"We were paid R1,5-million to do an analysis of the whole of Bhisho and its accommodation possibilities for government, and to prepare a database of what was being used and what wasn't," said HQZQ Consulting MD Denis Peens. "The idea was to re-optimise use of the facilities available and save money."
The auditor-general's report for the financial year ended March 2004 said the feasibility study for the Amatola Sun's suitability to the government was carried out by consultants after the building was bought in March 2003 and cost R1,5-million. The AG said this cost and the loss which the province incurred on the building "amounts to R2,19-million and is considered to be fruitless and wasteful expenditure".
Peens said the much smaller report on the feasibility of using the Amatola Sun to house the Treasury had been completed in February 2003, and it advised the government that the building was not suitable for offices, because each office would have an en-suite bathroom.
"We couldn't knock down the adjoining wall to enlarge the offices because they are load-bearing walls."
Peens said the report concluded that purchase of the land was a "very good buy".
"The Bhisho government needs 50,000 square metres more office space than they've got, and the hotel complex came with about 37,000 hectares."
The Public Works Department, at the Treasury's request, then bought the complex from East London millionaire Tony Cotterell for R5,5-million.
"We recommended that they outsource the hotel operation as a conference centre because they don't have one, and use the extra land for an office park," said Peens.
"Then for whatever reason Public Works decided to put it back on the market," Finance MEC Billy Nel said last week.
The complex stood empty and was vandalised. In April 2004, the department called for tenders to buy it.
In June last year, East London consortium Coppermoon Trading 13 was informed that its R5,05m bid had been successful.
The department then tried to withdraw its offer to sell. Coppermoon has filed a R40m damages claim against the department.
"Public Works made a grave mistake when they decided to sell. In retrospect it was an excellent buy," said Nel.
"It seems they wanted to create their own empire, and carry on regardless without consulting cabinet."
Nel said he doubted that then Public Works director-general Dumisani Mafu had the authority to sell the property.
The Eastern Cape government's initial purchase of the complex from Cotterell is currently under the scrutiny of the Pillay Commission.
"The commission has received a complaint concerning the initial purchase," said commission secretary Joe Nxusani.
Daily Dispatch
Publisher: I-Net Bridge
Source: I-Net Bridge
