DIS tainted Maun project costs soar to P2.9bn
SPIRA TLHANKANE | Monday June 23, 2025 13:00
The project, which the Directorate of Intelligence and Security, (DIS) meddled with from the beginning has also accumulated P20.7 million as interest for late payments.
Information reaching Mmegi from the site now indicate that the contractor, Zhengtai Group, is considering abandoning the project.
The project, which is meant to improve access to potable water and sanitation services in Maun and its outlying satellite villages, was recently a subject of discussion during the Public Accounts Committee (PAC) hearing.
Sources close to the project say it has suffered from the onset. They said only an advanced payment of about P187 million have been made it since commenced in 2019.
Advanced payments are paid to a contractor before the completion of work as per the contractual agreement.
This type of payment is often made to assist the contractor with initial costs, such as materials, labour, and mobilisation expenses, enabling them to commence the project without financial delays.
Information gathered also indicates that the project only started receiving Claims & VOs in 2023, three years after its commencement.
These claims are formal requests the contractor made for additional payment and extension of time due to unforeseen circumstances, changes in the scope of work, or other disruptions.
The claims from the Maun project arose from delays, extra work that was not originally included in the contract and changes in project specifications.
Variation Orders (VOs) in this project reportedly started after modifications to the work after the contract was signed. This included changes in design, materials, quantities and their impacts on the contract price and timeline.
Moreover, the costs for the project have allegedly increased because of adjustments made throughout the project timeline.
Reports from the site indicate that the ongoing financial interactions between the contractor and the managing entity being the ministry of Water and Human Settlement are affecting project progression.
With adjustments applied throughout the timeline, it is said that government is failing to stay aligned regarding monetary responsibilities and expectations as the project develops.
The ongoing financial relationship between the two parties is said not to be doing justice to the project which was decided by DIS many years ago.
Contacted for comment, Zhengtai Group spokesperson Kopo Mononi clarified that they have not abandoned the project as it is alleged.
“The project is ongoing,” he confirmed, admitting that they have faced challenges that delayed the project and increased costs to P2.2 billion.
“As you recall, the tender was awarded at P1.8 billion but quantities went high and there were many variations on the ground,” he said.
Mononi said they realised that Maun was actually bigger than they thought which also led to variations. Mononi cited other unforeseen challenges which came along like COVID-19 led to the increase in costs.
He also cited challenges of material as one of the things which led to delays. He said they also had a delay of one and half years because of the Department of Environment and Assessment.
In terms of government failing to pay them on time and delaying the project, Mononi said they have not yet reached a point where they can abandon the project because of delayed payment from the client.
“At some point the client had not paid for six months but we usually give notice when the situation becomes extreme.
“We understand the situation the government is in and therefore, find money to keep the project afloat. What we know is that the client will eventually pay,” he pointed out.
In terms of the interests accrued as a result of late payments, Mononi said he could not disclose how much has accumulated. He said when it comes to interest for late payments, the matter is administrative and stipulated in the contract.
Mmegi contacted the ministry to comment on the ballooning costs and delayed payments. (Awaiting ministry response).
Looking back, the DIS revoked the tender which was initially awarded to China Jiangsu International in 2018 at a tender sum of over P1.568 billion. After the DIS intervention, the award was later rescinded and the tender awarded to the second bidder, Zhengtai Group Botswana on March 21, 2019 at tender amount of over P1.873 billion.
The reason for the revocation was that DIS had indicated that their investigations had shown that China Jiangsu International was involved in activities that were rendered to be posing a threat to national security.
As a result of DIS interference,Water Utilities Corporation (WUC) paid P112 million to China Jiangsu International Botswana as part of an out of court settlement.