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19 June 2013
   
 
 

According to the Department of Public Works' 2009 annual report, the company Ruwacon (Pty) Ltd has cost the department approximately R5.5 million due to repeated breach of contracts. To date the department has refused to answer any questions on the matter in committee, particularly regarding why the department kept giving new contracts to the company in light of its poor record. As such, we will now be submitting a series of parliamentary questions to the minister on this matter. The lack of integrity with which the tender process is often handled by the ruling ANC - awarding tenders to friends, family and themselves - raises serious questions around the necessity and quality of the services delivered through these tenders. The department's attempts to dodge the questions asked concerning this particular company risks creating the perception that they have something to hide. On 13 October I asked a question at the portfolio committee meeting on Public Works on this matter. The department could not provide an answer to it, and was given until the next meeting to answer. On 3 November I again asked the same questions, and despite being reminded by the chairperson, the department again refused to provide clarity on the nature of and costs relating to the breach of contracts. A breach of contract is no trivial matter, hence the heavy penalties imposed. It is deeply concerning that the DPW has repeatedly been in breach of contract with Ruwacon, and this raises serious questions as to the department's grasp of good business conduct and their ability to honour agreements. Whether the breaches refer to one agreement or several is unclear, and the DA will be asking the Minister to provide clarity. According to a business listing website, Ruwacon (Pty) Ltd is a construction company specialised in doing repair and maintenance work (civil, electrical, mechanical and structural) on government buildings, and despite costing the department R5,5 million in breach of contracts is still apparently performing repair and maintenance work on 87 sites nationally. The Democratic Alliance (DA) will be asking the minister for details on these breaches, why there were so many in one year, why they cost so much, and whether the department is still engaged in business with Ruwacon and what contracts Ruwacon is still responsible for.

Edited by: Creamer Media Reporter
 
 
 
 
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