11 Sep 2018

Kweneng District Council (KDC) Secretary, Mr Goleba Kgari says the release of the Audit Report on the Molepolole Bus Terminus was delayed by litigation over the project between KDC and Estate Construction. 

Responding to Thamaga North Councillor, Mr Palelo Motaosane’s plea for the release of the audit report to the council, following debate on Borakalalo Councillor Arafat Khan’s questions over issues surrounding the bus terminus and its associated works, Cllr Motaosane insisted on the need for the report to be availed, for them to be able to know what may have transpired. 

Mr Kgari further explained that he was aware of the need for councillors to have the audit report, but that the delay was due to the fact that the report had to be taken to the audit committee and other council structures before it could finally be availed to councillors.

“Although the report has long been finalised, it is important to understand that it could not be availed after litigation emerged and was therefore shelved awaiting finality of the case as it may jeopardise court proceedings,” advised the council secretary.

Cllr Motaosane’s request was prompted by responses provided in regard to Mr Khan’s questions, that had wanted the council to shed light on the costs incurred as a result of litigation between KDC and Estate Construction over Molepolole Bus Terminus Project.

He also wanted clarification over legal costs incurred as a result of the disputed project, payment made to the contractor, the total amount of money paid to the construction company as well as to understand why KDC delayed payment to the contractor after the handing over.

Reponses to all these questions revealed that payment of over P204 million was incurred as legal costs by KDC, which was likely to increase due to an order made for payment of costs for the other party.

It was further stated that over P16 million was also paid with interest calculated at prime rate, plus the three per cent interest, when the actual disputed amount owed to the contractor was P13 662 742.

The total amount paid according to how the council was briefed totaled over P170, 969 million an increase of over P65 million from the initial P115 million planned for the project, before it was escalated to the current disputed amount resulting with Estate Construction Company dragging KDC before court.

The other issue was who was to take responsibility of cracks developed on individual properties due to project construction at Borakakalo ward.

The council’s response was that, according to their understanding, it was supposed to be the contractor though the matter was still under discussion.  

The council secretary however assured the council of plans to meet the contractor and the consultant engineer any time soon to address outstanding issues before the matter can finally be concluded. ENDS