Sunday, February 27, 2011

Zuma's R65m Nkandla splurge

President Jacob Zuma is expanding his remote family homestead at Nkandla in rural KwaZulu-Natal for a whopping price of R65-million -- and the taxpayer is footing the largest chunk of the bill.

The expansion will turn the presidential homestead into a sprawling precinct that will include a police station, helicopter pad, military clinic, visitors’ centre, parking lot with parking for at least 40 vehicles and at least three smaller houses that will serve as staff quarters.

Phase one of the project, comprising two houses, one of them a double-storey structure, and a guesthouse, is already under way.

Given that state money is involved, how future presidents will benefit from the development remains unclear.

Government insisted this week that it has no record of such a development and no hand in any of Zuma’s personal property endeavours.

Shortly before the Mail & Guardian’s deadline the presidency released a statement changing its tune. The statement reads: The Zuma family planned before the elections to extend the Nkandla residence, and this is being done at own cost. No government funding will be utilised for the construction work.

“Outside the perimeter of the Zuma household, a few metres from the house, the State is to undertake construction work in line with the security and medical requirements relating to Heads of State in the Republic. The security services have to construct accommodation facilities for their staff that attend to the President, erect a helipad to ensure safe landing for the Presidential helicopter and a clinic as per medical requirements.”

Public works spokersperson Koketso Sachane said on Wednesday: “Please note that there is no work or extension project taking place at President Jacob Zuma’s homestead at Nkandla.”

See video footage of the development

The presidency also claimed no knowledge of such a project, saying that Nkandla is Zuma’s private home and therefore no business of the state.

It accused the M&G of “setting out to embarrass the president” by publishing a story.

Further attempts to obtain comment from communications head Vusi Mona were futile.

On Thursday December 3 Mona promised to consult Zuma and get back to the M&G, but he did not respond to calls later in the day.

However, the M&G understands that a meeting to discuss the project was held at Nkandla on August 2, attended by the surgeon general, Vejay Ramlakan, and a representative of the department of public works.

Ramlakan, through his spokesperson, referred all queries to the presidency “because it is happening at the president’s homestead, so it is his matter to comment on”.

When the M&G visited Nkandla last weekend, an earth-mover was excavating the ground next to the existing homestead to prepare for the construction of the initial phase of the project.

Two cement mixers and two water tanks were on site as well as construction offices where the architectural plans for the construction are kept.

About 12 construction workers were working overtime to ensure the project gets off the ground.

The site was devoid of company signage.

The contractor told the M&G the three new houses would cost R4,1-million and would be funded by Zuma in his personal capacity. However, this was only phase one of the project.

The total cost of the development will run to R65-million, according to sources closely involved with it. “It is R65-million, but it will probably be more in the end. You know how it goes with building, the prices always go up and up,” one said.

There is no time frame for the completion of the development.

The M&G understands part of the reasoning behind the mammoth extension is to enhance the homestead’s capacity to host VIP guests and their retinues.

On election day this year former Nigerian president Olusegun Obasanjo -- in the country as an election monitor -- popped into Zuma’s home after a helicopter flight. More of such visits are expected in the future.

A military source said there was also a need to extend the homestead’s capacity to house Zuma’s health and security staff, most of whom stay in Eshowe when Zuma is at Nkandla.

A source said: “This is cumbersome in terms of response time, so the idea was to build a bigger facility to house all the support staff in Nkandla when the president is there.”

The houses are apparently being built to accommodate two wives currently living at Nxamalala, MaNtuli Zuma and MaMbhija Zuma.

The complex already includes a house for his first wife, Sizakhele, built in 2000 shortly after he became deputy president.

Sizakhele uses the main house with various relatives, mostly women and children, who live in rondavel-type structures around her. A silver E-class Mercedes and a white Toyota Prado 4x4 are parked outside and serve as the first lady’s transport.

During the corruption trial of Zuma’s former financial adviser Schabir Shaik in 2004, the state produced evidence that alleged bribes flowing from French arms firm Thales helped finance the building of the homestead.

Zuma’s last visit to Nkandla was in September according to a security guard, but he is expected to spend time there over the Christmas period.

He will then host the annual Christmas party for children and attend to the long queues of local people who line up outside to visit him and discuss issues pertaining to the village.

According to architectural plans shown to the M&G, the precinct will include a garden that will house ancestral graves. The area is due to be cordoned off by a brick wall which will make provision for only one entrance.

