City of Tshwane residents, this is where your tax money is going to – Tshwane spends R60 000 daily on abandoned business park

The City of Tshwane is spending at least R60 000 daily on the abandoned R525 million Business Processing Outsourcing park (BPO) in Hammanskraal.

Launched in 2016 by the then ANC administration, the project promised to create 3000 jobs through on-site training, technical support and incubators for small and medium micro-enterprises.

It stalled under the watch of former mayor Solly Msimanga, who attributed its stoppage to a group of local business people demanding work during the construction phase.

However, MMC for Economic Development and Spatial Planning Isak Pietersen said part of the problems related to the nature of litigation between the City and the previous contractor. “We need to negotiate and make sure we settle that because the aim of the executive mayor is to unlock it and make sure the project runs so that the community can benefit out of it,” he said.

Pietersen disclosed that the City was bound to pay the main contractor R60 000 a day to honour its contractual obligation.

“It is the issue of saying how we settle the matter, because remember, each and every day that passes by there is an amount that we must pay to the main contractor. I think it is around R60 000.”

He said he was working hard to iron out issues with the contractor.

“At the moment I have to sit down with the city manager (Dr Moeketsi Mosola) as urgently as possible (to conclude the matter).” he said.

Executive mayor Stevens Mokgalapa said he expected to receive a comprehensive report about the project this week. He said he had raised concerns about the project with Premier David Makhura. He was finalising the integrated development programme and the budget for 2019/2020, and the BPO would form part of his priorities.

African News Agency
This report does not necessarily reflects the opinion of SA-news.


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