Question NW1858 to the Minister of Health
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?
Reply:
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).
END.