George Council fights for grant

GEORGE NEWS - The municipality has lodged an appeal with National Treasury claiming their decision was based on an "erroneous assumption" by Treasury.

At the George Council meeting yesterday, George Mayor Melvin Naik announced that National Treasury had told him during a telephonic conversation at 09:18 the same day, that the administrative appeal of the roll-over application will be "positively reviewed".

George Municipality Communications Manager Chantel Edwards-Klose explained this to mean that the municipality expected "a positive outcome".

In response to questions from the George Herald, Edwards-Klose issued a statement saying Treasury's decision "appears to have been based on the erroneous assumption that only 50% of the Public Transport Network Grant (PTNG) funding, a total of R106-million as per the original Division of Revenue Act (DoRA) allocation received for 2016/17 financial year, was spent.

In fact, 100% of the R106-million rand was spent," the statement reads.

As far as the additional, and now at risk, R50-million PTNG grant that the municipality received when it was reallocated to George from Ekurhuleni in March this year, Edwards-Klose said George Municipality fully complied with the criteria, time frames and grant conditions set out for the allocation of the money.

She said a service provider [Muravha Building and Civils] was appointed with a signed contract prior to the end of the financial year on 30 June (2017) for the widening of Nelson Mandela Boulevard.

According to her, an amount of R2,7-million had already been spent by then.

It is not clear whether the money was paid to Muravha or the consulting engineer, Smec.

"George Municipality handled the tender and appointment process of the service provider in accordance with the George Municipal Preferential Procurement Policy Framework Act (PPPFA), the supply chain and other legal requirements.

With a firm grip on the Council agenda of 24 October, some opposition parties voice their concern over the current DA leadership. From left are Councillors Abel Kiwit (AIC), Langa Langa and Nomawethu Jantjies (ANC), Gert van Niekerk (FF Plus), Basil Petrus (Sac) and Virgill Gericke (PBI). Absent: Wilbur Harris (Icosa).

"George Municipality will not apply shortcuts and deviations in terms of these policies. Where other municipalities have followed this path, it has led to supply chain disputes and punitive damages being awarded," Edwards-Klose said.

She said that in accordance with the PPPFA policy for George Municipality, 30% of the work on this tender must be contracted to local service providers.

George First
The newly formed George First Forum, a watchdog body of about 40 local professionals in the civil engineering field, has expressed grave concern about the refusal of the roll-over.

In a statement released on Tuesday 24 October, George First said the rejection by National Treasury of the roll-over application will have an "extremely negative effect on other George Integrated Public Transport Network (GIPTN) funded infrastructure projects".

The forum also said the tender conditions of the Nelson Mandela Boulevard upgrade meant that most of the established local contractors could not tender for this project.

"These companies are the cornerstone of the local civil engineering industry. They provide much-needed job opportunities and pay taxes in George. The result of the tender conditions was that the tender was awarded to a company from Mbombela in Mpumalanga," George First said.

Opposition parties
On Monday opposition parties urged the DA leadership to step up and "get their house in order".

"Mayor Melvin Naik and Municipal Manager Trevor Botha should take full responsibility for what has happened here," said ANC Councillor Langa Langa.

Langa said they are short of words to express their disgust about the matter. "Everybody has been kept in the dark. People have been playing dirty politics, making sure that the information surfaces 'correctly'."

He said the DA has been warned that their squabbles and infighting is going to affect the community of George.

Leader of the PBI, Virgill Gericke, said the DA must pronounce itself on the issue of black economic empowerment.

"When this issue served in Council we were brought under the impression that the dates were shifted so that they could consider the PPPFA. The PPPFA essentially targets black entrepreneurs, but also local people."

ANC Chief Whip Nomawethu Jantjies said the DA awards all the big tenders to companies outside of George. FF Plus Councillor Gert van Niekerk said upcoming contractors should be identified for the purpose of joint ventures.

"Let the money stay in George," he said.

DA head of the George Constituency, Tertuis Simmers, took note of the recent media coverage relating to the 'lost' R47,2-million with great concern.

"As the DA we are committed to service delivery for all, which is underpinned by our values of transparent and accountable governance. We are therefore urgently awaiting the outcome of the appeal process as announced by the mayor."

Mayor Melvin Naik (left) received a call from National Treasury on his cell phone yesterday morning lifting his spirits no end. He said the caller from treasury told him the municipality's R47,2 roll-over appeal will be "positively considered". Municipal Manager Trevor Botha also hopes for good news.

Simon Adams, a safety officer of Muravha Building and Civil, confirmed that their teams are on site and working.

"The other matters are being dealt with by the municipality," said Adams.

Read the letter by FF Plus councillor Gert van Niekerk "VF Plus-raadslid reageer op verlore R50 miljoen" on page 41 of today's George Herald newspaper.

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