Cape Town under fire for tender award

Posted On Wednesday, 25 February 2004 02:00 Published by
Rate this item
(0 votes)
A black empowerment consortium headed by businessman Tokyo Sexwale has been awarded a controversial tender

Cape Correspondent

CAPE TOWN A black empowerment consortium headed by businessman Tokyo Sexwale has been awarded a controversial tender by the city's mayoral committee to develop 14,5 hectares of prime beachfront land at Bloubergstrand.

This is despite Sexwale's consortium, Jonga Entabeni, submitting the lowest bid of R115m for the Big Bay project.

The committee, led by mayor Nomaindia Mfeketo, also overruled a recommendation by council officials that another tender be awarded to Jonga Entabeni to develop commercial property and build about 480 houses and a hotel in the area.

The issue of the Big Bay project has raised questions about the tender process, as well as the transparency surrounding the city's tender system.

The Democratic Alliance (DA) said that "depending on how the council responds to the matter" it would consider referring the issue to the Public Protector.

The party also said the tender process was irregular and that the property developers could make about R1bn in profit.

The two unsuccessful bids were Italian company Immobilfin Immobiliare Finanzaria, with a tender for R151m, and Earthquake a group with Irish connections which that submitted a tender for R147m.

Responding to media queries about the validity of the tender process through Mike Marsden, the city official responsible for trading services, the committee said the tender was awarded to the consortium which was "most closely aligned with the council's vision and strategic objectives".

Among other things, the committee said "representivity on the management team and consortium's board " had played a role, as well as the fact that there were "significant social benefits that would accrue to disadvantaged communities from the award of the tender".

Jonga Entabeni represents black companies and institutions like Umkonto weSizwei Military Veteran's Association, SA Disability Investment Holdings, and the Belhar and Uitsig community business forums.

The Bottom Line: Page 14

Feb 25 2004 07:30:46:000AM Chris van Gass Business Day 1st Edition


Publisher: Business Day
Source: Business Day

Most Popular

Repo rate unchanged at 3.5%

Mar 25, 2021
Lesetja_Kganyago_SARB_Governor
The Monetary Policy Committee has decided against altering the repo rate, deciding to…

SA property visionary John Rabie announces new global property joint venture

Mar 15, 2021
LX_LIVING_Lisbon_Portugal
Capital, the Geneva based property investment, development and asset management-business,…

Court finds against EAAB in battle for FFCs

Mar 16, 2021
Tony C
In a scathing judgement handed down from the High Court on 15 March, the failure of the…

Social housing project launched in the Western Cape

Mar 12, 2021
Anchorage_Bellville_Housing
The National and Western Cape Department of Human Settlements, together with its agency,…

KZN residential property market poised for upswing

Mar 15, 2021
Sershin_Moodley_TUHF
Over the past three years, the KwaZulu Natal (KZN) property market has enjoyed…

Please publish modules in offcanvas position.