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Millions spent as Bulawayo projects flop

by Staff reporter
2 hrs ago | 46 Views
THE City of Bulawayo's procurement operations are coming under scrutiny after the local authority reported that 28 of its 102 active contracts were behind schedule, with seven classified as non-performing, despite millions of dollars being paid to contractors during July.

The council awarded 11 new contracts valued at US$458 945.83 during the month, but its contract-monitoring report painted a broader picture of projects struggling to meet agreed timelines.

Of the 102 contracts active at the beginning of July, 74 were reported to be progressing within their planned timelines, while 28 had fallen behind schedule. Six contracts had been completed.

"Twenty-eight were behind schedule, of which seven were not performing at all," the council reported.

The figures raise questions about the local authority's ability to ensure that contracts result in the timely delivery of infrastructure and services to residents.

Among the projects experiencing serious difficulties was the rehabilitation of the deep-section tunnel sewer, which was locked in arbitration following longstanding disputes between the contractor and the City of Bulawayo.

A separate project involving the servicing of 390 high-density residential stands in Magwegwe West had also spent an extended period in arbitration, although the council said it had secured a ruling in its favour.

The Beit Hall refurbishment project suffered another setback following disagreements over price variation claims.

"The contractor had abandoned the site, and the City was working to have the project formally handed over in its current state," the council said.

The local authority said it intended to forfeit retention funds following the formal handover and complete the outstanding works itself.

Several housing projects have also been affected by inadequate funding, with beneficiaries being asked to pay additional amounts towards servicing costs.

The affected projects include the servicing of stands in Woodville and Paddonhurst, 288 high-density stands in Magwegwe Extension and 502 medium-density stands in Emhlangeni Phase II.

"Beneficiaries had been asked to pay top-up fees to cover servicing costs," the council said.

It added that some beneficiaries had responded positively and that procurement of materials would begin once sufficient funds had been collected.

The arrangement places an additional financial burden on residents who have already been allocated stands but are still waiting for basic infrastructure to be completed.

Meanwhile, the procurement report showed that the council made substantial payments to contractors during July, with total payments amounting to ZWG271 809.49 and US$11 499 464.22.

The largest payment was US$4.86 million for the supply and delivery of motor vehicle tyres and tubes.

TIB Insurance Brokers received US$1.43 million for insurance brokerage services, while Saltaway Enterprises was paid US$1.04 million for the hire of planting equipment.

Tokologo Technical received US$775 070.69 for sewer blockage clearing and maintenance, while Mine Assistant Company was paid US$746 173.72 for similar services.

Other major payments included US$723 855.58 to Acrefruits Enterprises for water reticulation materials, US$510 967 to Engineering Waterproofing for City Hall waterproofing, US$330 470.90 to Actual Hardware for water reticulation materials and US$297 092.97 to Luciedie Marketing for motor vehicle spare parts.

The scale of the payments contrasts with the number of projects that remain behind schedule, although the report does not indicate that the payments themselves contributed to the delays.

The council's procurement figures also highlighted gaps in the participation of targeted business groups.

Of the 11 contracts awarded in July, four went to male-owned businesses, six to companies jointly owned by men and women, while only one went to a female-owned business.

No contract was awarded to a youth-owned business or a business owned by a person with a disability.

Male-owned businesses received contracts worth US$238 422.85, while female-owned businesses received only US$5 358.68. Jointly owned businesses secured contracts worth US$215 164.30.

The council reported zero awards to youth-owned businesses and businesses owned by people with disabilities, highlighting continued challenges in ensuring broader participation in its procurement processes.

Source - Southern Eye
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