Bhisho ordered to pay R70m for unfinished road

the bhisho high court has ordered the provincial government to pay a beacon bay construction company millions of rands after failing to pay for work already completed.



the c ourt ordered the department of roads and public works to pay rumdel construction more than r70.5 million, including interest, for work on the ugie-langeni road.


judgment was first made in september but the government did not comply, forcing the court to issue a final order in december.


work on the ugie-langeni road – hailed as the country’s most unique road project – stopped as costs ran over budget before completion.


the department refused to pay further costs. the value of the uncompleted section was approximately r120m.


according to court papers, numerous payment certificates were issued but no payments were made since 2008.


in the court documents it was stated that in accordance with the contract signed, the department appointed ndodana/mbsa consulting engineers joint venture as its engineer with authority to issue payment certificates.


certificates for a total of about r35m were issued by the engineers from november 2008 to april 2009 .


the department was also ordered to pay lm 3 joint venture – a partnership which includes rumdel construction, themcon, mametse cc, makhubu civil cc and lik’themba building and construction cc – a further r35m.


numerous payment certificates were issued by hho africa/camdekon joint venture in their capacity as government engineers from december 2008.


but the department, which was meant to pay within 35 days, failed to do so, resulting in rumdel and its partners taking it to court.


built in three phases, the 87km stretch of road was to open new avenues for commerce in the area, providing a significant boost to local agriculture, eco-tourism and forestry industries.


in the past, the shortest route to mthatha from ugie was via tsolo, a roundabout journey of some 200km.


phases one and two of the project were completed, and just 9.5km of road works remained on phase 3 when work came to a standstill.


according to rumdel construction’s attorney alastair hay, the order was upheld by the bhisho high court.


transport spokesperson ncedo kumbaca said that the matter was still before the court as the department had appointed an independent assessor and senior counsel to represent them.


he said they also had an internal process to ascertain whether any government officials were involved in approving the variation orders.


“we need to find out if there is any wrongdoing in the department. this matter was also disclosed to the audited financial statement and the standing committee on public accounts. we will leave no stone unturned.”

according to kumbaca, work on the road has still not progressed.

asa sokopo