The contractor who misrepresented on his Bill of Quantities in order to be awarded two tenders from the GTM has had his contract terminated. The municipality terminated the services of Tshiamiso Trading 135 (Pty) Ltd in respect of SCMU15/2018 (Mulati Road Upgrading Project) and SCMU21/2018 (Codesa to Hani Street Upgrading).
The GTM said that the two tenders were awarded to Tshiamiso as a result of misrepresentation on the part of the service provider while the exact methodology was used in both tenders.
“The termination is effected in order to reduce the cost of the two projects which has skyrocketed to twice the tendered amount,” said spokesperson for the GTM, Neville Ndlala in a press statement earlier this week.
In an interview with Bulletin last week, the municipal manager of the GTM, Thapelo Matlala, explained that Tshiamiso accepted the tendered amounts and afterwards insisted on further funding (more than double the initial amounts) to complete the projects.
“In respect of the Codesa project, Tshiamiso tendered for R9 217 610.99 instead of R16 960 951 that Tshiamiso claims is the actual tendered amount. Similarly, in the case of the Mulati Project, Tshiamiso tendered for an amount of R26 824 512 instead of R57 509 148 which they are now claiming. The termination was also done for purposes of administrative compliance, which is a legal obligation,” Ndlala stated.
An engineer has now been appointed by the municipality to determine the both the scope of the work that now needs to be completed on both these projects as well as the market-related rates applicable to complete them. The GTM will now issue and emergency tender and responsive tenders that were received in respect of the two projects will be invited to submit bids to complete the outstanding work. Only tenderers which submit bids for an amount less than the amount determined by the engineer will be considered.
The municipality further states that successful tenderer will be obliged to give preference to members of the local community who were previously employed by Tshiamiso. This will be done to ensure that no worker or subcontractor in the two projects lose their employment.
“The municipality will consider the possibility of making outstanding payments directly to subcontractors and workers in the Codesa to Hani Project. This will be done within the ambit of the law and in line with applicable laws and regulations. We however wish to state categorically clear that the municipality has no contractual arrangements with any of the subcontractors or workers in the aforementioned projects. The intervention is made in the interest of the community,” said Ndlala.
In conclusion, Ndlala said that the municipality sympathises with residents, subcontractors and workers who are affected by the current contractual dispute in the two projects and is doing all within its legislative powers to get a speedy resolution in the matter.