THE Ekurhuleni municipality is trying to recover millions paid to companies for work not done.
Lucmer Construction was paid R18.5-million for the construction of water and sewer network systems and toilet structures for 746 stands in Moleleki Extension 1 and 2 in Katlehong.
But the company, owned by MRD Schwartz, MT Schwartz and Elizabeth Irion, did not perform.
The municipality has blacklisted the company together with four others, namely FAIAUD Transport Services, Nikiwenono Construction, Gasa General Construction and Mascrete Group, for non-performance.
Some of the owners of these companies have also been blacklisted.
"Lucmer Construction therefore failed to proceed with the works with due diligence. On March 28 2011 the contract with Lucmer Construction was cancelled due to non-performance," municipality spokesman Justice Mohale said.
He said the "guarantees were provided by New National Assurance".
"When the said company was informed that the contract with Lucmer Construction was cancelled and that the company must pay out the guarantees, they informed the council that they did not issue the guarantees in favour of Lucmer Construction."
He said the law firm Corporate and Legal has been appointed to recover R3.1-million from New National Assurance.
FAIAUD Transport Services is owned by A Nyakane and was paid R3.349-million for the construction of early childhood development centres and day care centres for elderly people in Daveyton.
"The contract failure was due to the fact that the contractor failed to meet certain milestones and after the measures as per the contract was exhausted, the contract was cancelled," Mohale said.
Nikiwenono Construction is owned by Siphiwe Kama Mlaba who has also been blacklisted. The company was paid R5.3-million only for the work completed for the construction of bulk services, landscaping and irrigation at the Tsakane Multi-Purpose Park.
Mohale said the supplier did not complete the work, progress was very slow and eventually they admitted that they could not complete the work. Their contract was cancelled.
MC Sefara and GB Mabena own Gasa General Construction and have also been blacklisted. They were paid R1.5-million for portions of work done for the geometric improvement of existing roads in the northern region.
Masenya MKM is owner of Mascrete Group and has also been restricted. Masenya was paid R1.166-million for portions of work done for the upgrading of the storm water system in Glen Marias, Kempton Park.
The companies blacklisted by Ekurhuleni appear on the National Treasury list of "restricted" companies barred from doing business with the government.
Ekurhuleni in bid to recoup millions
THE Ekurhuleni municipality is trying to recover millions paid to companies for work not done.
Lucmer Construction was paid R18.5-million for the construction of water and sewer network systems and toilet structures for 746 stands in Moleleki Extension 1 and 2 in Katlehong.
But the company, owned by MRD Schwartz, MT Schwartz and Elizabeth Irion, did not perform.
The municipality has blacklisted the company together with four others, namely FAIAUD Transport Services, Nikiwenono Construction, Gasa General Construction and Mascrete Group, for non-performance.
Some of the owners of these companies have also been blacklisted.
"Lucmer Construction therefore failed to proceed with the works with due diligence. On March 28 2011 the contract with Lucmer Construction was cancelled due to non-performance," municipality spokesman Justice Mohale said.
He said the "guarantees were provided by New National Assurance".
"When the said company was informed that the contract with Lucmer Construction was cancelled and that the company must pay out the guarantees, they informed the council that they did not issue the guarantees in favour of Lucmer Construction."
He said the law firm Corporate and Legal has been appointed to recover R3.1-million from New National Assurance.
FAIAUD Transport Services is owned by A Nyakane and was paid R3.349-million for the construction of early childhood development centres and day care centres for elderly people in Daveyton.
"The contract failure was due to the fact that the contractor failed to meet certain milestones and after the measures as per the contract was exhausted, the contract was cancelled," Mohale said.
Nikiwenono Construction is owned by Siphiwe Kama Mlaba who has also been blacklisted. The company was paid R5.3-million only for the work completed for the construction of bulk services, landscaping and irrigation at the Tsakane Multi-Purpose Park.
Mohale said the supplier did not complete the work, progress was very slow and eventually they admitted that they could not complete the work. Their contract was cancelled.
MC Sefara and GB Mabena own Gasa General Construction and have also been blacklisted. They were paid R1.5-million for portions of work done for the geometric improvement of existing roads in the northern region.
Masenya MKM is owner of Mascrete Group and has also been restricted. Masenya was paid R1.166-million for portions of work done for the upgrading of the storm water system in Glen Marias, Kempton Park.
The companies blacklisted by Ekurhuleni appear on the National Treasury list of "restricted" companies barred from doing business with the government.
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