The two new main houses are kidney-shaped and contain his-and-hers bathrooms, formal living rooms, walk-in closets and a study.

One house contains four bedrooms, while the smaller has three.

Double-volume ceilings will be fitted to the homes, which will sport thatched roofs, in the same style as the current homestead, which is cordoned off by green palisade fencing.

The plans were drawn up in August by Durban architects, the names of whom the M&G was unable to establish. However, no record of the plans could be found at the local deeds office in uThungulu municipality in Richards Bay.

Nkandla houses 13 000 people, many of whom have no access to electricity, and in-house water is a rarity. Work is taking place on the road leading to the presidential homestead to make it more accessible.

Softening the blow
The Mail & Guardian sought throughout the week to obtain comment from the Presidency, writes Nic Dawes, the editor of the M&G.

"Instead of answering our questions it released a statement to all media shortly before our deadline in an apparent attempt to limit the impact of the story.

"The statement was issued late on Thursday afternoon, just before the Mail & Guardian's deadline in a clear attempt to limit the impact our lead story on Friday, which exposes the new construction.

"We discovered the building work during a visit to Nkandla over the weekend, and were able to establish details of the large new houses, clinic and helipad that are being built.

"When we approached the Presidency for comment on Tuesday they refused to speak to us, while the department of public works untruthfully insisted that no construction was under way.

"Journalists are enjoined by the Press Code and legal precedent to provide the subjects of stories a fair chance to respond. We followed this principle, which we believe in, strictly.

"By effectively breaking our story in advance, and robbing us of exclusivity, the Presidency has damaged the relationship of trust that we had developed with officials there," said Dawes.

"Competition is an important part of a vibrant media landscape, and the drive to secure scoops is an important energising factor in our constitutionally prescribed work. Skilled communicators understand this, and realise that they need to be able to work with us. If a story represents problems for them they attempt to provide convincing answers, or spin, they do not torpedo us by releasing press statements to our competitors before we can publish."

"If government communicators make it impossible for us to trust them with basic courtesy, we will struggle to share information with them, and two things will suffer: their ability to try and shape our opinions, and the willingness of journalists to seek all sides of every story. Ultimately, that is bad for democracy," Dawes added.

- M&G

Thursday, February 24, 2011

W.Cape housing delays due to poor monitoring - MEC

Western Cape Human Settlements MEC Bonginkosi Madikizela has admitted his department’s poor monitoring of housing projects has contributed to more than 30 projects being stalled.

Madikizela said the affected projects form part of the People’s Housing Process initiative.

The projects that have been put on hold have been referred to the Special Investigating Unit to be probed.

The MEC said fraud, corruption and collusion contributed to poor workmanship and delays in the provision of decent houses.

He also admitted a dismal lack of proper monitoring by government on these projects.

Madikizela said they are putting together a plan on how to better deal with the problem.

- Eyewitness News

Sunday, February 20, 2011

Cracks appear in District Six dream

While 44 families were celebrating their imminent return to District Six after receiving their keys from President Jacob Zuma recently, one of the original returnees was contemplating her eviction.

Mymoena Kreysler, 65, moved into one of the first 24 homes that Nelson Mandela handed over on February 11, 2004 in phase 1 of the redevelopment.

It was her father Ismail Petersen’s claim, but he died four months before the house was ready.

Moving back to the area from which she was forcibly removed as a teenager was a dream come true – until the house started cracking and springing leaks.

There is not one room in the three-bedroomed double-storey house that doesn’t have several cracks and the cornices are leaking.

“Every time the wind blows it feels like it will take the roof off.”

Kreysler, who works at the provincial Health Department, said she started off paying R500 a month towards the R60 000 that the units cost, but stopped some time ago when she saw the defects.

“These homes were clearly built by non-professionals to save money.”

She said she wrote to the District Six Redevelopment and Beneficiary Trust to ask them to address the faults and the fact that none of the 24 families had title deeds to their units, but all she got in return was an eviction order.

“The trust wasn’t prepared to engage with me when I asked questions. I was called a detractor.”

Kreysler said the trust was questioning her father’s claim.

She boycotted the recent “Second Homecoming” celebration held at the Moravian Church, which was attended by Zuma, Minister of Rural Development and Land Reform Gugile Nkwinti, Minister of Human Settlements Tokyo Sexwale, and Planning Minister Trevor Manuel.

Kreysler said the trust was supposed to be fighting for the poor but instead they had become “landlords collecting rent”.

