A police station in the Free State has been under renovation for eight years and has cost the taxpayers an astounding R62 million.
This is according to the Public Works and Infrastructure Minister Dean Macpherson who was forced to disclose the information to parliament after questions were posed to him by Economic Freedom Fighters (EFF) MP Sharon Letlape.
The Park Road Police Station in Bloemfontein has cost the state R62,856,601 so far and has yet to be finalised as it has been hindered by issues with the project’s contractors.
The minister explained that a construction company called Soaring Summit Development had been given the project in 2017.
“The reason for the delay in the completion of this project is due to the fact that the initial contractor appointed in 2017, Soaring Summit Development could not complete the project due to poor performance on-site and during 2019 they opted to cede the contract to another construction company namely, Ikaheng Plant Hire Developers,” Macpherson said.
Unfortunately, Ikaheng Plant Hire Developers could not proceed with the project from the onset and opted to terminate the appointment.
The project was then handed over to Mpfumelelo Business Enterprise but again the project experienced several issues and the contract was terminated in April 2024.
The minister said that the Development Bank of Southern Africa (DBSA) is the implementing agent, and is currently in the process of procuring the replacement contractor after the termination of the current contractor.
The ministry, through the DBSA, is in the process of recovering the costs suffered due to the termination of the contractor, which did not complete the project.
“The DBSA through their legal department has engaged the contractor to recoup the amount of R 22,314,111 suffered as final damages,” Macpherson added.
Free State in the dark
The Park Road Station is not the only issue facing the province.
Last week, Eskom issued a disconnection notice for bulk electricity supply to Tokologo Local Municipality in the Free State.
The municipality has not paid Eskom over R300 million and is heavily indebted to the utility.
“Should Eskom proceed with the disconnection, bulk electricity supply to Boshof, Seretse, Dealesville, and Hertzogville will be interrupted daily from January 2025 for a set number of hours per day,” Eskom said.
The utility said that the municipality owes them R328,711,887 for the bulk supply of electricity, excluding the current account of a further R3,682,099, which became due and payable in November.
The last time Eskom received a payment from the municipality was in October 2021 for a mere R150,000.
The utility added that it chose to proceed with the possible disconnection to protect the national interest and provide a sustainable supply of electricity to support economic growth in South Africa.
IOL BUSINESS