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R170m and still no water

Dodgy tender processes and ministerial intervention turn water supply project into a pipe dream

1 April 2016 – A new resource has been added to the PM World library related to Project Failures.  The resource is titled “R170m and still no water”. This project is located in Giyani, Limpopo, South Africa; this story reported by City Press on October 14.

In October 2014 the town of Giyani and surrounding areas launched a project to supply consistently supply water to the villages.

160401 - Mitchell - R170m IMAGE“The investigation has revealed that the three companies – LTE Consulting, and construction companies Khato Civils and South Zambezi – were awarded a R502 million ($32million) tender in September 2014 to improve the water supply to the entire Mopani District Municipality. LTE ceded the contract to Khato Civils on October 10 – and three days later that company was paid R170 million ($6.9m). Documents obtained by City Press show this payment as R100 million ($6.4m) in “advances”, and the remaining R70 million ($4.5m) for “measured work” that had already been completed.”

“But 18 months later, there is still little water to be had in Giyani’s taps.”

To access this new project failure story, go to, click on “Failed Projects”, scroll down to RSA and click on “R170m and still no water”. Must be a registered member to access.

Posted by: Gary Mitchell