A war of words has erupted over a proposed R20-billion waterfront development for East London.

Politician turned businessman Abe Mbulawa dreams of transforming the Eastern Cape into the "California of Africa" but was so miffed by his reception from city officials that he complained to the Premier and Buffalo City's mayor.

He claims that Buffalo City municipal manager Gaster Sharpley treated him like an "imbecile" and an "upstart".

Sharpley, he said, was not interested in viewing his financial guarantees for R20bn and did not even offer him and his partners a cup of tea.

"(Sharpley) was arrogant and condescending, to say the least," Mbulawa wrote in a letter of complaint to Buffalo City Mayor Zintle Peter and Eastern Cape Premier Nosimo Balindlela.

Mbulawa, a former director at the City of Cape Town, claimed that his unsolicited proposal had not been duly considered.

"It was clear to us that he was doing his public duty and had no interest in our proposal ... Instead, the municipal manager told us that the city was not interested in our R20bn single investment."

On Wednesday, he said it would be "presumptuous" to release details of the proposal but let it slip that his plans include a shopping mall, convention centre, F1 race-track, marina and museum, "among other things".

The city's leaders were unaware of all of this, he said.

"(Sharpley) did not give us a moment to open a single page of our presentation. Instead, the way he talked, you would think it was his meeting."

Mbulawa demanded an apology from Sharpley and a written statement that Buffalo City was not interested in his proposal, if this was indeed the case.

So far, he has not received a reply but yesterday he appeared to have cooled off.

"Let's give the city the benefit of the doubt and hear what they have to say," he said.

Balindlela's spokesperson Masiza Mazizi said there was no trace of the complaint in the database of letters sent to Balindlela.

"We never received such a letter," Mazizi said.

A spokesperson from the mayor's office said a reply was being prepared.

It would be based on letters of reply from Sharpley as well as Buffalo City Development Agency officials, acting chief executive Lungelwa Sokupa and development planning manager Louis Roodt, who also attended the meeting.

Sharpley said he was "taken aback" by the complaint and surprised by its tone, as Mbulawa had not indicated any ill-feeling at the meeting.

He apologised for any offence caused but said Mbulawa's "serious allegations" were "grossly incorrect".

He confirmed his firm support for development in Buffalo City, but said that due to the level of interest from developers he had to give every proposal equal treatment.

Currently, the city's development agency is considering eight bids received for two beachfront sites with a combined value of R52 million. These were put out to public tender.

Sharpley stated in the meeting that unsolicited development bids might not be accepted because there was "huge interest in development in the city".

Furthermore, the meeting with Mbulawa had been for "tabling of ideas" rather than discussing a formal proposal.

He wished Mbulawa had raised his concerns at the time, instead of complaining to the mayor and the premier.

Sharpley also pointed out that Mbulawa's R20bn claim should be viewed in the context of the R7bn paid for Cape Town's Victoria and Alfred Waterfront last year.

As for refreshments, the visitors had in fact been served water at their request, Sharpley stated.

Mbulawa's party was made up of American financier, Leshy Paynter, vice-president of the International Funding Corporation, and the provincial Legislature's chief of security, Thembekile Mzantsi, founder of Mzantsi Investments which had set up the meeting with the municipality at Mbulawa's request.

Mzantsi declined to comment on the nature of the meeting, but Sokupa and Roodt agreed with Sharpley and were surprised by Mbulawa's complaint.

Roodt confirmed that the meeting had not dealt with specifics.

"The development proposal was very vague on how the proposals would actually be achieved," he said.

Roodt also said Sharpley had mentioned that Buffalo City Municipality "does not enter into private public partnerships or unsolicited bids outside of its normal bidding or procurement processes".

Daily Dispatch