Enquiry needed into wasted money
R2 850 000 was spent on the proposed Soweto Monorail project months after it was canned by then Gauteng Finance MEC Paul Mashatile and Transport MEC Ignatius Jacobs.
This is revealed in a written reply to my questions by Gauteng Roads and Transport MEC Bheki Nkosi.
According to Nkosi, the Powerhouse Consortium "was appointed with an instruction to perform work to undertake the construction Project Management. The project and the appointment of the consortium was approved by the then MEC Paul Mashatile: Finance and Economic Development and MEC Ignatius Jacobs: Public Transport Roads and Works."
An amount of R1.377 million was paid to Powerhouse in July 2007, R879 000 was paid in September 2007 and R594 000 was paid in December 2007.
This is outrageous as Mashatile and Jacobs announced on 1 June 2007 that the R12 billion monorail plan was "put on hold until such time as the necessary process, including consultation, had been undertaken".
This was after then national Transport Minister Jeff Radebe said that he had not been consulted, and criticized it.
Everything about this monorail project was fishy from the start. It was hatched in secret and was to be financed, built and operated by a little known Malaysian consortium.
It was easy to suspect that a small band of connected people would gain from this hugely expensive project that would done little to improve transport from Soweto to the Johannesburg inner city.
There needs to be an inquiry into why money was spent on this project even after it was put on hold. It was wasted money, and Mashatile and Jacobs need to account for it.
I have asked further questions to ascertain whether the award of the tender and the money paid to Powerhouse was above board in every aspect (see below).
NOTICE OF QUESTION
For
WRITTEN REPLY
3 March 2010
I, J B Bloom of the Democratic Alliance, hereby request in terms of Rule 120 (1), the placing of a question for written reply by the Member of the Executive Council for Roads and Transport:
Further to the reply to Question 5.TR009, will the MEC please indicate:
1. What procedure was followed in the appointment of the Powerhouse Consortium to do work on the monorail project;
2. When was this tender advertised (please provide copy of advertisements);
3. Which companies replied to this tender advertisement by the due date;
4. Why was the Powerhouse Consortium awarded this tender;
5. Whether all proper procedures were followed in the award of this tender;
6. What companies comprise the Powerhouse Consortium;
7. What was the nature of the work done by the Powerhouse Consortium;
8. Why were they paid money in July, September and December 2007 when the monorail project was officially suspended in June 2007;
9. Whether the MEC will order a forensic audit into this wasted expenditure;
10. If not, why not?
Signature: - ...................
J B Bloom, MPL
Statement issued by Jack Bloom, MPL, Democratic Alliance Gauteng corruption spokesman, March 4 2010
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