NO TRUTH IN ANC CLAIMS OF A CONSTRUCTION SCANDAL

In a statement yesterday, the ANC's Cameron Dugmore and Marius Fransman, launched yet another unsubstantiated attack on the DA-run Western Cape government, and the awarding of a construction contract by my department, to Filcon.

They claim "scandal" to an extent only synonymous with an ANC government, certainly not with this one. It is a lie that this government has entered into contracts with Filcon to the value of R610 million, when in fact, Western Cape Government awarded a contract valued at R116 million for 3 replacement schools, of which R35.2 million had been paid.

The facts of the matter are that:

A reputable contractor has run into cash flow problems and filed for business rescue, creating delays in delivery affecting a wide range of clients, of which provincial Public Works is only one.

In 2013, Filcon successfully bid and was awarded a single contract for the construction and completion of replacement schools in Atlantis (Westfleur and Parkview Primary Schools) and Willemsvallei Intermediate School in Porterville, during 2014.

The awarding of the tender to Filcon was subjected to the necessary scrutiny checks as required by law. These include;

1. Compulsory registration on the WCSD (Western Cape Supplier Database) according to the Provincial Treasury Instructions.

2. In case of contractors in the construction industry, a compliance check to ensure registration with the Register of Contractors (as per CIDB regulations), and a check on the Register of Projects for poor performance and record on past and current projects.

3. SARS check to ensure supplier is in good standing.

4. CIPC (Companies and Intellectual Property Commission).

5. The National Treasury Databases.

6. Due diligence and risk assessment.

7. BBBEE Accreditation with the Department of Trade and Industry.

All checks were done before the Westfleur and Parkview Primary School sites were handed over.

Regular inspections are conducted by the project teams as work proceeds. Payments are made to the contractor in stages, following the issuing of payment certificates certified by the principal agent. Amounts can and are retained, and penalties incurred for non-performance.

In total, R35.2 million was paid to Filcon, with further millions being held back by the department, for work undertaken by the contractor.

During visits, work is inspected and approved. Work must comply with contractual standards, and within the stipulated time.

If there is a failure by the contractor to perform in terms of the contract fully, the department may claim performance in terms of the contract, and also move to finally terminate and cancel the contract, and the contractor removed from site.

The department holds substantial guarantees from independent guarantors in respect of these contracts, and is therefore unlikely to lose any money whatsoever on the contract.

A new contractor will then be appointed to complete and deliver the work.

The tender adjudication processes in this province are fair and free from undue influence and corruption, contrary to the ANC's claims. When construction projects are adversely affected by poor performance from contractors, we take all actions necessary to ensure that the situation is speedily remedied and work is then delivered; in time, and at the necessary and requisite standards.

We welcome any investigation into the awarding of the contract to Filcon, and will gladly provide all documents pertaining to the process. I suspect, however, as is the case with ALL of the ANC's outlandish and slanderous claims about this government and the DA, the ANC has very little interest in the truth. During his term as MEC for Education in the previous ANC administration, Mr Dugmore built 36 schools, comparing poorly with the 70 that will have been built under the DA in the same amount of time. Of those 36, 4 were the subject of an ANC investigation for poor quality; excessive cost and very late delivery. The investigation was carried out by an independent expert, Mettler, who was so appalled that his report called for criminal action, which action the ANC government did not take.

Messrs Dugmore and Fransman are far more preoccupied with being the stars of the latest episode of "Election Silly Season", rather than presenting a compelling offer the voters of the Western Cape. If their shoddy history in ANC governance in this province is anything to go by, such an offer simply does not exist.

Statement issued by Western Cape Minister of Transport and Public Works, Robin Carlisle, May 2 2014

Click here to sign up to receive our free daily headline email newsletter