Magosi cancels SPEDU P1.2bn project

Oarabile Mosikare | Friday February 26, 2021 16:07

 

Magosi cancels SPEDU P1.2bn project

The project has been divided into two phases and the P230.5 million Phase 1 works contract entails the provision of detailed designs of infrastructure, construction of road works, storm water drains, water reticulation, sewer pump stations, power reticulation, street lighting and telecommunications. Its period of performance is estimated to be 15 months with a 12 months defects notification period. The expected completion date of Phase 2 work contract was slated for March 2023 and was expected to create 3, 500 jobs with an investment of P1,2 billion.

Impeccable sources said on February 23, 2021 there was a meeting at Office of the President (OP) to discuss the works contract for the design and building of Phase 1 infrastructure in Bolelanato and Senwelo Industrial Sites in Selebi-Phikwe which was halted by the DIS last year.

At the  meeting there was Magosi, Permanent Secretary to the President (PSP), SPEDU Board chaiperson, SPEDY Chief Executive Officer, SPEDU director, Permanent Secretary in the Ministry of Investment, Trade and Industry (PS), PS - Ministry of Land Management, Water and Sanitation Services and a general attorney at OP. At the tense meeting, Magosi directed that the tender must be cancelled with immediate effect.

“He said there was corruption Public Procurement and Asset Disposal Board (PPADB) when Marcian Concepts was awarded Grade E code.

He also alleged that some junior officers at SPEDU connived with the contractor in this tender,” alleged a source close to the meeting. Yet another source argued that Magosi was economical with the truth because a consultant, not SPEDU did the Invitation to Tender (ITT).

“SPEDU didn’t evaluate the tender. It was evaluated by the consultant. All SPEDU did was to do a verification and after that they put it to the Board,” the source said.

To everybody’s surprise, Magosi allegedly claimed that SPEDU did the ITT and when some tried to correct him, he did not take kindly to that. “He threatened everybody who differed with him and in the end he directed that the tender be cancelled.” 

Reached for comment, DIS spokesperson Edward Robert said the DIS did not manage projects on behalf of procuring entities. “Our business is in security as explained in the Intelligence and Security Service Act. When we pick an issue of security concern on any public project, we share the same with the project owners.

The information we would have shared will assist the owners make informed decisions on how they proceed with the project. My office would therefore advise that you direct your inquiry on the matter you are raising to the project owners.” SPEDU management could not be reached for comment. Meanwhile, on February 11, 2021 Marcian Concepts hit the investment promotion company with a hefty P31,  823, 337. 71 summons  following  failure to reach compliance with requirements of the contract. Through their attorney, Mompati Sepego, Marcian Concepts said the Phase 1 project would be fixed at P230, 531, 402.7 6 and the employer [SPEDU] shall make an advance payment as an interest-free loan for mobilisation and design, when the contractor submits a guarantee in accordance with Clause 14 of the FIDIC [International Federation of Consulting Engineers] conditions of contract.   

“Following compliance with the contractual requirements, on  June 26, 2020, the plaintiff made its request for advance payment in the sum of P18, 327, 019.58 in terms of Clause 14.2 of the FIDIC conditions of contract. Despite lawful demand (which was reiterated on October 8,  2020), the defendant failed, neglected and/or refused to pay the said amount.

Furthermore, in accordance with contractual requirements, the plaintiff carried out works in terms of the contract and submitted interim payment certificate for certification by the engineer as and when contractual milestones had been reached,” Sepego wrote.

He also prays for payment in the sum of P8, 083, 699. 38 being amount certified by the engineer per Interim Payment Certificate No.1, payment in the sum of P4, 348, 567. 64 being amount Certified by the engineer per Interim Payment Certificate No. 2.  He also prays for P1, 064, 051.11 which is interest per Clause 14,8 of FIDIC conditions of contract, as at January 30, 2021 and it continues to increase. Lastly, the attorney prays for costs of suit on attorney own client scale and further or alternative relief.