Failed government project: R63 million spent, 3 contractors paid, but it remains incomplete 9 years later

Construction of the Park Road Police Station in Bloemfontein began in 2017 but remains incomplete despite numerous interventions.

In 2016, a R31 million refurbishment project was undertaken at the Park Road Police Station with a 24-month completion timeline.

Fast-forward to July 2026, and the project remains incomplete despite R63 million already having been spent.

Minister of Public Works and Infrastructure, Dean Macpherson, explained the delay in response to a Parliamentary question regarding the project.

He said that the project was implemented by the Development Bank of Southern Africa (DBSA) on behalf of the Department of Public Works and Infrastructure.

The initial contractor, Soaring Summit Development, was appointed in 2017. However, it could not complete the project due to poor performance on-site.

During 2019, they opted to cede the contract to another construction company, Ikaheng Plant Hire Developers.

“Unfortunately, the company could not proceed with the project from the outset and opted to terminate the appointment,” Macpherson said.

Following termination by Ikaheng Plant Hire Developers, another planning process was undertaken, and the DBSA re-advertised the project.

Mpfumelelo Business Enterprise was appointed as the successful bidder and commenced the works in January 2021.

“At the initial stages, the project progressed well. However, it started to slow down due to various reasons,” Macpherson said.

These reasons include slow progress on site, late payments and withdrawal of professional service providers on site, which were eventually resolved.

Mpfumelelo Business Enterprise continued providing on-site services at a minimal pace and eventually terminated its services in April 2024.

The main reason for terminating its services was that the Development Bank of Southern Africa could not process payments on time.

“The termination was effected by invoking the relevant contractual clauses for breach of contract due to late payments,” he said.

Actions taken to address the problems

Macpherson said that the Department of Public Works and Infrastructure is evaluating the DBSA’s performance on this contract.

He said that this evaluation is aimed at pursuing action against all relevant parties for the poor performance.

He said that the Development Bank of Southern Africa has already commenced with measures to recover funds from defaulting contractors.

The Department of Public Works and Infrastructure is now working with the South African Police Service to complete the project.

The partnership includes allocating a budget for implementation and appointing a completion contractor to complete the works.

“Securing the budget is anticipated to be completed by July 2026, which will be followed by the appointment of a contractor to complete the remaining works,” he said.

He added that the procurement of fit-and-proper contractors remains one of the biggest obstacles to delivering projects on time and on budget.

“It is clear that the current model at times offers little value for money. These examples are littered across the country,” he said.

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Park Road Police Station in Bloemfontein photos

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