Community unrest and the liquidation of a contractor have been blamed for further delays to the decade-long construction of the (new) Mapulaneng Regional Hospital in Mpumalanga, which was supposed to be completed in July this year, reports BusinessTech.
The project, with a hefty construction cost of R2.835bn, was intended to replace the existing and dilapidated 90-year-old Mapulaneng Hospital, originally established by Swiss missionaries in 1936.
Construction of the new hospital in Bushbuckridge began in phases in 2016, with a full contractual completion date of July 2026. It had an initial budget of R2.5bn.
The project was reported at 78% physical progress as of December 2025, with the budget increasing to more than R2.8bn.
Now, the still empty hospital faces over-runs and higher costs due to the indefinite delay.
Phase 1 – bulk water, sewer, and electricity reticulation, as well as construction of an access road – which began in September 2016, was completed in September 2019.
Phase 2 of the project, covering retaining walls and bulk earthworks, started in 2017 and was completed in July 2018. Phase 3 was the main build of the hospital itself and surrounding facilities. Construction started in July 2021 and was expected to be completed by July 2026.
However, in response to a parliamentary Q&A on the hospital, Health Minister Aaron Motsoaledi said delays were “attributable to the liquidation process of the contractor on Phase 3A, and prolonged community-related disruptions”.
Phase 3A of the project included hospital wards, theatres, and the CSSD, OPD, Radiology, the main entrance, and the support building, among many other critical features.
Phase 3C included the residences, gymnasium, library, swimming pool, sports facilities, and infrastructure like sewer and stormwater services, paved roads and parking, etc.
The Minister said that Phase 3B only achieved practical completion in January 2026, missing its July 2025 deadline.
This phase involved the construction of the Emergency Medical Services Building, Isolation Ward, Surgical Ward, Orthopaedic Ward and Building Services.
There is no updated completion date.
Motsoaledi said one would be communicated once the Extension of Time claims had been finalised. The delay would have financial implications, he added, including variation orders totalling R187m, as well as further potential costs related to outstanding works, extension claims, security, and the appointment of a new contractor.
The Minister said that no consequence management measures have been instituted against the project team; however, the contractor for phase 3A was terminated due to liquidation.
Rinse and repeat …
In a similar scandal, R28m has been wasted on a duplicated North West hospital project, reports TimesLIVE, while in the meantime, the existing facility is still crumbling away and some people actually die while waiting for beds elsewhere, according to the staff.
Adding to the mess, an architect whose name was used by the construction firm which was allegedly improperly awarded the tender, has now accused it of fraud.
The latest chapter comes four years after a local company was awarded the R28m health department contract to build the new 120-bed facility at General De La Rey Hospital, and as the existing deteriorating hospital remains untouched.
A source within the department told the Sunday Times that MIB Infrastructure received an overpayment of R21m and now faces allegations that it secured the tender with fraudulent documents.
The payment covered fees for design development, documentation, procurement, construction supervision and project close-out – but the firm only delivered initial concept designs and inception services valued at R6.9m.
“Nobody knows why the department paid the R21m, which included supervision of construction, despite no construction having taken place,” said the insider.
The company, through its director Malesenyo Ramaoka, maintains that the funds were legitimately earned for professional services rendered, and claims that a substantial revision to the project’s scope meant that the team “re-evaluated and modified their initial planning and design proposals”.
“The amount referred to relates to professional services rendered by MIB Infrastructure in connection with the planning and design for the upgrading of General De La Rey Hospital. It should therefore not be interpreted as payment for construction works undertaken by MIB Infrastructure,” said Ramaoka.
In the meantime, the hospital is unable to admit patients and has to check if neighbouring hospitals like Lehurutshe have spare capacity for its patients. In some cases patients die while waiting for beds somewhere else, said Gaborone Seleke, hospital CEO.
Earlier this year the North West High Court (Mahikeng) declared the appointment of MIB Infrastructure unlawful, set aside the tender, and ordered that Bagale Consulting be appointed.
An on-site visit by the Sunday Times last week found no signs of construction activity since MIB’s 2022 appointment, notwithstanding the millions of rands already paid to the firm.
In a startling development, architect Tafadzwa Mtisi sent an email to the Health Department alleging that MIB Infrastructure fraudulently used his professional credentials without his knowledge or consent to secure the tender.
“I further note that the certificate relied upon in the submission had expired at the time, and that this formed part of the basis upon which the tender appointment was set aside,” Mtisi said. “I have since submitted a formal complaint to the South African Council for the Architectural Profession, and I am taking steps to formally clarify my non-involvement and protect my professional standing.”
Ramaoka said MIB had only intended to use Mtisi’s credentials as an additional member of the professional team, and that after the award, “MIB Infrastructure was unable to conclude an agreement him for his participation in the project”.
“He was subsequently replaced by another … professional with comparable experience. In relation to the …allegation that Mtisi’s professional certificate was used …MIB would caution against reaching such a conclusion without establishing the relevant facts.”
Tebogo Lekgethwane, spokesperson for the North West health department, said officials are aware of Mtisi’s claims and have asked him to submit a Promotion of Access to Information Act request so they can verify the facts.
However, the department failed to explain the R28m payment to MIB.
“The fact that a court has found the appointment unlawful does not, in itself, provide a basis for the department to make an unsubstantiated assertion regarding recovery. The question of any financial recovery and the appropriate legal mechanisms to pursue such recovery will be considered on the basis of the relevant contractual, factual and legal position.”
The health department was taken to court over MIB’s appointment by Bagale Consulting, which won the case.
Bagale was appointed in 2008 as project manager for the construction of Lichtenburg Hospital, intended to replace General De la Rey Hospital and serve patients from the decommissioned Thusong Hospital.
But in 2022, the department then hired MIB Infrastructure for a similar project. The primary distinction between the two contracts was the number of beds in the new facility: Bagale’s contract specified 150 beds, while MIB’s contract was for 120 beds.
TimesLIVE article – R28m paid for failed North West hospital project (Restricted access)
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