R3 billion water contract for Giyani terminated

Construction company Khato Civils says it was forced to abandon the unfinished project due to non-payment which forced it to retrench nearly 1,000 workers.

 A six-year-old boy from Giyani in Limpopo has died after falling into a trench that was left open allegedly by a company that was handling the R3 billion bulk water project in the area. Picture: Mike Maringa

JOHANNESBURG - The R3 billion contract to provide water to Giyani which was awarded to Khato Civils has now been terminated.

The project, which was aimed at supplying water to 55 villages in the Limpopo community, came to a halt late last year when the cash-strapped Water and Sanitation Department failed to pay the company.

Khato Civils now says it received a letter of termination more than three years after starting the project; the company says it plans to challenge the decision.

The construction company says it was forced to abandon the unfinished project due to non-payment which forced it to retrench nearly 1,000 workers.

The company's Mongezi Mnyani says about R70 million is owed to the firm for the work that's already done.

The department says it's aware of the termination of the Khato Civils contract but it says that decision was made by its entity Lepelle Northern Waters.

This contract has been scrapped less than two weeks after the death of a six-year-old boy who fell into a Giyani trench that was left open, allegedly by Khato Civils.

(Edited by Shimoney Regter)