A Gauteng government school project worth more than R116m is the subject of serious corruption allegations, after a rescue contractor accused consultants and departmental officials of certifying allegedly non-existent construction work and approving inflated payment certificates worth millions of rand.
Internal project documents linked to the troubled Semphato Secondary School development in Soshanguve, Pretoria, suggest the project became engulfed in disputes over allegedly inflated quantities, disputed construction claims and irregular payment certifications.
Mkhize Gcwabe Properties (MGP), which was brought in as a rescue contractor after operational difficulties emerged on the project, has said that more than R15m was certified and paid for work that allegedly could not be verified physically on site.
In the company’s report seen by Sunday Times, the contractor alleged that irregularities and inflated pricing structures were uncovered shortly after it assumed responsibilities on the project.
MGP alleged that consultants and departmental representatives involved in the project approved payment certificates despite glaring inconsistencies between site conditions and certified work.
“Visible discrepancies between certified work and actual construction progress were observed during site verification inspections,” read the report.
Among the most serious allegations are claims relating to roofing structures allegedly certified and paid for, despite what MGP said was the absence of corresponding infrastructure on site.
MGP alleged that quantities reflected in several payment certificates exceeded what physically existed at the project. The report further states that inflated quantities and unsupported claims were allegedly processed and approved without proper scrutiny.
The company claimed that the disputed certifications contributed significantly to financial instability and operational strain on the project.
According to the documents, MGP was brought in after construction delays and disputes threatened the viability of the school development. However, the contractor said that shortly after assuming responsibilities, it encountered serious inconsistencies between payment certifications and actual site conditions.
It is said in the papers that portions of infrastructure reflected as completed in official payment certificates was incomplete, defective or unverifiable during site inspections.
“MGP discovered that certain certified construction elements could not be accounted for during physical verification processes conducted on site.”
The allegations do not only target contractors involved in earlier stages of the project but also implicate consultants and departmental officials responsible for inspections, oversight and payment approvals. The company alleges this created an environment where public funds were disbursed for defective, incomplete or unverifiable infrastructure.
MGP further claimed that attempts to raise concerns about this were ignored, dismissed or inadequately addressed.
In another section of the papers, the contractor alleges that the project had already reached a state of operational distress by the time it became involved. The documents further stated that disputed payment certifications and underpayment contributed to severe operational strain and undermined efforts to stabilise the development.
Greater scrutiny of school projects
The allegations have now intensified scrutiny over infrastructure procurement and oversight systems within Gauteng government projects, particularly school developments where consultants, quantity surveyors, engineers and departmental representatives are responsible for verifying completed work before public funds are paid.
At the crux of the findings is the question of how multimillion-rand payment certificates were allegedly processed despite what the contractor said were glaring inconsistencies between certified work and actual site conditions.
Despite the seriousness of the allegations, it is unclear whether any formal criminal complaint has been lodged with the Hawks, the Special Investigating Unit or other authorities.
Neither the Gauteng department of education nor the Gauteng department of infrastructure development responded to questions this week. It is also therefore unclear if either of the departments has initiated any formal internal investigation into the disputed claims raised by MGP.
Questions also remain regarding the total amount already paid on the project, the status of disputed payment certificates and whether independent verification procedures were conducted before payments were authorised.
Meanwhile, the future of the Semphato Secondary School project remains uncertain as allegations of phantom construction claims, inflated quantities and disputed certifications continue to cast a shadow over the multimillion-rand development intended to serve pupils in Soshanguve.
Sunday Times
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