In another twist involving the public protector’s office‚ the Minister of Co-operative Governance an.
The company awarded a R27million-a-year job creation tender in April 2004, this week retrenched more than 1000 workers.
Kgatontle Development in Kimberley was awarded the tender by the Northern Cape's Department of Public Works for a three-year road project.
Kgatontle management said they cannot continue with the project because their funds "have been depleted".
Manager LG Katz said the department has not paid them for the new financial year.
Last year the department denied them an increase in funds because "it would violate the Public Finance Management Act and cause further strain on our budget which will result in overspending as well as unauthorised expenditure".
The Municipal Workers' Union said the department allocated R27million for salaries and a further R10million for equipment.
It alleges Kgatontle cannot fully account for this money.