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Premier Mabuza demands substantiated evidence before paying Rob Ferreira Hospital contractors

14 August 2013

Mpumalanga Premier David Mabuza has demanded that the consultants and the implementing agents involved in the renovation and upgrading of the Nelspruit-based Rob Ferreira Hospital should re-submit all tender documents to the office of his provincial director-general for re-examining.

This is because of a long dispute which involves the non-payment of a unauthorised variation of R12 million which the contractor demands from the provincial government.

The contractor, Ruwon Construction, suspended work in June last year [2012] due to non-payment for work done. The contractor was even alleged to have locked the wards at the hospital in demand for his payment. He dismissed the rumours saying the wards were not yet safe for utilisation by the public.

At a special meeting today [Wednesday, 14 August 2013] Premier Mabuza was told by the implementing agent, Independent Development Trust, that the Phase 4D: work of upgrading a paediatric ward and other three wards had been suspended due to non-payment of unauthorised variations which were caused by under-measurements and mis-measurements on the bill of quantities for construction.

Initially, the contract was at a value of R27 Million when the site was handed over and construction commencing in March 2011. The expenditure to date is at R34. 8 million due to unauthorised variations. Work was expected to have been completed at the end of July last year [2012] but was since been suspended in June 2012 at 83 percent completion.

The scope of work had also been reduced by excluding the paediatric ward due to unavailability of funds. A request for additional funds to cover the unauthorised variations and to complete the projects to the value of R17 million was made and only R5 million was approved to date. The difference was subject to further evaluation and approval by the provincial Treasury as the total variation exceeds the 20 percent limit.

The Premier was however not satisfied with the proposed solution in resolving the problem that the provincial Treasury appoint an independent consultant to re-measure the work which was not calculated in the initial tender to prove if indeed R12 million was still outstanding. He said it would be fruitless expenditure.

“We need collaborating evidence that indeed the work was done before we pay. As we speak there is nothing to substantiate for the R12 million. My Office is going to step in; both the implementing agent and consultants should bring all the information to the office of the director-general.
“Appointing a new person will be a fruitless exercise; the director-general and her technical team will inform me about her findings in order for the executive council to make an informed decision. We must stop being naïve when each time we have a problem we opt to go outside, I cannot afford to pay twice,” said Mabuza.

The Premier demanded that the documents be submitted in a week’s time citing that the work should be speedily completed in order for the public to utilise the facilities.

“In the interest of the public out there, we must complete this work as soon as possible and we must account for every cent we use. I want proof that the work indeed escalated from the initial plans. We must work together and come closer to the solution for the sake of our people,” said Mabuza.

The Premier also lashed out at the department of Public Works Roads and Transport for not having an internal capacity to measure the outstanding work and confirm if it was worth R12 million. He said they should have internal professionals and not rely mainly on consultants as it was costly to the taxpayers.

Mabuza further said he was not satisfied with the contractor’s attitude of abandoning the work instead of approaching the client [government] for the solution.

“It is incorrect to abandon the site. If there are problems, we must be able to resolve them amicably because at the end of the day people out there would look at government as having not delivered the service. We have an employer-employee relationship here, these matters could have been resolved long time ago,” said Mabuza.

He added that the completed facilities should be handed over to the public while resolving the differences.

Mabuza further visited both completed and uncompleted wards inspecting the work done. He was however met by angry patients who complained that they had been in the queue for a long time without being attended to.

Issued by Zibonele Mncwango
Spokesperson: Mpumalanga Premier
Mpumalanga Provincial Government
Tel:
(013) 766 – 2453
Mobile: 079 491 0163
E-mail: zmncwango@mpg.gov.za


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