A last-minute R35-million payment to Kaulani Civils which has been constructing a road between Koster and Lichtenburg in the North West has saved the provincial Public Works, Roads and Transport Department's assets. This follows Court judgment in favour of Kaulani.
The department has been ordered to pay the company a total of R64 million. Spokesperson for the department Matshube Mfoloe says: 'I can confirm with you that an amount of R35 million was paid into Kaulani's account and proof of payment was also faxed to the offices of Kaulani as well as to their Attorneys." Kaulani Civils has been constructing the road between Koster and Lichtenburg. This follows a court judgment in favour of Kaulani. The payment has saved the department its assets which were to be confiscated.
In January the department terminated the contracts of two road construction companies which were allegedly engaged in corrupt activities during the awarding of the tenders - one of which was Kaulani Civils. The action followed after the suspension of senior department officials. The projects awarded come to a total of R400 million.
Opposition parties in the province raised their concern on how the matter was being handled. The Democratic Alliance's Chris Hattingh said: "Everything is done and there is no indication that any funds will be availed to work on any roads in this financial year, even those that we need for 2010 World Cup."
The department has vowed to complete the stalled multi-million rand road projects before the beginning of FIFA World Cup tournament in the country in June.
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