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Contracts ended

By Alex Matlala | Jan 22, 2010 | COMMENTS [ 0 ]

THE Limpopo department of local government and housing yesterday terminated the contracts of 42 non-performing companies appointed to build RDP houses in the province.

The terminations come after a month-long probe by the department into the progress of the construction of the houses and whether or not those already erected were of good quality.

MEC for local government and housing Soviet Lekganyane appointed a group of inspectors to check the houses and report back to him on Monday.

Following the findings, Lekganyane terminated the contracts of those who did not meet the expectations of their contracts.

Lekganyane said his department was in the process of appointing new companies.

He said the companies would be required to pay an upfront guarantee fee to the department.

Lekganyane also said the department had become vigilant in holding retentions of the money paid to the contractors to allow the department to pay 95percent of the claim after the completion of the project and pay the remaining 5percent after six months.


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