The eThekwini Municipality has allegedly forked out R579 million for a street light project that failed to see the light of day.
According to News24 the project to fix and maintain lights across the city was initially meant to cost R91m. Questions are now being asked as to why and how the amount was inflated.
Several of the 18 companies hired to carry out the work between November 2019 and January 2020, have accused the City of lying.
The municipality has reportedly launched a forensic investigation into the matter.
According to News24, the spreadsheet naming the companies was penned by a senior official within the City’s supply chain department.
The spreadsheet reportedly states Nsephe Electrical as one of the biggest beneficiaries, with R32m, R43.6m and R43.7m being paid between November, December and January.
ES Electrical was another company named, allegedly receiving a payment of R23.7m and then two payouts of R33.5m.
Speaking to News24, Nsephe Electrical director Goodman and David Sithole of ES Electrical dispute the amounts.
Quoting a senior council executive, News24 said R100m had been set aside for the contract.
The executive said the contract, which was meant to run for two years had to be cancelled after the City ran out of funding seven months into the contract.
Opposition parties have expressed concern over the allegations, adding that the City’s head of electricity, Maxwell Mthembu must provide answers as most streets in the metro were in darkness.
IOL