A statement from the department of public works, roads and transport its actions against Kaulani Civils (Pty) Limited must serve as “a strong warning to others who continue to take government for a ride by cutting corners and delivering sub standard quality to the people of the province”.
The department said that it had fired Kaulani Civils for non-performance and failure to meet the targets for the project to build a key road between Koster and Lichtenburg. "We have on a number of occasions, expressed our disappointment and downright dissatisfaction with their performance," said the statement. "This was informed by the lack of visible progress on the Koster to Lichtenburg road." It had been evident at the beginning of the year that Kaulani Civils was falling far behind schedule with the work they started in February 2009, according to the department. "Our eyes, we said at the time, cannot lie to us." Confirmation of lack of visible progress on the road was corroborated by all daily and frequent users of the road, said the statement.
"Indeed our patience with Kaulani Civils finally ran out on March 14 when the Department of Public Works, Roads & Transport issued them with a notice of intention to terminate the contract. They were given 14 days to improve performance on site and or give reasons why we should not fire them. Kaulani Civils failed to comply with the March 14 notice and on March 29, the department had no other option but to issue a termination letter of the contract."
The original target date for completion was November 2010. The revised completion date was June 2011.
The contract value for the Koster- Lichtenburg road project was R208 million. It is approximately 80km long but Kaulani Civils was awarded the contract for 50km. "To date, the department has paid Kaulani Civils approximately R110 million for work they claim to have performed which is about half the project," said the statement.
The contractor has vacated the site this week. "The department will begin a process to finalise arrangements to invite and appoint a new and competent contactor to complete the remainder of the work on the road between Koster and Lichtenburg. We hope to expedite this process, in order to put this road project behind us once and for all."
The statement goes on to say that it has been made to understand that Kaulani Civils is alleging that late payments and/or non-payment for work performed contributed to the situation. “I want to dismiss that assertion with contempt," it said, maintaining that payments due to Kaulani Civils were processed within a reasonable period. "I can confirm the last two payments of R3.9million and R10.6million were made within 10 days." These were on 1 February and 10 February. Other payments were made in November and December.
"It is therefore ludicrous to even begin to blame government for cracking the whip on contractors, who in spite of our patience, continue to fail the people of the North West and attempt to embarrass government.”
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