AG Flags water pump upgrades spending

Dihlabeng municipality pays for material not delivered on site

The auditor-general (AG) has found that millions of rand meant for material for a project to upgrade the raw water pump station at a dam in the Free State could not be accounted for by Dihlabeng municipality.

Of the R9.8m that was paid to a company to deliver material for the project in Clarens, less than R1m could be accounted for. 

The municipality in Bethlehem awarded a tender for the upgrading of raw water pump stations and rising mains at the Clarens/Kgubetswana dam in December. The project is aimed at addressing persistent water shortages problems. The tender worth R49.9m was awarded to Bruno Hlarane Suppliers in December.

However, another company Sekunjalo Piping Project was contracted to deliver material such as mild steel pipes and wedge gate valves. A site visit conducted last month found the team could not account for the material purchased.

According to a report seen by Sowetan, the municipality could only account for R947,187,75.

“Management failed to ensure that a legal process was instituted to recover the total amount paid to the supplier for the value of the material that could not be verified during the site visit and/or through the delivery notes signed by the consultant,” reads the report.

The AG said this amounted to fruitless and wasteful expenditure which could have been avoided had due diligence been exercised by the municipality.

The management should, through their legal department, recover a total amount of R8,899,475.65 relating to the overpayment on material that was not delivered on siteAuditor-general

“The management should, through their legal department, recover a total amount of R8,899,475.65 relating to the overpayment on material that was not delivered on site.”

AG spokesperson Africa Boso confirmed the municipality's audit was concluded but said he could not comment on a report that has not been tabled in council.

According to DA chief whip Eric Motloung, the residents of Clarens and surrounding areas have not had consistent water supply for years.

“The residents have been suffering because of constant water shedding in most areas [in the municipality] and the high-lying areas would even struggle to get water for some time. This has been happening even way before the project started.

“This project is supposed to get rid of any water issues in Kgubetswana, Kanana and Clarens and the dam is not big enough to supply the whole town so the [upgrade] was going to make sure that water issues in Clarens were a thing of the past.”

However, the project has been shrouded in controversy after allegations that the payment for the material was made before any material could be delivered onsite.

The Hawks in the Free State have also launched an investigation into allegations that a municipal official forged a signature to facilitate the payment to the service provider before the delivery of goods. The official has since resigned from the municipality.

Provincial Hawks spokesperson Lt-Col Zweli Mohobeleli confirmed they were investigating charges of alleged corruption, forgery and theft involving R9m.

He said the director of public prosecutions will decide whether to prosecute.

Municipality spokesperson Tshediso Maitse confirmed the matter was under investigation.

He said the false signature was only discovered after payment was made.

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