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Mangosuthu University of Technology Annual Report
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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: