News

SA Gov't Ready To Work With Khato Civils Again

Almost two years since Khato Civils downed tools in Limpopo over a long-standing R300 million project fees, the Ministry of water in that country last week told a parliamentary committee that some behind-the-scenes engagement with the contractor were bearing fruit.

It also emerged that the Simbi Phiri-owned contractor could be back on site where it had already completed 95% of the project, to conclude the remaining five percent, which will see water reticulated for the first time since independence to the 55 targeted villages.

The department of human settlements, sanitation and water affairs director general, Mbulelo Tshangana was quoted briefing the parliamentary committee that government was ready to pay the contractor’s outstanding fees to get the stalled Giyani bulk water infrastructure project completed within the next seven months.

“There is progress, the pipeline is sitting at 95% completion as we speak. The only problem is that, for me, progress will be if the water starts running.

I think we should be done with everything by June but, again, the problem for every construction project is labour issues,” he was quoted by online engineering news company, Creamer. “I think it would be wrong of us not to pay them, so we will pay them and once labour issues have been sorted out then construction will take place to complete the pipeline. We have already done reconciliation on what was paid, what was outstanding.”

He conceded that the Special Investigations Unit’s (SIU) probe into the Lepelle Water Board, the implementing agency for the project, and its implications were complicating the matter, but said it should not be allowed to hinder completion.

“It is not like we are not moving on the five percent, we already have our fleet on the ground, the construction unit of the department is already on the ground. The only challenge is that SIU is asking us to recover money from the service provider.

“But the recovery, those legal issues can take place in court, but on the ground, we have agreed with the SIU that work should continue.”

Asked for comment on the latest developments, Khato Civils CEO, Mongezi Mnyani confirmed positive behind-the-scenes meetings with the government department on the way forward and that they remained optimistic.

Since pulling out of the Limpopo project, Khato Civils had been engaged in an R 1 billion worth of projects in South Africa alone, while in the SADC region a multi-billion-pula contract was concluded with Zimbabwe for the modernisation of the Beightbridge-Kazungula highway, while in Malawi, the $400 million Lake Malawi water project remains active.

They have also been involved in the North-South water carrier project in Botswana where they have already built two pump stations.

Their on-going South African projects include electricity generation where they are expanding the capacity of the current infrastructure in Cape Town’s Port Saldanha.

Other significant projects include the M1 Double Decker Bridge rehabilitation and upgrade project on the M1 motorway in Johannesburg.

The multi-million rand project is scheduled for handover this week. They are also currently busy on site at Hammanskraal, installing internal water and sewer reticulation on 2, 767 stands, as well as construction of bulk water sewer services.