R149m 'tender bending' lawsuit

Hospital room. Photo: Eugene Coetzee
Hospital room. Photo: Eugene Coetzee

The Coega Development Corporation (CDC) is suing the Eastern Cape Department of Health for R149-million in fees for work it has done for Bhisho‚ alleging that the money was withheld because it refused to bend tender regulations.

The dispute‚ according to the CDC‚ has led to project delays and ultimately disadvantaged communities who require health infrastructure to improve their lives.

As an implementing agent for the Department of Health‚ the CDC is responsible for project management of healthcare infrastructure planning‚ development and facilities management in Nelson Mandela Bay and elsewhere in the province.

One of the CDC’s main allegations is that the urgency of work was fabricated to bypass regulations and issue emergency tenders to preferred service providers.

But the department has hit back‚ saying it is being dragged into corruption allegations without substantiation.

The Herald


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