The costs of developing the Mdantsane swimming pool complex soared to more than R56.9m between 2012 and 2024, with little to show for it.
And on Friday the metro council was informed that a further R14.5m was needed for the “rehabilitation and completion” of the complex, which would take the total spend to more than R71m.
The new tender is set to be advertised in January.
While it was recently reported that the incomplete project had so far cost Buffalo City metro ratepayers more than R30m, in fact, nearly twice that amount has already been pumped into it.
This was disclosed in a confidential report by forensic investigators Ernst & Young Advisory Services, which was meant to be tabled at an ordinary council meeting last week.
The “top secret” report, seen by the Dispatch, shows that over the years, money was distributed to more than 60 companies, some of which had nothing to do with the NU2 pool upgrade.
The investigators found money had also been paid to service providers “with close ties or links” to some metro officials.
The damning report was withdrawn from the council agenda at the 11th hour by metro political bosses, who felt tabling and discussing it while the matter was also being investigated by the Hawks was inappropriate.
As the council meeting began on Friday, mayor Princess Faku said the report was to be withdrawn because it was now “sub-judice”.
But the matter is not before any court.
Faku said the decision to withdraw the report arose after the metro “had had some visitors in the form of the Hawks” in the week.
On Monday last week, Hawks investigators raided two BCM premises and seized documents relating to the project.
It is understood that the decision not to table the report was taken by most ANC councillors at a caucus meeting the previous day.
The council sanctioned the forensic probe early this year.
Another report on the swimming pool project, from the watchdog Municipal Public Accounts Committee, was also withdrawn from the council proceedings on Friday.
Instead, a progress report on the pool’s upgrade was tabled in the meeting by acting city manager Bob Naidoo.
It is this report it says the city would need an additional R14.5m for the “rehabilitation and completion”.
Naidoo’s report showed the latest tranche of funds for the project would include R1.2m for “professional fees” and VAT.
According to the Ernst & Young report, the Mdantsane facility has been closed since the 1980s.
“It was later inherited by BCM, which has made renovation promises and financial commitments dating back to 2009.
“The project has, however, consistently encountered delays, primarily due to funding and procurement issues, causing frustration among council members and the community.”
In 2017, project consultants were appointed, but “despite that the project continued to face delays and incomplete work”.
A project consultancy was appointed as the principal agent and technical project managers, with another company appointed in 2020 as the main contractor, but this main contractor terminated its contract with BCM in May 2022 amid a contractual dispute.
Neither company can be named as they could not be reached for comment by the time of publication.
According to the Ernst & Young report, more than R13.7m was paid to 46 service providers who had nothing to do with the pool project, with the investigators saying: “Our analysis did not investigate the reasons for the involvement of these service providers, nor did we evaluate the extent of work completed for the swimming pool project, as such information was not included in the project files.”
Among the investigators’ recommendations was that action needed to be taken against metro officials found to have had a hand in the alleged abuse of ratepayers’ money.
“The findings indicate potential conflicts of interest where entities connected to BCM employees received payments from the municipality.
“This raises concerns about compliance and integrity.”
The report recommended consequence management against senior metro managers and officials.
It also highlights significant delays, financial discrepancies and poor project management.
The Municipal Finance Management Act stipulates senior managers and accounting officers are responsible for preventing unauthorised expenditure.
The report found “discrepancies in the procurement process”, poor management, quality issues, financial discrepancies and concerns about the accuracy of financial reporting.
BCM could also move to recover costs for defective work.
“BCM could investigate these service providers for potential collusion or unethical practices and pursue legal action if any wrongdoing is found.”
With law enforcement agencies trying to close the net on those responsible for this project’s problems, the Special Investigating Unit has now entered the fray.
On Friday, the council was told the SIU had written to the municipality demanding a copy of the forensic report before they could approach President Cyril Ramaphosa to sign a proclamation to investigate the matter.
DA chief whip Anathi Majeke said: “It is unfortunate that the sub-judice excuse has been raised for not presenting or debating this item.
“However, the Hawks are an investigative agency, not a court of law. The matter is therefore not under judicial consideration and is therefore not sub-judice.”
A few weeks ago, the EFF opened a criminal case at the Mdantsane police station alleging corruption in the pool project.
EFF councillor Mziyanda Hlekiso said on Friday: “It is not correct for the council to withdraw this report on the basis that the mayor had said the matter was sub-judice when it is not the case.”
Mdantsane residents have raised concerns about the huge amount already spent on the project.
Iminenge Swimming Academy director Anunu Mpahla, who started an NPO to teach township children to swim, had been forced to transport her more than 20 aspirant swimmers to Nahoon for their swimming lessons.
She said she had lost all hope that the NU 2 pool project “will ever be completed”.
Community activist Thabang Maseko said he was upset that Mdantsane was “being sidelined” while the sprawling township had proven itself as a sporting talent zone, with swimming facilities non-existent.
Resident Mlamli Siwisa said it was a “shame and an embarrassment” for the city to have pumped so much money into the project, “while our children, young aspirant swimmers, remain in limbo”.
DispatchLIVE
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.