31 August 2020 - NW1858
Tshwaku, Mr M to ask the Minister of Health
What happened to the R3,5 million that his department allocated to refurbish the Laetitia Bam Day Hospital in Port Elizabeth?
According to the Eastern Cape Department of Health, of the allocated budget to the Project, 4 (four) payment certificates were processed and paid to the contractor appointed (Ikhono Projects) which amounted to a total of R461,520.40, with a retention of R24,290.54 still held back by the Eastern Cape Department of Health.
Due to the Contractor initiating a termination of the contract, as a result of late payments, and thereafter vacating the site, the remaining budget was re-prioritized by the Eastern Cape Department of Health to fund other Projects within the project portfolio. This re-prioritized budget would be re-allocated in the following financial year once a new contractor has been procured or an alternative resolution being arrived upon between the two parties (the Department and Ikhono Projects).