Malema woes worsen - 4 firms not on CIDB database

NONE of the four companies owned or directed by ANC Youth League president Julius Malema is registered with the Construction Industry Development Board. This means that Limpopo municipalities that gave him tenders did so illegally. They did not check with the CIDB before awarding the tenders. The CIDB is the construction industry regulatory body whose board reports to the minister of public works. SGL Engineering Projects, 101 JunJus Trading, Blue Nightingale Trading 61 and Ever Roaring Investments, of which Malema is a co-director, were not on CIDB’s database.

The CIDB was established through the Construction Industry Development Board Act No 38 of 2000.

“Public institutions are responsible for making sure that the companies they award tenders to are graded and regulated by the CIDB,” said spokesperson Katli Molise. According to the Act, no contractor may undertake, carry out or complete any construction works for public sector contracts, awarded in terms of competitive tender or quotation, unless he or she is registered with the CIDB and holds a valid registration certificate issued by the CIDB.

The CIDB requires employers of private and public sector projects to apply to the CIDB for the registration of a construction project within two working days from the date that the contractor’s offer to perform the construction work is accepted by the employer. Every organ of state must, subject to the policy on procurement, apply to the registrar of contractors. CIDB spokesperson Kotli Molise said it was up to a public institution to make sure that its contractors were graded by the CIDB. “Anyone can undertake to provide a construction service to a public institution, but they must comply with industry regulations,” she said.

Meanwhile, the Limpopo government will not take action against any municipalities that had allegedly given tenders to Malema before receiving a formal complaint. A weekend newspaper reported that Malema had benefited in tenders from several municipalities in the province. This was followed by allegations that Malema had got the tenders illegally by intimidating mayors and municipal managers that if they did not tow the line they would be fired. But Phuti Mosomane, spokesperson for Limpopo premier Cassel Mathale, said for as long as there had been no formal complaint lodged by anyone, then there would be no need for the government to act. “We have not received any formal complaint about the allegations of issuing of tenders illegally and there is no basis for us to act,” said Mosomane. He further challenged those with evidence to come forward. Asked if they did not care about government resources being looted in public view, Mosomane could only say “that does not arise because we are not aware of any irregularities being performed in any of our institutions”.

Sello Moloto, leader of the Cope in the Limpopo legislature, said they would lodge a complaint with MEC for local government and housing Soviet Lekganyane. His department is responsible for municipalities.

Source: The Sowetan

CONSTRUCTION INDUSTRY DEVELOPMENT BOARD ACT 38 OF 2000

The purpose of the CONSTRUCTION INDUSTRY DEVELOPMENT BOARD ACT is to provide for the establishment of the Construction Industry Development Board; to implement an integrated strategy for the reconstruction, growth and development of the construction industry and to provide for matters connected therewith.

Preamble

WHEREAS the construction industry plays an indispensable role in the South African economy in providing the physical infrastructure which is fundamental to the country’s development;

WHEREAS the construction industry experiences instability and interconnected structural problems which are associated with the declining demand in recent decades, the volatile nature of the demand and the consequent shedding of labour;

WHEREAS the construction industry operates in a uniquely project-specific and complex environment, combining different investors, clients, contractual arrangements and consulting professions; combining different site conditions, design, materials and technologies; combining different contractors, specialist subcontractors and the workforce assembled for each project;

WHEREAS the development of the emerging sector is frustrated by its inability to access opportunity, finance and credit as well as vocational and management training;

WHEREAS investment in physical infrastructure is constrained and there is a need to promote effective public sector spending and private sector investment and to interpret investment trends;

WHEREAS the construction industry impacts directly on communities and the public at large and its improved efficiency and effectiveness will enhance quality, productivity, health, safety, environmental outcomes and value for money to South African society;

WHEREAS the specialised and risk-associated nature of construction places an onus on the public sector client to continuously improve its procurement and delivery management skill in a manner that promotes efficiency, value for money, transformation and the sustainable development of the construction industry;

WHEREAS the development of the industry requires leadership and the active promotion of best practice; and

WHEREAS Government has a vision of a construction industry development strategy that promotes stability, fosters economic growth and international competitiveness, creates sustainable employment and addresses historic imbalances as it generates new construction industry capacity;

Source: SABINET