Zhengati Group, the Chinese construction firm reportedly favoured by the Directorate of Intelligence and Security (DIS) for a lucrative water and sanitation infrastructure project in Maun is at the centre of fresh controversy.
Initially awarded a contract exceeding P1.5 billion for the “Design, Supply and Build of Water Distribution Network, Sanitation Reticulation, Telemetry, SCADA and Other Associated Works” in Maun, the project’s cost has since surged to approximately P2.9 billion.
However, the contractor has now largely shifted focus to a separate land servicing tender in Gantsi, leaving only a skeletal crew behind in Maun. According to sources close to the project, the Maun works have stalled, with completion now pushed to March next year.
The company’s abrupt pivot to Gantsi where it is working alongside Tau Grading has raised concerns about project prioritisation, value for money, and government oversight.
Shockingly, government records show that the value of the tender has since surged to around P2.99 billion for the Maun project, despite its original tender being awarded at P1.87 billion (P1,873,965,187.72), raising red flags over potential cost overruns and project mismanagement.
“There’s no activity on site anymore,” a source said. “The main teams have packed up and moved to Gantsi where they’ve been awarded another tender. What’s happening in Maun is essentially abandonment.”
Zhengtai Group – which had scored lower in financial and technical evaluations and had valued its bid at over P1.8 billion (a difference of 300 million from the initial P1.5 billion) was awarded the tender following an advice by the DIS. At the time the DIS advised that the tender which was initially to China Jiangsu, be revoked. Six contractors had submitted bids for the tender. The contractors were Zhengtai, China Jiaingsu, Colic, Kartz & Giant Build Joint Venture, Maun Joint Venture Unik/China Civil Engineering & Construction Company JV as well as China State Construction & Engineering Construction Company/Zhong Gan & Estate Construction JV.
Responding to Sunday Standard enquiries, Zhengtai spokesperson, Kopo Mononi said the Ghanzi project, “which commenced in September 2024 as a joint venture with Tau Grading, is progressing well.”
“With a project sum of P1.03 billion, we have received total of P194 million in payments up to now for both jv companies. In addition, there are 66 million payments certified but not been paid yet. It is not true. Zhengtai is currently working properly/normally on the Maun project,” said Mononi.
He said: “The challenge is that prolonged delayed payments for Maun project is now adversely impacting the completion of the project. Should those outstanding payments be made now, the project could even be completed this year.”
“There are penalty clauses in the contract. However, the reasons for delays are not caused by the contractor. The COVID-19 lockdowns halted the project at the onset, impacting the 6-month design Phase,” said Mononi. He added that “the rapid growth of Maun village resulted in increased quantities, approximately 1/3 more than the concept design; Delays were also caused by the Department of Environmental Affairs (DEA) stopping work along the Thamalakane River for 18 months, demanding a review of the Environmental Impact Assessment (EIA).”
He said: “Land expropriation challenges further hindered progress, with 130 lift stations and 18 vacuum stations requiring land acquisition, often met with resistance from property owners. Despite these challenges, the water component was completed on time and already handed over to WUC, which is now benefiting the Maun people everyday and the sewerage component has commenced connections in Matshwane, Gxhabara, and Boseja wards.” Mononi also stated that “An extension of time has been granted until December 2025.
However, we are currently facing cash flow difficulties due to delayed payments from the client since September 2024.” After its failure to produce evidence that China Jiangsu was a threat to national security, the State later reached an out of court settlement with China Jiangsu and paid the contractor, P112 million.
