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R208m North West road contract bites the dust

The R208 million Koster to Lichtenburg road construction contract had been terminated, the North West Department of Public Works, Roads and Transport said yesterday. The department said the termination was over a lack of progress on the project, but contractor Kaulani Civils claimed it had not been paid. “We are taking them to court because they did not pay us since January. Our company did good work, but the department failed to pay,” said Kaulani’s managing director, Anthony Schooling. Departmental spokesman Matshube Mfoloe said R110m – about half the contract – had already been paid, and that within a reasonable period. He said a payment of R3.9m was made on February 1, and another of R10.6m on February 10. “On December 17 last year we paid R7.5m and on November 11, we paid them R4.5m. “Our action against Kaulani Civils must serve as a strong warning to other companies that continue to take the government for a ride by cutting corners and delivering sub-standard quality to the people of the province,” said Mfoloe.

He said the department’s patience with Kaulani Civils ran out on March 14, when it was issued with a notice of intention to terminate the contract. Kaulani was given 14 days to improve performance or give reasons why the contract should not be terminated, he said. A letter of termination was issued on March 29. “The failure of the company to perform the task is disturbing to all daily and frequent users of that road, which we consider extremely important for the general motoring public, the farming community in the area and other entities doing business in and out of the North West,” Mfoloe added. The road should have been completed in November last year, he said, adding that Kaulani Civils was awarded the contract on 50km of the 80km road. Kaulani vacated the site on Saturday. “We have moved swiftly in ensuring that the critical function of controlling traffic be taken over by another company in the interim in order to avert the likelihood of vehicle collisions,” he said. The department would now appoint a new and “competent” contractor to complete the project.

Source: iol.co.za
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