The DA is confident that the SAAME Building will be completed in 2023

by Cllr. Desmond McKenzie — DA Member of Transport Planning Oversight Committee in Ekurhuleni

Date: 06 December 2022

Release: Immediate

Type: Media Statement

The Democratic Alliance (DA) in Ekurhuleni welcomes the Oversight Committee Report on the Unannounced site visit to the SAAME Building Project in Germiston on the 13th of October 2022. The aim of the site visit was to verify and validate the reported progress on the project as reported in the Unaudited Annual Report for the 2021/22 financial year.

The committee has been monitoring the implementation of this project for the last three financial years and has noted that the project has been experiencing implementation challenges. The upgrading and renewal of the SAAME building is part of the Germiston Urban Renewal flagship programme that was initiated over 3 years ago. The aim of the project is to transform the 50-year-old building into a modern landmark that will not only define the future of Germiston but also draw on the prescripts of the City’s vision and model for urban development.

Upon approval, the project was viewed as a progressive initiative by the city. However, our optimism and excitement were short-lived due to the shenanigans that ensued which included amongst other things, ongoing legal disputes, expired contracts, material shortages, and overdue and non-payment of invoices to external contractors, which caused numerous project delays and an escalation in project costs.

Here are some of the key risks and challenges highlighted in the report:

• An expenditure of R 47.2 million against the budget of R100 million, with many outstanding invoices that were submitted in June 2022.
• Subcontractors and workers are not paid timeously.
• Overdue payments and invoices.
• Delays in supply chain processes on the appointment of professional staff.

Despite the national lockdown, the former administration did not responsibly manage the numerous projects across the City of Ekurhuleni, many are standing unfinished, of which the SAAME building is just one. It is evident that the previous Administration made no effort to ensure that this project was completed within the stipulated timeframes. The project is now 6 years behind schedule and has cost the city millions. The original cost of the renovation was estimated at R30 million. It now stands at a whopping R90 million (a variance of more than R60 million).

Since the Multi-Party Coalition took power in the City, the project has been fast-tracked and is more stable. With the new contractor being appointed, the Coalition is confident that the project will be completed by March 2023.

Attached to this media statement are pictures of the SAAME building taken on the 06 December 2022.

Media Enquiries

Cllr. Desmond McKenzie

DA Member of Transport Planning Oversight Committee in Ekurhuleni

082 454 4407