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City sued over R5m guardrail deal

23 January 2014
Rochelle de Kock

A LEGAL spat between the Nelson Mandela Bay Municipality and the company it hired to repair guardrails and fencing in 2010, Moko Construction, will be in court on Monday.

This comes after the municipality refused to pay Moko Construction R5.4-million for work allegedly completed because a company hired to verify the work, GIBB Engineering and Science, claimed that the invoices had been inflated.

A second company, Letsunyane, was hired to also physically verify the work done and found that while there had been irregularities, it did not constitute fraud.

In a confidential report by city manager Mpilo Mbambisa to the municipal public accounts committee, he reported that Moko Construction had submitted three invoices which totalled R5.437-million for work done for the municipality based on a verbal agreement.

Although the metro approved two of the invoices – for R935000 and R1.5-million – it refused to sign the third invoice for R2.9-million because it could not find the guardrail work that had been done.
 

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