RESPONSE ON UMZIMKHULU MEMORIAL

Umzimkhulu Local Municipality commissioned the services of Loyiso Consulting to develope a business plan for the upgrades, renovations and restoration of Umzimkhulu Memorial Hall including additional structures. Upon approval of the business plan, the municipality advertised for the implementation of the business plan. The feasibility study that was conducted aligned with the business plan proposal came with an estimated cost of R22million to finish all the required scope. However due to the limited funds, the scope had to be reduced to be within 17.9million. The tender was awarded to a consortium formed by Loyiso Consultants for the implementation of the approved business plan. Loyiso Consultant was also tasked to source funds from various funders to ensure that the project could be finished within the required scope and a proposal was sent to National Lottery and CoGTA`s 1 Small Town Rehabilitation programme which both failed to secure funding. During implementation there were various problems encountered by the municipality emanating from non-performance or poor performance by the consortium which led to the termination of the consortium. Following the termination of the consortium, the municipality developed terms of reference for the completion of the partially built structure and rehabilitation of the existing hall. Processes led to the tender awarded to Buyeye Consulting, a Quality Surveying practice previously involved in the project as a Quantity Surveyor. Buyeye Consulting appointed at R14525018.05 a) 13/06/2016 R653 380.28 Professional fees. b) 30/06/2016 R1655 680.37 Work done and materials procured. c) 24/08/2016 R1701 115.91 Materials procured. d) 21/12/2016 R1540 002.68 Professional fees and work done. e) 26/06/2017 R503 617.34 Work done Total amount paid to date for professional fees and constructor: R6053 769.58