Public Protector takes Gauteng govt to task for paying contractor R10 million idling fee
Officially known as a compensation event, this is money paid to the contractor when the time and cost of project has been increased through no fault of their own.
FILE: Advocate Kholeka Gcaleka. Picture: Xanderleigh Dookey Makhaza/Eyewitness News
JOHANNESBURG - The Public Protector has taken the Gauteng government to task after it paid a school construction contractor a R10 million idling fee.
Officially known as a compensation event, this is money paid to the contractor when the time and cost of a project has been increased through no fault of their own.
In a recently released report, the Public Protector said that maladministration led to the Gauteng departments of infrastructure development and education having to pay this standing fee after they caused delays in the construction of the Mayibuye Primary School.
Contractror, Basic Blue/Nebavest, was appointed by the Gauteng government in August 2015.
However, the site was only handed over to them in May 2017, leading to the government incurring the R10 million compensation event fee.
Public Protector Kholeka Gcaleka said that this undue delay was caused by poor project management from the relevant government departments.
She said that a lack of coordination and proper planning led to a massive loss of public money.
While the school was officially opened earlier this year, Gcaleka has ordered the head of Gauteng Treasury to submit a report on its cost-control measures for future building of schools.