Auditor-General must investigate Jabulani Hospital tender

Note to Editors: The following comments were made by DA Spokesman in the Standing Committee on Public Accounts (SCOPA), Dr Dion George MP, in Soweto, Gauteng, during a picket outside the Jabulani Hospital. He was joined by DA Shadow Minister on Health, Patricia Kopane MP, and DA MPL in Gauteng, Jack Bloom MPL. 

I will today write to the Auditor-General, Terrence Nombembe, requesting him to investigate the delays in construction of the Jabulani Hospital in Soweto and the circumstances surrounding the awarding of the tender for its construction. I will also write to the Chairperson of the Standing Committee on Public Accounts (SCOPA), Themba Godi, requesting that he summon both the Minister of Health, Aaron Motsoaledi and Gauteng Premier, Nomvula Mokonyane to Parliament to account for the reasons for the delay.

The contract for the construction of the Jabulani Hospital was initially awarded in 2006 with the deadline for completion set for 2008; however five years later, the project is still not complete. 

When SCOPA conducted an oversight visit in September last year, yet another deadline was set for 1 April 2013 and it has not yet been met. To date, the cost of the project has doubled from R335 million to R680 million and the residents of Soweto continue to wait for a hospital promised to them 7 years ago.

According media reports, it is alleged that the tender was awarded as follows:

• The Gauteng Department of Public Works published a tender notice for the construction of the Jabulani Hospital (also known as the Zola Hospital) in 2006. The project would comprise of a multi-storey 300 bed District Hospital with 120 step-down beds.
• The tender was awarded to Ilima Joint Venture on 10 May 2006 following an open evaluation and adjudication process. The project was to cost R335million and due to be completed at the end of May 2008.
• At the end of 2008, it became clear that Ilima would not be able to meet the deadline. However, despite this, the Department entered into a new contract with Ilima without an open tender process. A new deadline for completion was set for 2010. At this stage, the cost of the project had risen to R480 million.
• Following the leaking on an internal forensic investigation to the press, it emerged that Ilima Projects was not in a good financial standing and not in possession of a tax clearance certificate. The Department then took the decision to cancel the contract with Ilima.
• In 2009, the tender was then issued to the next best contractor on the original bid list - Maziya General Services - and a completion date set for the end of 2011.
• According to media reports, a subsidiary of Maziya General Services, Bahlodi Housing, had at the time been blacklisted from receiving any government tenders and was facing a R58 million lawsuit by the Gauteng Department of Housing for failure to deliver low-cost houses.
• When SCOPA conducted a site visit late last year, it was informed the hospital would be complete by 1 April 2013.

To date, we are not sure whether a new deadline for the completion of the project has been set. The residents of Soweto continue to wait.

The financial mismanagement of such projects and many others have been allowed to persist without any consequences. 

The Auditor-General must investigate the circumstances surrounding the awarding of the tender if any wrong-doing is discovered; those responsible must be held to accountable. Minster Motsoaledi and Premier Mokonyane must appear before SCOPA to explain why the project has been delayed and what steps will be taken to deliver on the promise made to the residents of Soweto 7 years ago.

Issued by the DA, April 12 2013

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