Close to R1bn has been invested in upgrade projects for schools in Gauteng, but only two will be handed over — with others stalled or abandoned. The province’s infrastructure department’s ability to deliver has been undermined by a financial crisis and more than 90 litigation cases worth about R2bn, with contingent liabilities estimated at R800m. Of the two schools set to be handed over to the Gauteng education department when school reopens this week, one is a project that began a decade ago, and the other was meant to be completed and delivered five years ago.
This limited handover comes against a backdrop of stalled, abandoned and repeatedly delayed projects, some launched as far back as 2016, despite hundreds of millions of rand already paid to contractors. The financial crisis has forced the department to establish a panel of “rescue contractors” to take over incomplete projects and to retain a law firm to deal with problematic service providers. But the delays have left communities frustrated and pupils paying the price, as former community pillars have been reduced to temporary classrooms unsuitable for learning.
According to figures seen by the Sunday Times, millions of rand have been spent on school construction projects that remain unfinished. According to Gauteng infrastructure development MEC Jacob Mamabolo, contractor cash-flow problems are a key contributor to delays. “These legal and financial exposures pose a major threat to the department’s operational stability and reputation.” The failures have strained relationships with client departments, including the Gauteng education department, which has withdrawn several new school projects.
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“Despite stringent due diligence before tenders are awarded, contractors’ ability to sustain healthy cash flows is often only exposed later in the projects. This contributes to cost overruns and missed deadlines, frustrating communities and client departments.”
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