District Six Beneficiary Trust executive member Nadeem Hendricks said he could not comment on Kreysler’s case, except to say there was a serious investigation of her claim.

“Our legal team is addressing the matter,” Hendricks said.

He said “two or three” families were not paying.

An investigation was being done of the cracks in the pilot project houses. He said they weren’t due to poor workmanship but were “settling cracks”.

“It is because of the nature of District Six. When the apartheid government threw down the buildings they left the rubble, which meant that the builders had to go down much deeper for the foundations.”

Hendricks said the issue was being investigated by engineers and the project manager. He would would check tomorrow to see how far they had got.

He added that the returning 44 families who received their keys at the ceremony should have moved in to their new homes by the middle of next month.

Also protesting at the ceremony was the District Six Advocacy Committee, which handed over a memorandum to the Office of the Presidency in 2009 calling for a full forensic audit, and full compliance with and enforcement of the Restitution of Land Rights Act of 1994.

Committee chairwoman Tania Kleinhans said the 44 houses in phase 2 were built on land belonging to two of their members, Faizel Essop and the Hendricks family.

They had asked for a moratorium on development until the issue was sorted out, but they had not received a response. - Sunday Argus

Monday, February 14, 2011

Government’s RDP houses mess will cost South Africa R58bn

“If we were to do effective rectification, we would require R58-billion – that is not for building, just for rectification,” the director-general of the Department of Human Settlements, Thabane Zulu, told a parliamentary portfolio committee.

But since minister Tokyo Sexwale said six weeks ago that he had set aside R1.3-billion to fix sub-standard houses this year, the new estimate of R58-billion came as a shock to MPs.

Well, a wise man once said that it is better to measure ten times and cut once than to measure once and cut ten times.

Cutting corners always costs more than doing something right the first time.

- Timeslive

Saturday, February 12, 2011

Give us 3 years for District 6: Zuma

President Jacob Zuma laid his head on the block over District Six, guaranteeing that development in the area will be completed in the next three years.

“The time is 36 months. Everything will be done and nobody can change that,” he said to huge applause.

Zuma was speaking at the District Six “Second Homecoming” celebration held at the Moravian Church yesterday where 44 returning families were handed the keys to their new homes.

It was a symbolic handover though. Families will not move in immediately because work on the houses is not finished.

The event began two hours late, while some elderly participants waited in wheelchairs in the blazing sun as dignatories enjoyed refreshments in the church hall.

Recipient Esther Cottle, 68, who has been staying in Lentegeur, said she still had to organise a bond of R225 000. As a widow and a pensioner she said she was not sure she would qualify for one, but was excited at the prospect of moving back.

“I really thought it would never happen. I was so shocked when I heard I would be getting keys but we are still waiting to hear about the nitty gritty from the District Six Beneficiary Trust.”

Both Cottle and Helene Paulse, who is the recipient of her father’s claim, have retained strong ties to District Six by attending St Marks Church every Sunday since they were forcibly removed.

A number of disappointed claimants also attended the event in the hope that they would make the next cut.

One of them was Mogamat Yusuf Davids of Bothasig, who was born next to the mosque 70 years ago.

Charmaine Bailey, who lodged her claim in 1996, said she was not sure how the trust chose people as she had been on a list in 2006. Her mother was 81 and they were battling to find out when the next phase of development would start.

Only 68 houses have been built since 2000.

Phase two was supposed to include 114 units but only 44 were handed over yesterday.

Minister of Rural Development and Land Reform Gugile Nkwinti said that the remainder would be ready in three to four months and that the necessary funds would be made available.

He said that phase three would be an integrated social and economic development.

Judge Siraj Desai said private developers had been eyeing District Six since 1979 but that a campaign had been launched to prevent this.

He lauded Dr Anwah Nagia, chairman of the trust, for sustaining the campaign.

“For 32 years his mission was to preserve District Six for development for the people of District Six.”

Minister in the Presidency for planning Trevor Manuel echoed the sentiments of a woman calling from the audience who said: “Ons wag te lank. (We’ve waited too long). Let’s get on with this thing.” He told Zuma: “Tell your ministers to sign new agreements to hurry up with District Six.”

A group of Rastas from Hout Bay gathered to chant “restore Hout Bay” and were moved by police.

Also present was Minister of Human Settlements Tokyo Sexwale, Western Cape Minister for Social Development Patricia de Lille and the deputy mayor of Cape Town Ian Nielsen.

