Despite shoddy work, ANC benefactor keeps picking up contracts, writes Mervyn Naidoo
|||Opposition parties have been scathing in their attack on eThekwini officials for issuing new contracts to a construction company linked to controversial businessman Jay Singh.
They’re appalled that Gralio Precast, which did shoddy work on previous low-cost and middle-income housing projects, continues to land lucrative contracts.
Gralio recently won a R22 million tender to lay access roads and provide bulk water for the first phase of the Cornubia Project, the city’s latest housing development.
Gralio’s directors are listed as Shireen Annamalay and Ravi Jagadasan, Singh’s wife and son.
The company also clinched a R72m tender to provide engineering services and top structures for 486 units at Cornubia. This was set out in a status report by the Department of Human Settlements.
Earlier this year, a Singh-linked construction company was criticised in the Manase Report for allegedly irregular spending on the Hammonds Farm and Burbreeze projects.
Singh has been convicted of bribing a city official to turn a blind eye to sub-standard construction work.
He made headlines when his Remant Alton, which controlled the city’s bus service, was run into the ground in 2009.
The IFP claims Singh continues to receive lucrative contracts because he is an ANC benefactor. The DA and the Minority Front concur with that sentiment.
“We believe Singh’s affiliation with the ruling party is the main reason he’s landing jobs,” said IFP councillor Prem Iyer, who sits on eThekwini’s public accounts committee.
MF executive committee member Patrick Pillay said, “It is questionable when contracts continue to be given to companies that have built structurally unsound houses and placed an extra cost burden on ratepayers. The MF is aware that city manager Sibusiso Sithole is investigating the contracts, but it is taking too long to achieve an outcome.
“Many contractors in the city with a proven track record of housing delivery are not being considered, while the same defaulting contractor is given work.”
The DA’s Dean Macpherson said, “It’s the best example of how the ANC awards its cronies for their patronage. His (Singh’s) bus company ran into the ground; yet he was awarded other contracts after that. The ANC is not willing to learn, no matter who holds the mayoral and city manager positions.
“Anyone implicated in the Manase Report should get no business from the city until the issues are cleared,” he said.
Corporate Governance and Traditional Affairs MEC Nomsa Dube commissioned the Manase Report.
Dube’s spokesman, Lennox Mabaso, said, “We’re in the dark as to how contracts are awarded – that relates to the day-to-day business of the municipality.
“We issued a report (Manase) that was an eye-opener and it will ensure the mistakes that almost led to the collapse of the municipality will not be repeated.
“Our report recommendations need to be implemented. If work was awarded to those implicated after the report was released, we will conduct new investigations. But for now there are no documents in front of us.”
In an interview with the Sunday Tribune last week, Sithole said he wanted to address the issue of tenders being awarded to “some whites, some Indians and a few blacks”.
Approached for comment on Singh’s further contracts, he said: “The contracts were not awarded under my watch. If they’re already signed, there are legal implications.
“I’m not familiar with the details of the contracts. Besides, I’m currently not allowed to talk to the media,” said Sithole, suggesting the Sunday Tribune seek comment from municipal spokesman Thabo Mofokeng.
“The municipality is aware of the information about the allegedly shoddy work. But this only came to light after the company had been awarded a contract for the first phase of Cornubia. The municipality is looking into this matter and considering the legal implications,” said Mofokeng.
Since 2010, Gralio has been awarded a contract worth more than R27m for the first phase of the Emtshebheni housing project in Inanda.
Late last year, the company was awarded the contract to build nearly 500 houses in the first phase of the Cornubia development.
Singh-owned Woodglaze is reported to have landed the proposed multimillion-rand Westville Triangle middle-income housing project.
In 2011, residents of the Treehaven complex in Phoenix reported Woodglaze to the National Home Builders’ Registration Council for shoddy workmanship.
Woodglaze, previously known as Palm Civils, was mentioned in the Manase Report for the cost of Hammonds Farm rising from R68m to R351m as 22 of the units in this Verulam development had to be demolished.
Palm Civils won the Burbreeze development contract in Tongaat in 2003. Poor workmanship was also reported on this project and costs for the venture leapt from R18m to R57m.
“The Fairbreeze and Hammonds Farm projects should have gone out to tender again when variances were detected,” said Iyer.
“If massive variance is detected on a project that will push up the value of a contract, it should be put out to tender again. We believe this is a platform to milk the municipality.”
Singh was not available for comment, but Pravesh Inderjeeth, a spokesman for some projects run by Singh, said: “Every month the media ask us about the same issues. Our attorneys are handling all correspondence.” He refused to name the lawyers. - Sunday Tribune