Shabangu in new R13m row

Posted On Wednesday, 20 April 2011 02:00 Published by eProp Commercial Property News
Rate this item
(0 votes)

Controversial businessman Roux Shabangu is embroiled in another dodgy contractual dispute with the government.

Roux ShabanguThough the state says it paid him more than R13 million in a botched construction of a Mpumalanga police complex, Shabangu says "they are lying".

This squabble has resulted in the construction of a R20 million police station in Tweefontein, Mpumalanga, coming to a dead-end.

Public Works Department spokesperson Thami Mchunu yesterday said an amount of R13472762, 65 was paid to Shabangu before his contract was terminated last year for shoddy work.

"Though I don't want to go into details, I can tell you that the reason the project in Tweefontein has stopped is because the state has not paid us," said Shabangu yesterday.

"The state of affairs in that police station will remain the same until the payment had been made," he said, refusing to confirm or deny Mchunu's claims that the department had paid more than R13 million.

Mchunu said the state did not intend to recoup its money despite the contractual dispute.

"This amount will not be recouped as the company was paid for the work done on site," said Mchunu.

He said the department had terminated its contract with Shabangu because of poor workmanship and that plans were under way to finalise the project as soon as possible.

"There is currently a contractual dispute with the contractor and once the dispute has been resolved, construction on site will resume," he said.

Roux Property Development Afrika was subcontracted in March 2009 by TTR General Building Contractors, which won the R20 million tender in 2008.

Mpumalanga Democratic Alliance leader Anthony Benadie said it was unacceptable that taxpayers' money could be wasted in this way.

"It has been almost a year now since the project was stopped and we wonder why the state is dragging its feet in finalising the station," said Benadie.

He called on the government "to probe the mess and if anyone is found guilty, they must be punished".

Last modified on Thursday, 21 November 2013 14:23

Most Popular

Three stocks to boost your portfolio in 2020

Jan 22, 2020
Dr Adrian Saville CEO Cannon Asset Managers
After enduring a trying decade under the mismanagement and malfeasance of Jacob Zuma,…

Africrest Properties completes mixed-use development, Stanley Studios in Johannesburg

Jan 21, 2020
39 Stanley Avenue
What could be better than living in an extremely well-priced apartment or working in…

New hotspots driving cost hikes in key data centre markets - thriving market in South Africa

Jan 21, 2020
Dan Ayley Turner and Townsend
Major global data centre markets are seeing soaring construction costs as development in…

Equites Property Fund Limited to develop a R1.3 bn warehouse for Pepkor

Jan 21, 2020
Andrea Taverna Turisan  CEO Equites Property Fund
Equites Property Fund Limited (Equites) today announced an agreement with leading…

2020 Commercial Property Themes –Electricity supply and cost will be a key wildcard for the Commercial Property Sector this year

Jan 23, 2020
John LoosFNB
Will electricity supply reliability and cost increases become a key issue again in 2020?

Please publish modules in offcanvas position.