The two road building companies Kaulani Civils and Moseme
Construction, involved in a dispute with the North West roads
department, have been paid, the department said on Wednesday.
"We confirm today (Wednesday) that payments totalling R70.5-million due to the two road construction companies we have a
dispute with regarding their purported appointment, were processed
yesterday (Tuesday)," Matshube Mfoloe said.
Kaulani Civils was paid R35-million on Tuesday and proof of
payment was faxed to their offices and to their attorneys.
Mfoloe said R35.5-million would be paid to Moseme Construction
by Wednesday.
"Included in our offer, was for Moseme Construction to complete
the Sun City to Phokeng road project, on a without-prejudice basis,
pending the finalisation of investigations by various law
enforcement agencies."
Kaulani and Moseme are both being investigated after the North
West roads department suspended three of its senior officials last
November.
A forensic investigation was also launched into the provincial
department's dealings.
Mfoloe said the officials had been charged and a case registered
with the police.
The department's chief director of roads Eddie Thebe, department
head Nic van Staden and chief financial officer Kweku-Odame Takyi,
were scheduled to answer to a litany of charges, which included the
irregular appointment of road construction companies.
Their hearing would take place between 22 March and April 19.
Mfoloe said the investigations were currently in the hands of
various police agencies and would continue despite the payments.
Mfoloe said the payments did not translate into backtracking
from the department's own findings, as corroborated by forensic
auditing firm PriceWaterHouseCoopers.
"We are of the view that the purported appointment of Kaulani
Civils and others was horrendously flawed, making a mockery of
procedures as stipulated by Public Finance Management Act."
Mfoloe said Moseme Construction made a commitment to the
provincial government to finish the Sun City to Phokeng road
project by 11 May.
The department was sure that it could hand over the road to
soccer's governing body Fifa by 21 May.