Mining magnate Tokyo Sexwale and former Scorpions boss Bulelani Ngcuka
- both ANC members - stand to make millions after the Group 5 consortium
emerged as the primary builder of the R1,8-billion King Senzangakhona
Stadium in Durban.
It is understood that the announcement of the successful bidder for the
construction of the 2010 World Cup stadium could be made as early as Tuesday.
The announcement was due to have been made on Friday, but was delayed
after frantic negotiations between eThekwini's management, provincial
authorities and the Treasury in Pretoria.
Durban's managers are racing against time to announce the bidder, and
have allowed the builders to move equipment during the builders' holiday
to have it operating by January 10.
Key to Friday's hold-up, when a 9am news conference at the International
Convention Centre was postponed to 2pm, and then cancelled, was a clause
in the Municipal Finance Management Act which holds an accounting officer
- in this case Metro Manager Michael Sutcliffe - criminally liable if
it is infringed. Infringements could include cost overruns, and it is
believed that escalating construction costs in recent months have pushed
tenders beyond the envisaged R1,6-billion. One of the reasons for this
is a 35 percent rise in the cost of steel.
Sources said the Treasury could condone an overrun in writing, but it
had so far refused to do so.
Sutcliffe delayed the announcement on Friday to allow the Treasury, which
is allocating funds for the stadium, to consider the difference between
the best bidder and the amount it had allocated.
"Once that discussion involving national and local government is
concluded, an announcement will be made," said Sutcliffe.
Sources said municipal officials, led by the head of the strategic projects
unit, Julie-May Ellingson, had worked past midnight on Thursday to try
to reach an agreement with the Treasury.
It is understood that Local Organising Committee Chief Executive Officer
Danny Jordaan was SMSed in the early hours of Friday to warn him about
the delay. He and Fifa members had been scheduled to attend the announcement.
Ngcuka's company, Amabubesi Investments, has a 51 percent controlling
stake in construction company Basil Read, which owns 30 percent of the
Ilima Group - a company which jointly holds 21.6 percent of the Group
5 consortium with Sexwale's Mvelaphanda Group Ltd.
In 2005 the Ilima Group and Mvelaphanda Group were officially welcomed
by international giant Group 5 as new BEE ownership entrant-partners.
If the eThekwini Municipality announces the Group 5 consortium as the
successful bidder, the company would be in a joint venture with WBHO Construction
- a leading force in Southern Africa.
The Group 5 consortium is involved in a number of large construction projects,
including the R260-million Pearls of Umhlanga and the extension of the
Midlands Mall in Pietermaritzburg.
It has also emerged as part of the consortium which is the remaining bidder
for the construction of the new King Shaka Airport at La Mercy.
Xolani MBANJWA. ,
December 17, 2006.
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