Govan Mbeki Municipality needs more money for sewer project

The mayor of the Govan Mbeki Municipality, Nhlakanipho Zuma, reported to the council on March 31.

He said a budget maintenance application of R13.4m needs approval to cover the shortfall in the Eendracht sewer network, pump line and pump station installation project.

According to Zuma, the project launched in 2021 with an approved budget of R30.2m through the Municipal Infrastructure Grant.

Construction was to be completed by October 2022 at an estimated cost of R26m. To date, more than R28m has been spent.

Zuma said the project aims to benefit about 285 residents in Eendracht, an area with no formal sewerage network.

“The community relies on municipal septic tanks that must be sucked by trucks, which frequently break down, causing sewage overflowing into yards and streets, posing serious health risks.

“The initial contractor, appointed at R22.8m (excluding VAT and contingencies), failed to meet the contractual obligations for time, cost and performance, leading to contract termination,” said Zuma.

Zuma said during excavation, unforeseen conditions increased project costs, including:
• higher-than-expected hard rock excavation (initially estimated at 3.030m³);

• fractured dolerite rock, requiring expensive water-retarded explosives due to a high water table.

• denser drilling patterns, sloped drilling and widened trench widths due to excessive rock seams.

The lack of contingency funds prevented financing these additional costs.

“To mitigate the shortfall, the municipality allocated R5.2m in co-funding and retained R2.4m from the previous contractor, totalling R7.6m in available funds.

“Additionally, the municipality is claiming performance guarantees (insurance) worth R2.6m. The remaining scope of the project will be completed in the 2024/2025 and 2025/2026 financial years,” explained Zuma.

The project was re-advertised, and the tender closed on September 27, 2024.

“The Bid Evaluation Committee has recommended a suitable contractor, with the total project cost now estimated at R21m, VAT inclusive,” said Zuma.

Zuma asked that the council submit a budget maintenance application to the Mpumalanga Department of Co-operative Governance, Housing and Traditional Affairs to secure the R13.4m shortfall necessary to complete the project.

The DA in the Govan Mbeki Municipality disagreed with the mayor. DA Clr Portia Mpatlanyane said the municipality should account for the missing money.

“We were shocked when the mayor presented to us that the project budget was R30m when he said the project cost was R26m at the sod-turning ceremony. Which amount is correct?

“This means the municipality paid the contractor for doing nothing. Eendracht residents are left with only dangerous open trenches and roads left in misery by the contractor.

“The mayor said only R7m was left for the project. Where is the rest of the money? Millions of rands for the project have gone down the drain, and he is telling us to now apply for a R13m shortfall for the project’s completion.

“The workmanship on the project was of poor quality. The municipality did not receive value for money, and residents are still without a functional drainage system,” said Mpatlanyane.

Mpatlanyane said this showed that the contractor failed to do their duties despite being paid millions. The DA demanded a scope of work for the project before the newly appointed contractor could resume work.

The disgruntled residents had blocked off the gates to the previous contractor’s site with burning tyres. They were fed up with the contractor’s shoddy work.

Mpatlanyane said her party is petitioning to hold the municipality accountable for the sewerage project funds they believe it misused.

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