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## 51. Non-Moving Advances 

The non-moving advances which were outstanding on 31 March 2018 under this Ministry are shown below:- 

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## 52. Development Expenditure – Construction of Staff Houses at Okavango and Etsha Junior Secondary Schools 

The Ministry, through the Department of Technical Services, had engaged a contractor for the construction of 32 two bedroomed double storey staff houses at Okavango Junior Secondary School in Gumare and Etsha Junior Secondary School at Etsha 6 at a contract price of P42 864 176, with a completion period of 365 calendar days, commencing on 3 May 2016 and ending on 2 May 2017. 

Although he had been assisted with mobilization advance of P4 168 738, the contractor’s performance on the project had failed to meet expectations. The project progress was slow with the result that even as late as February 2018 the project was at 48% completion stage. The contractor had failed to renew the performance security bond, when it expired in November 2017. He also had financial problems which rendered him unable to pay the workers and suppliers. 

In view of the contractor’s failure to perform on the project, the Ministry recommended that he should be terminated, at which point a total of P19 444 870, representing 45% of the contract sum, had already been paid and the balance of P2 084 645 of the mobilization advance had still not been recovered. 

The decision to terminate was taken 10 months after the lapse of the contractual completion date, which I consider to have been generous and lenient. In my view the contractor should have been considered for termination as soon as it became evident that his performance was 

