Question NW3763 to the Minister of Human Settlements
08 December 2023 - NW3763
Pambo, Mr V to ask the Minister of Human Settlements
(1)Following the total pre-payment of R23 million by the Housing Development Agency in December 2021 to Thoba Mkangisa & Associates, KSMD Engineering Consultants, MIB Infrastructure and Development and Siyeza Consulting Engineers (Pty) Ltd, for providing professional engineering consultation services on upgrading informal settlements of over 30 000 households in seven district municipalities in the Eastern Cape, (a) what necessitated the advanced payments to the specified companies when they were only appointed on 30 November 2021 and accepted such appointments on 15 December 2021, on the same day they submitted invoices; (2) Whether actions were taken against employees who approved the advance payments; if not, why not, if so, what are the relevant details?
Reply:
(1) (a) According to the information provided to my office by the Housing Development Agency (HDA), the companies were appointed and contracted by the HDA in accordance with the prescribed supply chain regulations to provide professional technical consulting services for the Informal Settlements Upgrading Programme in the Eastern Cape.
Upon completion of the procurement processes, the Professional Technical Consultants (PRTs) were given instructions to carry out work in accordance with the approved terms of reference, and a virtual inception meeting was held on 30th November 2021.
It is important to note that the professional contracts between the HDA and the companies do not include provisions for any pre-payment. Therefore, any payments made by the HDA to these companies, as claimed by the Honourable Member, were made in accordance with Part C3 of the terms of reference, as per the contracted scope of works. This section clearly outlines the payment milestones, duration, and payment schedules associated with the deliverables being claimed.
The Agency vehemently denies any allegations of pre-payments and unequivocally asserts full compliance with the prescribed procedures and contractual obligations while disbursing payments to the aforementioned companies.
(2) No action was required against the employees.