POLOKO TAU
EMERGING contractors in Soweto have sought the Public Protector’s assistance in their claim for more than R100 million in cancellation fees after Johannesburg Water terminated its Operation Gcin’amanzi project.
The Soweto Small, Medium and Micro Enterprises Contractors’ Forum is claiming R480 000 in compensation for each of more than 200 sub-contractors it represents.
The massive infrastructure upgrade project was suspended for a few months in 2008 after a legal challenge during which Phiri residents took the council to court to stop the installation of pre-paid water meters.
The forum said the main contractors were paid compensation for the period the project was stalled. Subcontractors said they then fought for payment and were paid R150 000 each by the main contractors, who claimed back that money from Joburg Water.
The multimillion-rand project was stopped after a Johannesburg High Court ruling that installation of the water meters was unfair and unlawful.
The forum’s spokesman, Desire Myezo, said only the main contractors had been paid for the termination of their contracts, while the sub-contractors were still battling for compensation.
Joburg Water resumed with the project late last year after a Constitutional Court ruling in October 2009 that there was nothing amiss with the installation of prepaid meters.
The forum said yesterday it had asked the Public Protector to intervene in the dispute.
“This matter has now been put before the Public Protector to investigate, as we believe that government officials and departments in this regard have dismally failed to discharge their responsibilities effectively, in the process compromising small contractors. We remain confident that we have a legitimate and a genuine claim with sufficient proof and motivation,” Myezo said.
“This project has since resumed in a new name: the Soweto Infrastructure Rehabilitation Programme. The fact that it has been awarded to main contractors who have benefited from its initial cancellation… and that it has been awarded without going to open tender as is required by law will be matter of interest to the Hawks and other law-enforcing agencies as well anti-corruption agencies.”
Myezo said: “Joburg Water and the main contractors have engaged in non-competitive behaviour which contravenes the procurement and supply chain procedures.”
He said the forum was aware subcontractors had contracts with main contractors and not Joburg Water.
“What has transpired was beyond contractual obligations. It was never in the contract that we’ll be paid for the time during which the project was stalled, but we fought and got paid, and the same thing should happen for the termination of contracts,” Myezo said.
He said subcontractors were also feeling the pinch of the contract terminations.
“Subcontractors were required to buy bakkies, safety wear, certain tools, and workman’s compensation registration, and they are now having their things repossessed.”
The project was resuming with some of the initial contractors, but only a few of the initial subcontractors were involved, Myezo said.
Earlier this year, the forum and its members staged protests and shut down sites, disrupting the Soweto project.
Joburg Water declined to comment on the forum’s allegations.