Johannesburg - The North West government has terminated a R137.5m tender
contract with a construction company due to its "poor performance",
the provincial public works department said on Wednesday.
Ilima Projects-Tsoga Developers Joint Venture was awarded the
tender to build a government office complex in Vryburg, said
spokesperson Matshube Mfoloe.
"The decision to terminate the contract was informed by the
company's poor performance on the project and their failure to meet
targets as agreed in their 24-month contract with the department,"
said Mfoloe.
The start date for the building of the office was July 25 2006,
and the expected completion date was July 25 2008.
"They did not finish on time and requested an extension, which
was granted. They were supposed to at least finish the project by
October 12, this year.
"Two months after the new deadline, they still have not finished
the work," Mfoloe said.
He said the stalled project had been compounded by numerous
stops and starts in the past two years with the department nearly
terminating the contract last year.
The decision to show the joint venture the door followed a stern
warning by public works MEC Mahlakeng Mahlakeng to other
contractors that there would be no room for non-performance or
shoddy workmanship.
"All contractors must begin to perform or risk being shown the
door. We will be ruthless on under-performing contractors who waste
valuable time and public funds and in so doing compromise
government's ability to deliver services to the people," said
Mahlakeng.
The department was expected to set-up a professional team to
assess the balance of work at the stalled Vryburg project.
"This would give the department options to consider as a way
forward in the next few months.
"These may include going on an open tender for the completion of
the remainder of the work still to be done in the new year," said
Mfoloe.
Meanwhile, Mahlakeng confirmed that Ilima Projects-Tsoga's
performance would be closely monitored at the 200-bed hospital in
Brits.
The same company was awarded a R465m contract by the department
in July 2008 to build the health facility for the provincial health
department in the Bojanala District.
He said the action against the company had nothing to do with
the budget pressures his department was experiencing at the moment
in the roads directorate.
This comes barely a week after Mahlakeng announced that the
provincial government had been hit by a multi-million rand scandal
related to road projects that might have been improperly and
fraudulently awarded.
"I can confirm that a number of contracts issued by the
department for several road projects in the province may have been
improperly and fraudulently awarded," Mahlakeng said in a statement
last Wednesday.
Comment from the company was not immediately available.
- Sapa