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