SIU sets aside Limpopo’s controversial Talana shack tender

The construction of the temporary residential areas in the province was found to have been dubious.  

The tender document signed off on close to 200 structures to the value of R12.3 million.

An extension of the scope was approved to include the construction of 152 pit toilets and installation of three water tanks for an additional fee of R3 million, taking the contract value to R15.3 million.  

But only 40 shacks were built, with the service provider pocketing R2.5 million between April and October last year. 

SIU spokesperson Kaizer Kganyago says the agency will approach the Special Tribunal to review and set aside the contract, as well as to recover financial losses suffered by the state. 

“The appointed service provider, Aventine Group CC, made misrepresentations and forged documents of industry experts with no links to the company to influence the direction of the bid,” Kganyago adds. 

“Furthermore, the SIU made a referral to Housing Development Agency recommending that the service provider be restricted from doing business with government. The matter has been escalated by the agency to the National Treasury for consideration.” 

Limpopo Premier Stan Mathabatha came under fire in August last year when he unveiled the 40 structures. 

Each unit was estimated to have cost at least R60 000.  

The shacks were constructed as an alternative to the overcrowded and dilapidated Talana Hostel in a bid to ensure social distancing during the Covid-19 pandemic.  

Parts of Burgersfort were also identified as a problem area but no structures were built to completion in the area. 

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