Chris van Gass

Cape Correspondent

Development of the controversial Somerset Hospital site, regarded as one of Cape Town's most sought-after pieces of real estate in provincial government hands, has been put on hold by Premier Lynne Brown in a move seen as a slap in the face of her predecessor Ebrahim Rasool.

Brown announced yesterday that existing bidders already part of a so-called “requisition for qualification” process to develop the site would be given 21 days to say why the current process, which started in April when Rasool was still in power, should not be “aborted and started afresh”.

Garth Strachan, MEC for finance, economic development and tourism said the intention was to terminate the process and there were sensitive legal issues and processes which sought to ensure that everyone had a “fair hearing”.

Although Brown and Strachan were tight-lipped about who the bidders were, they also treaded carefully around the “sensitive legal issues" and said the province was bound by “privilege on the matter" to reveal who responded to the initial expression of interest.

However, it is an open secret that two distinct factions are pitted against each in the fight to obtain development rights.

They include businessman Tokyo Sexwale’s Mvelaphanda on one side, and on the other Hassan Adams, a friend of Rasool and chairman of Grand Parade Investments and SunWest, which owns the GrandWest Casino and the Table Bay Hotel in Western Cape.

Adams is also part of a consortium including Dubai World, Dubai's investment arm, which bought the Victoria & Alfred Waterfront from Transnet in 2006 for R7bn.

Rasool announced in February last year that the Somerset Hospital precinct and developers would get a 99-year lease and 33% of the deal would be set aside for empowerment groups. It is known that criticism and unhappiness has surrounded the project ever since Rasool made a controversial visit to Dubai in November 2006.

Rasool described the development plan for the 8ha Somerset Hospital precinct when it was announced as “revolutionary” and said at the time that while he did not want to put a price tag on the lease of the land, it could “easily fetch R1bn”.

Brown said yesterday that while “controversial and subject to criticism from diverse quarters” it was incumbent on her government to “maximise participation, consultation and transparency” in disposing of the “valuable public” asset.

She said she had put together a task team from her department, the treasury and transport and public works “to do a full chronological assessment of everything done so far”.

The province would re-conceive the development, “probably in the form of a public-private partnership”, Brown said.

Source: Business Day