*Phikwe P230 million land servicing project up in smoke
*Ministry of Trade, Lands, SPEDU play hide and seek
The Selebi Phikwe Industrial and Urban Agriculture Land Servicing project under SPEDU (Selebi Phikwe Economic Diversification Unit) has gone up in smoke.
The project which was meant to accelerate Foreign Direct Investment (FDI) in the former copper mining town through the provision of serviced land electricity and internet has been postponed indefinitely.
The the land servicing project was supposed to ease establishment of enterprises by both local and foreign investors.
P230 million had been allocated for the project which was earmarked to unlock opportunities in Phikwe, and revive the town’s ailing economy.
In his State of the Nationa Address on November, 09, 2020 President Mokgweetsi Masisi stated that the project commenced in August and was expected to be completed by June 2023.
“Once complete, the project is expected to create 3, 500 jobs with an investment value of P1,2 billion” said Masisi.
A similar announcement was made by the then Selebi Phikwe Town Council Mayor, Lucas Modimana in a Full Council session.
Modimana said at the end of the project, 1 929 hectares of land would be serviced being 84 hectares of industrial plots, 1 300 hectares of urban agriculture, 480 hectares of tourism and 65 hectares of civic and community plots.
It’s been four years since the President’s remarks, and the project is yet to commence following a contractual battle with the contractor who was ultimately elbowed out by the Directorate of Intelligence and Security (DIS).
The DIS accused the company of winning the tender fraudulently, and the tender was eventually cancelled and the contractor delisted by the Public Procurement Regulatory Authority.
On December, 12, 2023 SPEDU announced the cancellation of a Works tender for the construction of Phase I infrastructure in Bolelanoto and Senwelo Industrial Sites.
The cancellation according to the Caretaker Chief Executive Officer Gideon Mmolawa was due to the ongoing rationalisation of government parastatals that had triggered the review of SPEDU’s mandate.
Gideon noted in the announcement that they were further instructed to transfer all their Land Servicing programmes to the relevant Ministry.
This cancellation prompted the Phikwe West Member of Parliament Dithapelo Keorapetse’s Parliamentary question without notice six days later on December,18,2023.
Keorapetse wanted the Minister of Trade and Industry to explain the termination of running mega projects in Selebi Phikwe, the decisions to relocate some tenders from SPEDU to be managed by Ministries and the cost of relocation.
In his response the Minister Mmusi Kgafela stated that the SPEDU Caretaker CEO and his Ministry took the decision to relocate some tenders to the Ministry of Lands and Water Resources.
He said the decision was taken, due to among others, lack of technical expertise, knowhow and manpower within SPEDU and his Ministry to oversee the implementation and execution of projects of that nature.
“This was also to reduce workload, to be brought about by this works, and instead to afford SPEDU officials time to focus more on the mandate of facilitating investors setting up in the region,” Kgafela said.
The Minister further stated that the costs of termination for contracted and ongoing consultancy projects are yet to be determined.
Keorapetse was however still not convinced.
“Which expertise did SPEDU lose and remains deficient rendering it unable to complete projects of tenders which have been running,” he asked in an interview with The Voice?
He says there’s still no explanation as to why the cancellation and relocation is not affecting the European Union funded projects.
“How do EU funded projects become immune from project management deficiencies present at SPEDU,” he asked.
He said it has been over a year since rationalization was announced, yet SPEDU still operates without a board.
“Who then has fiduciary responsibility for the company?” asked Keorapetse.
Responding to a questionnaire sent to them, on September, 03, the Ministry of Lands and Water Resources Public Relations Officer Donnel Kutlapye said the Ministry of Trade was better placed to respond.
“The Ministry of Trade is better placed to answer the questions as all implementation during all these years was done by SPEDU, our Ministry is currently making arrangements to takeover the projects at the request of Ministry of Trade and they have not yet been transferred to us due to contractual issues which have to be resolved by SPEDU,” was the response from Kutlapye on September, 9.
However his counterpart at the Ministry of Trade, Oarabile Phefo referred all questions to SPEDU.
In her response SPEDU Corporate Communications Manager Sheilla Moribame said as SPEDU they were simply managing the project on behalf of the Ministry as the lead authority and funder in matters involving servicing of land.
What happened to the P230 million allocated for the project?
“The funds were with the Ministry of Lands and thus the Ministry is better placed to provide a response,” Moribame said.
