Parliament defends rising costs of fire-damaged building restoration

Parliament has defended the increased costs for restoring and rebuilding its buildings damaged in the January 2022 fire, arguing that the project is complex and does not involve a simple rebuild “from the ground up.”

Initially estimated at R2 billion, the budget for the reconstruction has now surged past R3.3 billion. This escalation was revealed during a parliamentary portfolio committee meeting on Friday, where political leaders and officials provided a detailed breakdown of the costs.

A presentation at the meeting indicated that the National Treasury had originally allocated R2 billion based on an assessment conducted by the Department of Public Works and Infrastructure. However, once the appointed contractor conducted a detailed evaluation alongside quantity surveyors and architects, the projected cost increased significantly.

Why the Costs Increased

Secretary to Parliament Xolile George explained that the original estimates lacked a detailed design of the demolition and rebuilding phases. The full extent of the damage and necessary work only became clear after contractors and experts were brought in.

“The National Treasury has been properly briefed around the cost adjustment,” George assured the committee.

Special project manager Simon Mashigo emphasized that there was no overbilling in the project. He explained that additional work required consultants to go beyond the initial scope, leading to increased costs.

“There is no undue increase in terms of the duration of the project,” Mashigo added, addressing concerns that delays were contributing to rising costs.

Progress and Challenges in the Restoration

According to the presentation shared with Members of Parliament (MPs), over R353 million has already been spent.

One of the primary challenges faced during the demolition phase was heavier-than-usual rainfall in Cape Town, which delayed progress. Additionally, the absence of accurate “as-built” drawings complicated the demolition process, as engineers had to proceed carefully without a clear blueprint of the building’s original structure.

Despite these setbacks, the demolition work is now 98% complete. The company responsible for the demolition, Maziya General Services, has nearly finished its task.

New Contractors and Controversies

With the demolition phase nearing completion, the next step involves repairs and upgrades. Raubex Construction has been appointed to work on the New Assembly and is set to begin operations on Monday. However, another contractor is yet to be appointed for the Old Assembly’s restoration.

The selection of Maziya General Services has sparked controversy. The company has been implicated in an irregular R17 million contract awarded by the Passenger Rail Agency of South Africa (PRASA). Additionally, media reports suggest that the Hawks are investigating the payment of R2.7 billion to non-existent companies—an issue that has raised further concerns among MPs.

DA MP Frederik Jacobus Badenhorst questioned how Maziya was chosen despite these allegations, demanding transparency on the appointment process.

In response, George clarified that Maziya was appointed by the Development Bank of Southern Africa (DBSA), which serves as the implementing agency.

“Maziya is appointed by DBSA, and they will be best placed to respond regarding their process for selecting contractors,” George stated.

National Assembly Speaker Thoko Didiza supported this position, noting that the DBSA should explain the criteria used to award the contract.

Uncertainty Over Dome’s Availability

Meanwhile, confusion arose over the availability of the parliamentary dome for upcoming sittings. The Department of Public Works and Infrastructure has plans to install internal fittings such as flooring, furniture, and ancillary equipment. MPs were informed that the department required access to the dome by the end of March 2025, with an estimated completion date of October 2025.

Last week, conflicting statements about the dome’s availability added to the uncertainty. The Chief Whips Forum was initially told it would not be available for parliamentary sittings, only for parliamentarians to later receive assurances that it would be accessible.

Didiza revealed that she had received a letter from the department’s director-general stating the dome would not be available. However, Minister Dean Macpherson later contradicted this by assuring her in a message that “the dome is fully available for you next week and further.”

To avoid further confusion, Didiza said Parliament would provide the minister with a schedule of sittings to ensure that construction work does not interfere with parliamentary sessions.

Looking Ahead

As the restoration project progresses, concerns over transparency, costs, and logistical challenges remain at the forefront. Parliament has maintained that the increased budget is justified due to the complexity of the work. However, scrutiny over contractor appointments and project management will likely continue as MPs push for greater accountability in the use of public funds.

With the dome’s availability still uncertain and construction work set to intensify, Parliament will have to navigate these challenges carefully to ensure both legislative operations and the rebuilding project proceed smoothly.