JABULANI hospital costS almost double

IT'S been more than three years since the tender for the construction of the R536million Jabulani Hospital in Soweto was awarded - but the facility has not even taken shape yet.

IT'S been more than three years since the tender for the construction of the R536million Jabulani Hospital in Soweto was awarded - but the facility has not even taken shape yet.

The Department of Public Works says that the 330-bed facility is expected to be completed in February 2011 - three years later than projected - if all goes well.

The delay has been caused by the previous contractor Ilima Projects being stripped of the contract after it was discovered that the company had not complied with tax law. The company is also alleged to have built the structure incorrectly.

"The new contractor, Maziya General Services, had to correct some of the mistakes in the existing structure before they began with the work," said chief director of public works planning Ivan Pretorius.

"At present progress status is at 33percent of practical completion."

Jabulani Hospital was meant to relieve the overburdened Chris Hani-Baragwanath, especially in 2010.

The R334million tender to build it was awarded in May 2006 to a joint venture of Ilima Projects (leader), Yikusasa Building Contractors SA, TTR General Building Construction and Motheo Construction Group.

The project was to be completed at the end of May 2008. A year after the tender was awarded the joint venture crumbled, resulting in the four partners withdrawing and leaving Ilima in charge.

Ilima then had to outsource some work, resulting in cost escalation. The department had to give the company R358million to cover the new expenses.

But, Sars launched a tax compliance investigation against them where it was found that they had not paid tax for four years.

On this basis the department cancelled the contract in August last year.

Pretorius said: "The department will be taking legal action against Ilima to recover losses suffered by government due to the non-performance of the joint venture."

He said the revised cost now stood at R536million, excluding professional fees, contingency and escalations.

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