FTLM overpays a contractor by over R8 million

The FTLM has overpaid a contractor over 8 million.

BURGERSFORT – A company contracted for the compilation of valuation and supplementary rolls of the Fetakgomo Tubatse Local Municipality (FTLM), was overpaid by more than R8 million.

This was revealed during their council meeting on Tuesday. The overpayments were made on contract GTM/31/13/14, which is still expected to run untill June 2019. The business was appointed in 2016 by the former Greater Tubatse Municipality (GTM), now FTLM.According to council documents, the contract amount at which the company was appointed – including VAT and contingencies for a period of four years, from July 2016 to June 2019 – is R2 960 000.

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“In terms of payment records, the company has been receiving payments from 2015 on this contract. Payments made to them on this contract is currently amounting to R11 743 248 while the contract awarded to them amounted to R2 960 000 million. It seems that the project was overpaid by more than 300 per cent (R11 743 248 instead of R2 960 000),” the documents from the council meeting revealed.

The Exco committee recommended that the overpayments made to the company be investigated. It also suggested the probe be done by an independent relevant service provider.

Allegations were made that senior staff from the FTLM financial department were suspended because of the blunders, but FTLM spokesman, Kubane Tolo said no one from the municipality was suspended.

“We know of the allegations of overpayment and I can confirm that investigations will be done in this regard. There were no names mentioned of the implicated people. The investigations will reveal names of those responsible in the matter and that is when penalties will be imposed.”

  AUTHOR
Gilbert Motseo

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