Major Free State roads contracts delayed
Several lucrative roads contracts in the Free State are marred by disruptions and delays largely due to political interference and unrealistic contractual requirements. This came to light during oversight visits the Free State Legislature’s Portfolio Committee on Infrastructure conducted across the province last week.
1. The controversial R261 million P44/1&2 Deneysville to Jim Fouché road rehabilitation project has been underway since May 2016. The extended delays on the 44km stretch of road motivated the community of Deneysville and Oranjeville to submit a petition to the Legislature due to the lack of progress. The delays have seen the thriving tourism industry in the area grind to a complete halt. Occupational Health and Safety regulations at this project has been flouted which have resulted in the deaths of six workers since the inception of the project. The Department of Police, Roads and Transport briefed the committee that progress on the project stands at 70% with a projected completion date of May 2019. The DA believes that this is not an accurate estimate of progress, and is an extremely ambitious target which is unlikely to be achieved. Meanwhile the once delightful Jim Fouché resort stands abandoned. Many tourism businesses in Oranjeville are closed or operating on skeleton staff, hoping that one day in the future tourists will again be able to reach this unique destination.
2. The R256 million road rehabilitation project for the 50km stretch of road between Vredefort and Viljoenskroon awarded to Sedtrade in September 2017 has seen several major disruptions due to labour disputes and challenges with borrow pits. Progress here is at a mere 35% yet the Department is adamant that the project will be completed by July 2019. Farmers in the area have been terribly frustrated, first by the state of the roads in the area, and now by the slow progress of the project.
3. The R168 million P33/2 Bothaville to Viljoenskroon project, awarded to Phezulu Plant in October 2017, only got underway in January 2018. Since the very beginning this project has seen community protests and disputes about the project in Bothaville, to the extent that the project, which would have started in Bothaville, had to eventually be launched at the Viljoenskroon end. This leaves the appalling section of the road which passes the Nampo Site still in an extremely hazardous condition. This 22 month long project is only at 31% completion 12 months into the project life cycle.
4. Phezulu Plant was awarded another R184 million contract for the rehabilitation of the 48,6km road from Wesselsbron to Hoopstad in September 2017. Construction could only start in January 2018 due to community unrest related to the employment of labour and sub-contractors. After 13 months of the estimated 22 month long project, progress is only at 21%.
It appears that across all roads projects there is a tendency for strong political interference, especially with the allocation of EPW job opportunities. The allocation of these job opportunities happen at the local government level, at the behest of ANC mayors. There are strong allegations that EPW job opportunities are awarded to loyal ANC cadres. The process is not fair which have resulted in several labour related protests surrounding the projects. EPW workers have also been demanding a minimum wage of R175 per day instead of the R115.
Main contractors are also obligated to assign 30% of the contract work to subcontractors identified by the Department through their Contractor Development Programme (CDP). This programme is also open to political manipulation. All the identified subcontractors fall within the Mangaung area, which creates conflict with other subcontractors across the province. At the Wesselsbron/Hoopstad project the Department was forced to appoint two unregistered CDP subcontractors to the tune of R13,8 million each. In addition, main contractors are left hamstrung by subcontractors appointed by the Department who lack the skills and the machinery required for technical roads construction. Contractors are also frustrated by payment delays by the Department, negatively affecting their cash flows.
While the DA welcomes any major infrastructure projects underway in the Free State, it is unacceptable that these projects are suffering continuous delays which have a negative impact on the local economies as well as severe cost escalations which the Department can ill afford.
The Free State economy is in desperate need of an upgraded roads infrastructure. The DA in government will completely overhaul the tender system, to ensure transparency and affordability, institute a fair and equitable EPWP system that will benefit all those who are unemployed regardless of political affiliation and implement a proper subcontractor development programme that is above board and that will support the development of small to medium enterprises as part of a holistic approach to grow the Free State economy. Most importantly, a DA government will implement effective project management to ensure that projects are completed on time and within budget.
Statement issued by Leona Kleynhans, DA MPL, Free State Legislature, 25 September 2018
