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Mangosuthu University of Technology Annual Report

17

practice. However, the APP document was approved by

Council and was aligned with the requirements of the

DHET. After the review of the Strategic Plan and the Annual

Performance Plan, MUT is currently operating under the

new report regulations. Council needs to determine the

KPIs that the Council believes need to be achieved by

Management. There is a need to go back to the Strategy

as it determines the APP.

SECURITY TENDER

Council Considered the Security Tender from the time it

was advertised, the constitution of the Appeals Tribunal

and the process thereof. The rules of the Tender Appeals

Tribunal were also considered by Council. Out of five

service providers, two of them had submitted their notice

of motion to the MUT attorney for the Appeals Tribunal.

Two security firms were providing security services for the

University on a month to month basis until the objections

were resolved.

The question of the Security Tender was deliberated on at

EXCO and EXCO had resolved to revoke the award of the

security tender which was the subject of the appeal. This

automatically nullified the need for the appeal to proceed.

The security tender would be advertised as soon as

possible. After deliberations Council ratified cancellation

of the security tender that was awarded to a security

company during 2013 as well as the Tender Appeals rules.

INFRASTRUCTURAL DEVELOPMENT AND

MANAGEMENT

a)

Report on the Lack of Sewerage Capacity between

MUT and eThekwini Municipality

Council considered the report on the lack of sewerage

capacity between MUT and the eThekwini Municipality.

Project drawings submitted in 2013 and 2014 had not

been approved by eThekwini Municipality due to lack of

sewerage capacity. These were: Engineering Laboratories

and Offices; Student Centre; and the Student Housing

Phase 2. Council considered the proposal that the

University provides “bridging finance” for the construction

of the upgrading of the truck sewerage line for 3.5 km

from Seme Hall to Isipingo Waste-Water Treatment.

A series of meetings were held between MUT and the

Municipality in order to resolve this challenge. After

deliberations, both parties agreed that the University

funds the upgrading of the sewerage system on behalf of

eThekwini Municipality and the Municipality would in turn

pay back the money that the University will have used for

the upgrade, with interest or alternatively an off-set on the

services rates for a limited number of years. The University

in turn negotiated with the National Department of

Human Settlements to sponsor the sewerage upgrade

for eThekwini Municipality. Eventually on 20 November

2015 the Human Settlements department agreed to find

resources within their grant system to support MUT with

R45 million required to upgrade the sewer system.

b)

Report on the Engineering Offices & Laboratories

and Student Centre

Council considered the progress report on the construction

of the Engineering Laboratories and the Student Centre

in relation to the appeal lodged. Council expressed a

concern about the delay caused because the Appeals

Tribunal and the fact that the affected parties could not

agree on the proposed rules of the Appeal Tribunal.

The meeting resolved that a legal opinion be sought to

find out if MUT could have recourse for the escalated

cost. Council then agreed that the University must have

controls in place for such matters in order to avoid

consequential delays and escalated costs. At the end of

2015 plans for the construction of the Student Centre and

the Engineering Laboratories and Offices were eventually

approved by eThekwini Municipality.

c)

Construction of a 640-bed Student Residence -

Phase 1

This project was approved in 2010 with a total cost estimate

of R1 06 049 of which R56 million was to be provided by

the University and the rest by the DHET. The tender was

awarded to a Construction Company which commenced

construction on 17 February 2014 with a completion

date of December 2015. Occupation was planned for

1st January 2016. Due to delays, the cost of construction

escalated from R105 million to R156 million. During 2015,

work stoppages delayed the construction.

d)

The Construction Company’s Request for Recovery

of Cost of Labour

The Council considered the claim by the Construction

Company for the costs incurred due to substantial work

stoppages. Focus Project Management assessed the claim

received from the Construction Company and concluded

that the contractual standing of the Construction Company

in relation to their current claim was weak and offered

limited contractual backing, hence the claim was rejected.

Focus Project Management recommended an extension

of time to be granted for the full duration claimed until

17 December 2015. The time-related costs amounted to

at least R4 million. Council considered the conclusion

reached by Focus Project Management and supported it.

COMMUNICATION WITH THE DHET & OTHER

EXTERNAL STAKEHOLDERS

Council noted the following interactions with the DHET

and other government institutions: