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- Public protector Busisiwe Mkhwebane has found no evidence that former Water and Sanitation Minister Nomvula Mokonyane interfered with various water projects.
- In August 2016, DA deputy Leon Basson filed an official complaint citing that Mokonyane interfered irregularly in projects implemented across the country.
- Mkhwebane found the allegations to be unfounded after an extensive investigation.
Former Water and Sanitation Minister Nomvula Mokonyane has been acquitted of allegations that she was irregularly involved in controversial water projects, some worth R3.8 billion.
On Monday, Public Protector Busisiwe Mkhwebane released the results of its investigation into various water projects, in which Mokonyane allegedly acted improperly.
The investigated projects were:
- Repair of the water infrastructure in the municipality of the Mopani district (MDM), a project whose budget increased from R96.4 million to R502.6 million in three months.
- The lifting of the Hazelmere Dam wall in KwaZulu-Natal, a project that was approved in 2011 with a budget of R91 million and is expected to cost R359 million as of the date of this report, with no completion date.
- The 36-kilometer pipeline between Craigieburn and Greytown in KZN.
The complaint was filed by DA deputy Leon Basson on August 18, 2016.
Mkhwebane investigated whether the Lepelle North Water Board (LNW) irregularly awarded the contract for the provision of water and sanitation services in the Mopani, Giyani project to LTE Consulting (Pty) without following legal contracting requirements.
Investigators also asked whether there was mismanagement in the Nandoni-Nsami (Giyani) pipeline project of the Department of Water and Sanitation (DWS).
“A copy of the letter of appointment dated August 20, 2014 from LNW to LTE was reviewed. The estimated period to complete the work was four years, thirteen months and two weeks. The estimated amounts were: Giyani Water Works: R52 150,000 and Giyani Wastewater Works R38 800,000 ”, he said.
On August 25, 2014, Mkhwebane said, Mokonyane sent a letter to LNW that, among other things, issued a directive to LNW, “… to intervene, with effect from August 18, 2014, in the treatment of Giyani water and sewage in order to restore the water supply to residents ”.
The letters showed that on August 27, 2014, LNW wrote to the National Treasury informing them that they had been appointed as implementing agents by the DWS.
“As such, LNW had designated LTE over deviation due to the emergency nature of the project. On August 28, 2014, LTE issued South Zambezi (Pty) LTD a letter of appointment for engineering and project management services, ”he said.
The appointment had an estimated cost of 211,425,000 R2 over a five-year period.
Mkhwebane said the LTE appointment was turnkey.
“A turnkey solution or project means a type of project that is built so that it can be sold or delivered to the owner as a complete product. LTE then took full responsibility from designs to project completion. Midiyavhathu Kennedy Tshivhase (President of the LNW board at the time) further stated that at the time of the project, LNW did not have a service provider panel when it was appointed by DWS as implementer with respect to the project. LNW used the DWS service provider panel in which confirmed that LTE Consulting was in category 6 of the Professional Service Providers (PSP) panel, “he explained.
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Mkhwebane also cited the Auditor General’s (AG) engineer report from July 2017. According to the report, LTE was charging rates that were above the norm for the Department of Administration and Public Service (DPSA) and the Department of Public Works. (DPW).
“The AG report indicated that the maximum rate for a consultant working at the Director level was R1 383 / hour on the DPSA scales and the maximum rate for a registered professional director was R1 448 on the DPW scales. LTE claimed up to R3 500 / hour. Due to the fact that this project was never put up for bid, LTE was allowed to charge whatever fee it wanted. This was not profitable, fair, equitable, competitive or profitable, ”he said.
In the end, Mkhwebane was unable to establish from the evidence that Mokonyane had given direct instruction for LNW to award the project to LTE.
“It was LNW officials who followed the hiring process to appoint LTE,” he said.
It also found the allegation that Mokonyane was involved in irregularities in the tenders in the three remaining projects unfounded.
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