Wednesday, March 13, 2013

R49m spent on Nkandla consultants:

More than R49 million was spent on consultants involved in building projects at President Jacob Zuma's Nkandla home, Democratic Alliance MP Anchen Dreyer said yesterday.

While the generally-accepted norm for consultants fees in the building industry was "about 18% of the total cost of the contract", those paid at Nkandla where "almost double" this figure, she told MPs in the National Assembly.

"While we know that the total cost for the Nkandla project amounts to R210m, the amounts paid on consultants warrant a closer look... a total of R49.1m was spent on consultants."

Dreyer said this figure included:
- payment of R2.8m to mechanical engineers Mustapha Cachalia;
- a total of R4.8m paid to two electrical engineering companies, Igoda Projects and CA du Toit;
- R5m to "Ramcon project manager";
- R6m to structural engineers Ibongho Consulting cc;
- R13.8m to quantity surveyors Ilangalethu Consulting; and,
- R16.6m to Minenhle Makanya Architects.

"In Nkandla, consultant fees constituted 30.4% of the total cost of the contract. This raises the question: Why were they paid so far above the industry norm?"

Dreyer called on Public Works Minister Thulas Nxesi to table his report on spending at Nkandla "without any further delay".

Responding in the House, Nxesi said a preliminary investigation into spending at Nkandla had revealed "irregularities", and investigations, by both the Public Protector and the Special Investigating Unit, were underway.

"Honourable Dreyer appears to have more information. Please, come forward with that information, we need it," he said.


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