From R2 billion to R3.3 billion: The rising costs of Parliament's restoration efforts

Parliament has defended the escalation of costs for the restoration and rebuilding of the institution’s buildings that were gutted by fire in January 2022, saying the project was complex and was “not coming from the ground”.

The escalation of costs, from the initial R2 billion estimate to now more than R3 billion, was laid bare on Friday when the institution’s political leaders and officials appeared before the portfolio committee that plays oversight over the national legislature.

A presentation made at the meeting showed that the cost has ballooned to R3.3 billion, up from the R2 billion allocated by the National Treasury.

Secretary to Parliament Xolile George said the assessments done by the Department of Public Works and Infrastructure after the fire damage had estimated the costs at R2 billion, resulting in the National Treasury allocating R2 billion, for the rebuilding and restoration programme.

“There was no detailed design as to what would happen on the demolition and the rebuild component,” he said.

George also said it was only when the contractor was appointed that the R3 billion figure was arrived at with the help of quantity surveyors and architects.

“The National Treasury has been properly briefed around the cost adjustment,” he said.

Special project manager Simon Mashigo confirmed that there was no overbilling.

“There was additional work that consultants had to do. Based on additional work, remuneration was in line with provisions of the sector,” Mashigo said.

He insisted that the costs are managed.

“There is no undue increase in terms of the duration of the project,” Mashigo added.

According to the presentation shared with MPs, more than R353 million has been spent to date.

The project experienced delays in the demolition work due to more than normal rainfall in Cape Town and the absence of as-built drawings that created limitations on demolition methodology, among other things.

The demolition work, now standing at 98%, was undertaken by Maziya General Services.

The repairs and upgrade work in the New Assembly will be done by Raubex Construction, which will be on-site on Monday while another contractor is still to be appointed for the Old Assembly’s work.

However, the appointment of Maziya General Services has raised eyebrows after it was implicated in the irregular awarding of a R17 million signalling contract at the Passenger Rail Agency of South Africa.

DA MP Frederik Jacobus Badenhorst said Maziya has been in the media for all the wrong reasons following recent reports that the Hawks are probing the payment of R2.7 billion in two tranches to non-existent companies.

Badenhorst wanted to know the process followed to appoint Maziya.

In response, George said the appointment of Maziya would be dealt with by the implementing agency, the Development Bank of Southern Africa (DBSA).

“Maziya is appointed by DBSA and they will be at best and competent to respond to their process that guides how they arrive at a determination of appointment of contractors,” he said.

National Assembly Speaker Thoko Didiza agreed that DBSA would be in a better position to say why they chose a particular company and what criteria they used.

“The steering committee would be able to say what oversight mechanisms and ensure that work is in accordance with the Memorandum of Understanding signed between the implementing agent and Parliament,” Didiza said.

Meanwhile, there was confusion on the availability of the dome for use by Parliament in the coming weeks amid plans by the Department of Public Works and Infrastructure to procure and install internal fittings such as flooring, furniture, and ancillary equipment.

MPs heard that the department needed access to the dome by end of March 2025 for work to commence and estimate completion by October 2025.

“The matter has been escalated at high level between the two institutions.”

The availability of the dome caused some confusion last week when the chief whips forum heard it would not be available for the sittings this week, only for parliamentarians to be told they would use it.

Didiza said they had received a letter from the department’s director-general informing them the dome would not be available next week after receiving a similar letter for a chief director.

She also said Minister Dean Macpherson informed her that he was not aware of the development and had sent her a message saying “the dome is fully available for you next week and further”.

“We have undertaken to give the minister details of when our sittings are so that if there is anything, Public Works might need to know which days not to disturb sittings of Parliament,” Didiza said.