NWest road companies paid, probe continues

BLOEMFONTEIN - The two road building companies Kaulani Civils and Moseme Construction, involved in a dispute with the North West roads department, have been paid, the department said on Wednesday.

"We confirm today (Wednesday) that payments totalling R70.5 million due to the two road construction companies we have a dispute with regarding their purported appointment, were processed yesterday (Tuesday)," Matshube Mfoloe said.

Kaulani Civils was paid R35 million on Tuesday and proof of payment was faxed to their offices and to their attorneys.

Mfoloe said R35.5 million would be paid to Moseme Construction by Wednesday.

"Included in our offer, was for Moseme Construction to complete

the Sun City to Phokeng road project, on a without-prejudice basis,

pending the finalisation of investigations by various law

enforcement agencies."

Kaulani and Moseme are both being investigated after the North

West roads department suspended three of its senior officials last

November.

A forensic investigation was also launched into the provincial

department's dealings.

Mfoloe said the officials had been charged and a case registered

with the police.

The department's chief director of roads Eddie Thebe, department

head Nic van Staden and chief financial officer Kweku-Odame Takyi,

were scheduled to answer to a litany of charges, which included the

irregular appointment of road construction companies.

Their hearing would take place between March 22 and April 19.

Mfoloe said the investigations were currently in the hands of

various police agencies and would continue despite the payments.

Mfoloe said the payments did not translate into backtracking

from the department's own findings, as corroborated by forensic

auditing firm PriceWaterHouseCoopers.

"We are of the view that the purported appointment of Kaulani

Civils and others was horrendously flawed, making a mockery of

procedures as stipulated by Public Finance Management Act."

Mfoloe said Moseme Construction made a commitment to the

provincial government to finish the Sun City to Phokeng road

project by May 11.

The department was sure that it could hand over the road to

soccer's governing body Fifa by May 21.

- Sapa