come out of taxpayers’ pockets. John Macfarlane of the Zululand Chamber of Commerce views this in a serious light. ‘Our mandate is to protect local businesses and to ensure that the local economy benefits,’ he said. At the time of going to print, comment to clarify questions raised, was still awaited from the Department of Education.

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