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Contractor continues to rake in tenders despite ‘dangerous and substandard’ work

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Rescuers search for construction workers unaccounted for after the partial collapse of the Tongaat Mall in 2013. Two workers were killed.: Picture: Rajesh Jantilal
Rescuers search for construction workers unaccounted for after the partial collapse of the Tongaat Mall in 2013. Two workers were killed.: Picture: Rajesh Jantilal

His work was slammed as shocking and unacceptable, dangerous and substandard after a collapse killed two workers and injured 29

Infamous Durban contractor Jay Singh continues to score millions in tenders to build low-cost houses in the eThekwini Metropolitan Municipality, despite having his construction work being labelled as “shocking and unacceptable, dangerous, substandard”.

Gralio Precast, a company whose sole director is Singh’s wife Shireen Annamalay, built the Tongaat Mall which partially collapsed in 2013.

Two workers were killed and 29 others injured.

An investigation into the collapse was concluded in 2015 and the report, together with voluminous evidence, were handed over to the National Prosecuting Authority (NPA) but nothing has happened.

Since then, Gralio has scored R79 million in contracts for Cornubia, a social housing project near Umhlanga. It has received several top ups and has scored other contracts since.

In June this year, eThekwini granted the company R3.1 million as a top up on the R20.8 million it was awarded in 2016 for phase one of the KwaNgcolosi housing project.

This project involved the construction of 750 low-cost houses in the western region, including rural areas around Hillcrest.

The contract was approved under section 24 of the municipality’s Supply Chain Management Policy, which allows the city to negotiate directly with “preferred” bidders.

In May last year, the city awarded the company a R17.2 million tender to build 400 homes in phase three of the Emalangeni housing project near Hammarsdale.

But the city denied that it showed Gralio preferential treatment despite two damning reports into the company’s questionable work.

The National Home Builders’ Registration Council (NHBRC) report was included in a forensic report – called the Manase Report – by the province’s department of corporate governance and traditional affairs that probed several dodgy property and business deals involving the eThekwini Metro.

In the report, the NHBRC labelled Gralio Precast’s work “shocking and unacceptable, dangerous, substandard”.

Jay Singh

The report spoke of massive cost overruns by Gralio.

At the Hammonds Farm housing project for instance, costs rose from R68.5 million to R351 million.

The report said the increase in costs was irregular.

“The municipality should re-evaluate and reconsider the awards made to Gralio Precast for the Cornubia housing development project, in view of the NHBRC report on the poor quality of its workmanship on the Burbreeze and Hammonds Farm housing project,” the report said.

eThekwini spokesperson Msawakhe Mayisela said the metro’s “hands are tied” on matters raised in the Manase Report.

“The recommendations made to the city [in the Manase Report] did not state that the City should blacklist Gralio Precast (Pty) Ltd but that the municipality should re-evaluate and reconsider the awards made to Gralio Precast for the Cornubia housing development project. This was done.”

The Manase Report was also handed to the Hawks.

Hawks spokesperson Hangweni Mulaudzi said: “The investigations are yet to be completed but great strides have been made in this regard. It is public knowledge that the Directorate of Priority Crime Investigation [Hawks] is investigating the Manase Report.

“It is against policy to reveal our investigative processes. There is no time frame, we will present the case to the NPA for a decision once it is complete.”

The Tongaat Mall structural collapse commission was instituted by the department of labour in terms of the Occupational Health and Safety Act, to gather evidence on negligence that may have resulted in occupational injuries and the death of workers.

Rectangle Investments cc, whose sole director was Singh’s son Ravi Jagadasan, was building the mall.

The actual construction work was done by Gralio Precast, whose sole director is Singh’s wife Annamalay.

At the inquiry though, at which Singh testified, it became clear that he was the de facto owner who called the shots, with his family fronting.

This was ostensibly done as Singh has a criminal record from 1996, when he pleaded guilty to trying to bribe an eThekwini official to overlook poor workmanship.

Among the issues raised by various officials and independent specialists at the inquiry was that the mall was built without approved plans and that the eThekwini municipality had twice issued notices to stop construction.

Those notices were ignored and a regulatory fine had to be paid as a consequence.

In June this year, eThekwini granted the company R3.1 million as a top up on the R20.8 million it was awarded in 2016 for phase one of the KwaNgcolosi housing project.

It was also revealed that the concrete used in the support pillars was not strength tested and that the pillars were too “slender” and “inadequate for purpose”.

Mayisela said the municipality had not tried to pursue any civil claim against Singh’s companies involved in the Tongaat Mall disaster.

The commission report was handed to the NPA in the province.

Acting director of public prosecutions Advocate Elaine Zungu said: “Given the technical and voluminous nature of the evidence contained in this matter, the process of evaluating all the evidence and also conducting research involves a lot of time. The prosecution report is currently being worked on.”

Tongaat Mall was bought by PropRoyale Developers, Investec Properties and AJ Property Developments for R32 million.

Singh did not respond to several messages for comment.

Annamalay’s personal assistant said the family “will not be interested” in answering questions.

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