By Lehlohonolo Lehana.
Photo Credit:AFP.
Contractors who were paid millions before doing any work on the Beitbridge border fence have been ordered to pay back the profits they made from the controversial project.
The Special Investigating Unit (SIU) took Magwa Construction and Profteam CC to court in a bid to recover money from the R40-million Beitbridge border fence project.
The department’s national bid adjudication committee (NBAC) approved both bids for the project in March 2020.
But, soon after the fence was erected, it started to fall apart, prompting the SIU to investigate the awarding of the contracts.
The two contractors were jointly paid R21.8 million, of the R40.4 million, in advance by the DPWI for the construction of the razor mesh fence.
The SIU investigation, which uncovered a number of irregularities including the pre-payment, led to the DPWI being interdicted, prohibited and restrained from making further payments.
The R40.4-million contracts have since been reviewed and set aside by agreement between the parties.
On Tuesday, SIU and DPWI were ordered to appoint experts to compile a report detailing the Caledon River Properties and Profteam CC expenses and file it with the Special Tribunal.
In the event of a dispute in profits, the parties have been ordered to approach the Special Tribunal for an appropriate order.
Judge Lebogang Modiba ruled that it is just and equitable to apply the no profit and no loss principle in the matter.
Regrettably, the biggest loser is the State and the public, she said.
“They have been deprived of the variety of public, social and economic benefits that flow from a solid border track at the Beitbridge border and are saddled with a deficient border fence, “said Modiba.
“Further corrective measures lie in holding the officials who designed, approved and implemented the Beitbridge Border Fence Project and its related procurement process and those who failed to take the appropriate steps to enhance the integrity of the fence,” she added.
The SIU has also made disciplinary referrals to the DPWI against officials who designed, approved and implemented the Beitbridge border fence project.
The Democratic Alliance (DA) has welcomed news that the Special Tribunal has ordered the repayment of R21.8 million from the two contractors that benefited from the erection of the ‘washing line’ at the Beitbridge border fence.
The DA said this is a move in the right direction, and are calling for the Minister of Public Works and Infrastructure Patricia de Lille to resign.
This comes after a Special Investigation Unit (SIU) report found her interference in the appointment of the contractors inappropriate.
“Now that the contractors have been made to pay back the money, it raises fresh questions about her conduct as a Minister. She must acknowledge her indiscretion and resign,” said DA MP and spokesperson on Public Works and Infrastructure, Samantha Graham-Maré, in a statement.