- SPEDU will lose millions every month to a suspended tender
- Court rules for auctioning of SPEDU property, SPEDU may close down
- SPEDU says their hands are tied by the DIS tender suspension
- SPEDU will not be opposing monthly payment demands for works on cite
If the government does not move swiftly to intervene, the Selebi Phikwe Economic Unit (SPEDU)’s troubled P1.2 billion tender will not only drain the public coffers but will close down SPEDU – an arm created to coordinate investment promotion and economic diversification in the SPEDU region.
The court yesterday ruled that SPEDU should pay the contractor, Marcian Concepts (PTY) Ltd over P30 million which they have been declining to pay due to issues relating to the contractual impasse. This was pronounced after the contractor slapped SPEDU with several interim payment certificates as per the FIDIC conditions of contract. The court yesterday thus ordered for the execution of SPEDU property to recover the debt for the contractor.
Marcian Concepts’ lawyers say that they are left with no choice but to keep slapping government with bills every month because their machinery and staff are on site awaiting the government’s decision to start work.
The contractor remains doing nothing on site but will be issuing other certificates ranging into millions of Pula every month end from now on until the government decides it’s enough. Projections suggest that if nothing is done, SPEDU will be lucky to survive deadlock. This further suggests that the project will suffer serious hair-raising cost overruns for a government that claims to be broke.
The Directorate of Intelligence Services (DIS) suspended the SPEDU tender claiming the tender was still under investigations. Since then, nobody including the parent Ministry of SPEDU, Trade and Investment, knows what the next step is.
On the other hand the independent project engineer is reported to have declined to cancel the project outside contractual agreement, while the Ministry has given the DIS an ultimatum of producing their reasons or findings in writing to justify for the cancellation. The DIS, sources say, does not want to accede to the request.
The SPEDU Industrial and Urban Agriculture Land Service project according to President Dr Mokgweetsi Masisi is estimated to create 3,500 jobs for the region which is a vast economic zone that boasts of a population of over 200, 000 spread across 52 villages that surround Selebi Phikwe.
The project was expected to be completed by June 2023 but suggestions are that the timelines will be compromised by the ongoing feud over the project.
Meanwhile, SPEDU and Marcian Concepts are still at loggerheads over payment of the hefty debt as ruled by the court.
Marcian Concepts lawyers have revealed that they are not eager to attach and auction SPEDU property but will rather give them a bit of time to settle the millions.
The sympathy is allegedly motivated by the fact that “SPEDU” has got nothing to do with the impasse and should not be made to suffer the consequences of another man. However if push comes to shove the lawyers say they will move accordingly to use the order.
The DIS which has previously been cautioned by the courts for their interference in tenders has repeatedly denied their role in the tendering process.
