Note to Editors: Please find attached English and Afrikaans soundbites by Cllr Riëtte Dell and Sesotho soundbite by Jafta Mokoena MPL. See attached picture here.
The Democratic Alliance (DA) immediately wrote to the Municipal Manager after discovering concerns regarding the contractor appointed for the R20 million rehabilitation of the Laaispruit (Marquard) Dam wall. Following our own research, the DA identified several issues regarding the contractor’s legal and financial standing and requested an official explanation from the Municipality.
In the Municipal Manager’s written response, it was confirmed that the tender (T11 of 2025/26) was evaluated on 26 August 2025, awarded on 1 October 2025, and the contract signed on 20 October 2025. The Municipality further acknowledged that it was not aware of an earlier High Court judgement (Free State Division, 7 July 2025) which had raised questions about the contractor’s business-rescue status.
Although one of the legal disputes was reportedly withdrawn on 22 May 2025 after an out-of-court settlement, a related matter remains before the court, with judgment reserved following a hearing on 26 October 2025. Despite this ongoing uncertainty, the Municipality stated that it will not suspend or reconsider the appointment while awaiting the reserved judgment. The DA will follow up on this issue at the next Council meeting.
What is most concerning is the Municipality’s admission that its due diligence process relied mainly on documents submitted by the bidder itself, a single bank rating letter, and a Google search, rather than any independent verification of the bidder’s legal or financial position.
The DA has since obtained the bank-rating document dated 29 October 2025. The document assigns a “C” rating for a facility of R20 million over 24 months, meaning the account is generally satisfactory but reflects only a moderate capacity to meet financial commitments. Such a rating does not guarantee financial stability or liquidity, and its timing raises further questions about whether proper financial verification was completed before the contract award.
The DA does not seek to have the contractor dismissed or to interfere in project implementation. Our concern is that the Municipality must perform its due diligence before awarding multimillion-rand contracts, not after problems are discovered. It should never be the responsibility of councillors or the public to alert the administration to potential risks that should have been identified through proper internal vetting and legal checks.
Given the R20 million public investment at stake and the history of failed projects within Setsoto, this approach is wholly inadequate. As seen with previous failures such as the Local Bloem Street and R708 provincial road projects, taxpayers ultimately bear the cost when the government fails to verify contractor information accurately.
The Marquard Dam wall has remained deteriorating for several years. Earlier tenders in 2021 and 2022 collapsed, resulting in the withdrawal of conditional-grant funding and leaving residents dependent on the distant Holstein Pumping Station near Ficksburg. Each year of delay has further compounded the cost and the water security crisis faced by the communities of Marquard and Moemaneng.
The DA will be referring the matter to the Setsoto Local Municipality Municipal Public Accounts Committee (MPAC) for investigation into the Municipality’s procurement processes and risk exposure.
After two failed tender processes and years of inaction, the residents of Marquard deserve more than another uncertain appointment. The DA will continue to demand transparency and accountability to ensure that this critical infrastructure project does not collapse once again.