Controversial Kanye Sanitation Project faces fresh crisis

The long troubled Kanye Major Village Sanitation Schemes project has entered another period of uncertainty after engineering consultants suspended onsite services over unresolved payment disputes with the government. The project, one of the most controversial infrastructure works, now faces further delays and escalating costs.

In a letter seen by this publication (dated 11 May, 2026), Estate Construction (Pty) Ltd, the contractor responsible for the project, informed the Permanent Secretary in the Ministry of Water and Human Settlements that the engineer had withdrawn all site-based services with immediate effect because of unpaid fees.

The contractor said the engineer’s notice warned that supervision would remain suspended ‘until such a time as the outstanding payment issues are resolved.’

The suspension effectively halts key project functions, including inspections, testing oversight, certification of works and issuance of contractual instructions. Estate Construction said the withdrawal of those services made it impossible to continue the works lawfully and safely.

The development marks the latest setback for a sanitation project that has become synonymous with delays, cost overruns, compensation disputes and allegations of poor planning since construction began nearly a decade ago.

Initially awarded to Estate Construction for about P707 million to P725 million, depending on government reporting periods, the project’s total cost has since surged to between P3.3 billion and P3.6 billion, according to figures presented before Parliament and the Public Accounts Committee.

The project was originally expected to be completed between 2019 and 2020 after a 48 month construction schedule. It has since missed several deadlines and remains incomplete in 2026.

Government officials have attributed the spiralling costs to multiple factors, including geological miscalculations, land compensation disputes, inflation, VAT increases and disruptions caused by the Covid-19 pandemic.

One of the most contentious issues surrounding the project has been the discovery that initial geotechnical studies significantly underestimated the amount of rock beneath Kanye village. Officials told lawmakers that consultants initially estimated rock density at about 8%, while excavation later revealed hard rock levels approaching 80% to 90% in some sections. The error resulted in extensive blasting operations, redesign work and the costly transportation of backfill material from outside the village.

The Ministry of Water and Human Settlements has acknowledged the error publicly. Minister Onneetse Ramogapi told Parliament last year that the project’s escalation from roughly P700 million to more than P3 billion was linked largely to the rocky terrain and difficulties accessing work sites in unplanned residential areas. The project has also generated widespread frustration among residents whose homes and properties were affected by trenching and pipeline construction.

Government records show more than 1,000 properties were impacted, while compensation costs rose from an initial estimate of P5 million to at least P24 million and later exceeded P37 million, according to various official updates.

Residents in several wards complained of damaged yards, open trenches, disrupted access roads and unfinished sewer connections. More than 1,400 complaints linked to the project were recorded over the years, with hundreds still unresolved by 2025.

The project also attracted the attention of anti-corruption agencies after questions emerged over the scale of the overruns and procurement decisions. Officials told the Public Accounts Committee that the Directorate on Corruption and Economic Crime was investigating aspects of the project, including allegations of professional negligence connected to the flawed rock assessments.

Government officials have repeatedly denied corruption allegations, maintaining that the overruns were driven primarily by technical and logistical complications rather than fraud.

Even as the project neared completion, technical problems continued emerging. Earlier this year, Water Utilities Corporation officials told councillors in Kanye that some pump station motors had broken down during testing while certain valves installed in the system were found to be substandard and required replacement.

The latest payment dispute now threatens to deepen those difficulties. Estate Construction said unpaid Interim Payment Certificates numbered 118 to 123 have remained outstanding since November 2025. The company warned that without engineering supervision there could be no approvals, testing, commissioning or certification of completed works for payment.

The contractor said the absence of the engineer had also created a vacuum in project administration, including the inability to obtain instructions or determinations required under the contract.

Estate Construction Managing Director Kegone Sebina requested an urgent tripartite meeting involving the government, the engineer and the contractor within 48 hours to stabilise the project, establish interim arrangements for inspections and supervision, and determine how outstanding payments would be settled. Sebina also requested discussions on measures to protect the project programme and address contractual entitlements under FIDIC provisions governing suspension of works and delays. Estate Construction said it remained committed to completing the project.

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