#TenderFraudAlert: Bankrupt Kgetlengrivier pays up to R20 000 per water meter

4th April 2022

#TenderFraudAlert: Bankrupt Kgetlengrivier pays up to R20 000 per water meter

Photo by: Bloomberg

The Democratic Alliance (DA) in the Kgetlengrivier Local Municipality is in possession of documents which indicate that the municipality has contracted the supply and installation of functional residential water meters at a cost of between R16 000 and R20 000 per unit.

This massive per unit cost is nothing but an inflated contract that warrants immediate investigation.

The contract value in Swartruggens for 100 water meters comes in at R1.6 million, or R16 000 per unit. In Koster, the Kgetlengrivier Local Municipality forked out R20 000 per unit, with a total contract value of R2 million for 100 meters.

Kgetlengrivier spent R3.6 million for 200 water meters which could have replaced old or installed new water meters at almost 2 000 households. In fact, it would have assisted the municipality’s revenue collection efforts if it had rather replaced normal municipal meters with pre-paid meters, the cost would have been at around R3000 a unit while improving revenue collection.

This water meter project has been fraught with difficulties from the start. Numerous households reported water leaks discovered after the meters were installed, which required the municipality to again contract the same service providers to repair the leaks.

Following complaints from residents, the DA wrote to the Chairperson of the Portfolio Infrastructure Committee, Cllr Kagiso Selaolane, requesting that the project be halted. On the other hand, Mayor Thabo Jacobs has stated unequivocally that the project must proceed and that the DA’s concerns are minor issues that can be resolved quickly.

It appears that this project is not, in the mayor’s words, "benefiting our people". It is rather benefiting tenderpreneurs, which in turn, as the State Capture Report indicates, benefits ANC cadres, their friends and families.

The DA will write to the MPAC Chair, Cllr Virginia Molatole, to initiate an investigation into these inflated contracts and that the contracts be rescinded, and all monies paid be recovered.

 

Issued by Cllr Mduduzi Maphanga - DA Councillor: Kgetlengrivier Local Municipality