The Mbhashe Local Municipality, situated within the Amathole District near Mthatha in the Eastern Cape is being accused of handing over an incomplete taxi rank despite millions alleged to have been spent on financing it.
The news comes a decade after the contractor was reported to have abandoned the contraction site of Xhora taxi rank in 2014/15 due to an ongoing payment dispute with the municipality. This unethical practice has become a common occurrence within the South Africa’s construction industry, impeding service delivery.
Commenting on the news, Amathole District spokesperson Sisa Msiwa says the taxi rank tender, which was funded through the grant from the National Department of Transport to the value of R4.9- million was awarded to Balintulo Trading / Bright Idea Projects.
Msiwa says R1.3 million was spent on the completed phase one of the project, which included a gravel surface holding area, wash bays, an asphalt surface loading area and sidewalks.
She further disclosed that the contruction company’s contract was terminated due to non-performance.
Msiwa further disclosed that the contractor then took the municipality to court after the arbitrator ruled in favour of the municipality, supporting its decision to terminate the contract.
In its defence, Balintulo Trading director Sabelo Balintulo has taken the dispute to court to have the tender reinstated. “The arbitration outcome did not favour us, and we approached the courts to review proceedings,” he said.
The incomplete taxi rank services taxis operating in Xhora and other towns like Butterworth, East London and Mthatha, including long distance taxis to Gauteng and KwaZulu-Natal.
Fed-up taxi operators are up in arms demanding that the municipality take it upon itself to ensure the multi-million-rand taxi rank is completed while the case is heard in court.
According to Yanga Dlali, secretary of Uncedo Taxi Association in Xhora, when the unfinished taxi rank was officially handed over to them, the municipality officials committed that a contractor would be appointed to come complete the outstanding work, but this
never happened.
Dlali disclosed that the taxi rank roofing was donated to the taxi association by a local entrepreneur.
In support of the taxi operators, Balintuli says the company understands their frustrations and will do anything in their power to ensure the matter is resolved. The rank does not have electricity, water, working ablution facilities or stalls for vendors.
“We share the desire to bring this issue to a close and reach a final resolution. We must emphasise that the delay in reaching a resolution was not due to any actions or shortcomings on our part, but rather the municipality,” he pointed out.
