The Development Bank of Southern Africa (DBSA) says there has been no ballooning of costs on the R4.6 billion reconstruction of Parliament, pushing back against criticism of the project’s price tag as questions remain over how responsibility for the rebuild was transferred and how some contracts were awarded.
DBSA Group Executive for Infrastructure Chuene Ramphele told MPs that the R4.6 billion figure should not be compared directly with the R2 billion initially made available by National Treasury.
He said the initial allocation was made before detailed designs had been completed and the full costs of the project were known.
“There are no cost overruns,” Ramphele said, adding that reports had been submitted to the Minister of Finance showing there had been no overspending.
The current budget includes about R2.2 billion for the National Assembly building and R1.8 billion for restoration of the Old Assembly, with the remainder covering demolition, offices for MPs and information technology requirements.
The two main parliamentary buildings were gutted in an arson attack in January 2022.
The reconstruction began in late 2022. Parliament has said a trilateral agreement between Parliament, Public Works and National Treasury was reached for Parliament to take responsibility for the rebuilding project, after which it appointed the DBSA as implementing agent.
The DBSA said in August that reconstruction was 76% complete and remained on track for completion in June 2027.
Questions over the transfer
The DBSA’s response comes as scrutiny of the project has widened beyond its cost to the legal basis for Parliament taking responsibility for the rebuild.
Public Works and Infrastructure Minister Dean Macpherson said earlier this month that his department had found no formal transfer of the project, written delegation of powers or documentation transferring custodial responsibility from the department to Parliament.
He said he had instructed the director-general to investigate the department’s records and that he would examine how the situation arose and whether officials should be held accountable.
The Democratic Alliance subsequently called for an urgent parliamentary investigation, with MP Rikus Badenhorst asking Parliament to explain the legal authority under which it assumed responsibility for the project and appointed the DBSA.
Parliament has previously said a trilateral agreement between Parliament, Public Works and National Treasury was reached for Parliament to take responsibility for the rebuilding project.
National Assembly Speaker Thoko Didiza has pushed back against suggestions that the arrangement was necessarily unlawful, saying the former ministers involved should explain how the arrangement came about.
Didiza suggested that former Public Works ministers Patricia de Lille and Sihle Zikalala appear before the Joint Standing Committee on the Financial Management of Parliament. She also proposed that the committee examine the functioning of the steering committee overseeing the rebuild.
Parliament Secretary Xolile George said Parliament had adequate records showing engagements between Parliament and Public Works. He said the DBSA, Public Works and National Treasury had been working through a steering committee on the project since late 2022.
The dispute is therefore over the documentary and legal basis for the arrangement, rather than whether Parliament and Public Works engaged over the project.
Procurement concerns
The project’s procurement and financial management have also faced scrutiny.
Netwerk24 reported that preliminary audit material had raised questions about approximately R67 million in construction work, including whether the necessary authorisation and tender process had been followed.
Netwerk24 also questioned the R73 million appointment of Maziya General Services as demolition contractor and whether procurement requirements were met.
CIDB compliance head Marcia Mashele said the relevant award was registered on the Construction Industry Development Board’s project register, but that its verification indicated the tender had not been advertised on the iTender portal. She said this meant the CIDB could not confirm whether the procurement was conducted through a competitive, limited or closed process.
The Auditor-General has cautioned that preliminary audit observations do not necessarily become findings in a final audit report.
Secretary to Parliament Xolile George said the project is being audited by the Auditor-General and that, to date, no concerns had been raised about the expenditure.
What happens next?
The reconstruction is continuing under the DBSA, which maintains that the R4.6 billion budget does not represent a cost overrun.
At the same time, the unresolved question of how responsibility for the project moved from Public Works to Parliament is likely to remain under scrutiny.
Macpherson has ordered an investigation into the department’s records, while Didiza has proposed that the former ministers involved explain the decisions that led to Parliament taking control of the rebuild.
Those processes are expected to clarify how responsibility for the project was transferred and whether the necessary legal and procedural requirements were followed.
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