R200 million DUT project: Allegations of dodgy dealings by contractor splits community

Allegations of fraud, mismanagement, jobs for pals and looting have been levelled against Temi Construction, a contractor appointed by the Durban University of Technology (DUT) to complete a R200-million engineering building at the institutions’ Indumiso campus in Pietermaritzburg.

The engineering building comprising two floors contained 25 workshops, 12 computer labs, a lecture hall with three lecture rooms on the ground floor, three lecture rooms on the first floor and a lift.

The community members of Imbali township, where the campus is located, has accused the institution of turning a blind eye to the looting of funds meant to empower local communities. The project which started early last year and was scheduled to be completed in March next year, has already had two stoppages due to the dissatisfaction of small businesses which claim to be cheated out of opportunities.

A subcontractor from the community alleged Temi’s mafia style dealings and unprofessionalism had divided the community and that fear engulfed small business owners as those who were illegitimately benefitting from the project were now in the business of silencing anyone against them.

“I worked diligently for many months doing work of impeccable standard but it became impossible to continue because the rates offered to us were too low and I ended up not being able to afford to pay my workers,” she said. “When there was work available, they approached me but when time to pay came, the main contractor claimed not to know me.”

ANC Ward 19 councillor, Caiphus Ndawonde, who is a member of the steering committee, explained that according to community participating goals (CPG), when a project is worth over R30 million, 30% must benefit communities surrounding the project. Ndawonde said earthworks and bricklaying tasks were meant to be awarded to locals however Temi brought their own companies.

“When someone is in business they always want to maximise their profits and that’s exactly what Temi is doing. They always offer ridiculous rates and they do that purposely to discourage locals. Once that happens it allows them to bring in their own people and they hire them using funds allocated for the community. This has already resulted in the project having two stoppages,” he said. “The main contractor is oppressing subcontractors with unrealistic, unfair rates.”

The councillor emphasised that if stakeholders are not being transparent, the project would be disrupted. “What we want to know from Temi is whether they would be replacing the money used from the CPG but there are no answers. Ultimately they will have to bring solutions to the community because there shouldn’t be people who want to make money at the expense of others,” he said.

A consultant still involved with the project but seeking legal advice due to alleged mismanagement and unprofessionalism by DUT, said the project was initially categorised as a fast track project because it did not cater for 30 percent of the CPG. All contractors who were earmarked for the project were appointed by DUT.

“Even though I have also struggled, Temi is not at fault because they didn’t know that the project would have demands from the community. When they tendered there was no provision for the community. DUT is the problem because they did not make amendments to fit the new situation of benefitting SMMES (small medium and micro enterprises),” he said.

“I have personally written to the university about all the issues we experience but they have not assisted much; they are not proactive so nothing has been resolved.” Danica Ellis, marketing manager at Temi Construction did not respond to allegations however stated that due to contractual terms, DUT would provide clarity on the project.

Alan Khan, senior director of corporate affairs at DUT said the university was looking into the possibility of further meetings with the relevant aggrieved parties to afford them an opportunity to provide credible evidence to support these serious allegations. Khan said the institution had engaged the community of Imbali township numerous times.

“The DUT procurement process, which is followed with all tenders for any qualifying external service needed by the university, was strictly adhered to in the awarding of this contract,”he said. “We urge anyone who has evidence of any foul play, to report this immediately with their evidence in hand.

“Once reported and evidence has been provided, the university will commence with the necessary investigation. DUT has a zero-tolerance approach to corruption.”