By Doreen Mokgolo
- The city budgeted R39-million more to fix the Saame Building, where work stalled after seven contractors failed to complete it over eight years.
- A forensic report found R272-million was wasted on overpricing, dodgy payments, and duplicated services, and the city is now going to the police.
The City of Ekurhuleni is throwing another R39-million at the Saame Building, a renovation job that has been going on for eight years without being finished.
This pushes the total spent on the project to R311-million. The building stands in Germiston’s central business district on the corner of Spilsbury and Queen Street.
Renovations began in 2018 under former mayor Mzwandile Masina as part of a plan to upgrade the city centre. The work was supposed to take just over a year, but since then, seven different contractors have tried and failed to finish the job.
Many left because they were not paid or because they underestimated how much work was needed. The last contractor walked off in March 2024, leaving the building open to vandals and thieves.
Mayor Nkosindiphile Xhakaza said what should have been a major upgrade for the city has turned into a disaster.
“The forensic report revealed a shocking financial impact of R272-million in irregular, fruitless expenditure and inventory losses,” he said.
The problems included false claims about work done, approval of extra payments beyond the legal limit, overpricing, paying for poor work, and double-charging for project management.
The city is now handing the case over to the police and the Special Investigating Unit. Officials who were involved will face disciplinary hearings, and the city wants its money back.
Mayoral committee member Nomadlozi Nkosi said five contractors have now been hired to work at the same time to try to speed up the job.
She said they even had to redo some work because of damage and theft.
The city has also dropped plans to give the building a fancy new look with cladding, because there is no more money for that.
Pictured above: Mayor Nkosindiphile Xhakaza.
Image source: Doreen Mokgolo