- IOL

Thursday, February 10, 2011

Housing heads must roll: Cosatu

The Congress of SA Trade Unions has called for "heads to roll" after an announcement by a human settlements official in Parliament that it will take R58 billion to fix poorly built RDP houses.

Heads must roll for this squandering of taxpayers' hard-earned money.

"This is a painful example of corruption, gross negligence and incompetence," the federation said in a statement on Thursday.

"The Minister of Human Settlements, Tokyo Sexwale, must urgently rectify the problems with these houses and ensure that those responsible for this disaster are brought to book."

Human settlements director-general Thabane Zulu told the human settlements portfolio committee it would cost about R58 billion for the human settlements department to fix poorly built houses.

The federation is "even more outraged" at Zulu's admission that the department had not yet found a way to blacklist the contractors who built the "substandard houses".

"Many of them may still have contracts with the national government to build more substandard housing," Cosatu said.

"Heads must roll for this squandering of taxpayers' hard-earned money, especially those workers who do not own houses and will have to wait even longer for a house thanks to this debacle."

The federation said the "outrage" strengthened the argument for measures to be taken to stop the abuse of tendering procedures - which had allowed incompetent builders to keep winning government contracts and failing to deliver the much-needed houses to the people.

- Timeslive

Shack dwellers’ phones could be cut by Rica

BY THE end of June, several million cellphone subscribers could be disconnected. That is the cutoff date by when cellphone companies will have to forfeit existing contract and pre-paid customers who are unable to provide both valid identity documents and proof of residence.

This is according to regulations imposed by the Regulation and Interception of Communications Act (Rica).

Vodacom and Cell C estimate that at present nearly a fifth of their customers have not signed up for Rica. MTN didn’t provide any substantive details as they’re a publicly listed company and are in a closed reporting season.

Cell C said only 10% of its customers in seven provinces have yet to comply and register details with the telephone companies. But in KwaZulu-Natal 27.8% of Cell C’s customers and in Gauteng, 24.6% of their customers had yet to comply.

The company is aiming its communication campaigns concerning Rica at people living in agricultural, tribal or sparse areas, as well as those living in townships.

Cell C’s regulatory compliance specialist, Phila Mtya, said 40% of these customers “could, but have yet to” provide details for Rica.

Mtya is hopeful that those who have yet to sign up in the mainly rural areas will be able to do so by obtaining affidavits from tribal chiefs – or with the help of local shops and schools, which will be able to provide local addresses.

Vodacom, the dominant cellphone company with 43% market share, has 3.7million customers that have yet to register. Of those, 650000 have contracts and about 3million are prepaid customers.

Maureen Mnisi, the Gauteng chairperson of the Landless Peoples Movement, said this was a big concern for people living in informal settlements.

“You cannot receive letters, so it is already very difficult to communicate. We need cellphones. If you have an emergency at night, how can you access hospitals or emergency services? This is all about service delivery.”

Deon Rudman, deputy director general in the legislative division of the Department of Justice, said companies had “competing priorities” and that Rica was dealing only with serious crime and tracing criminals.

All three cellphone companies have asked the government to take an active role in communicating the need to register for Rica.

- The New Age

This place is a dump - N2 residents

Residents of the N2 Gateway housing scheme in Langa say they have been forgotten.

The once-secure government housing complex next to the N2 is now a dump, says Mbuyi Nogahtshi, who moved to the area in 2005, just after it was opened by former housing minister Lindiwe Sisulu.

“I clearly remember the day I moved in here. I was so happy. My life had changed and I thought the government was finally delivering on its promises. But I didn’t expect just to be left here without any services. The first few months were okay, but now this place is a dump. Our kids are not safe and the houses are falling apart,” Nogahtshi said.

Started in March 2005, the N2 Gateway was the pilot scheme for a new Comprehensive Housing Plan (CHP) launched by former president Thabo Mbeki.

The CHP was envisaged as a joint venture by the national, provincial and local governments to prioritise housing.

The N2 Gateway planned to deliver 22 000 homes within six months. This was later downgraded in 2007 to just over 16 000.

To date, only 7 462 houses have been completed and handed to beneficiaries. A further 1 194 are at various stages of construction in Joe Slovo and Delft.

An auditor-general’s report compiled in 2008 and tabled in Parliament in April 2009 revealed that the project had “not been managed economically, efficiently or effectively”.

A memorandum of understanding was signed by the three tiers of government in 2005 to define roles and responsibilities.

However, the A-G found that the necessary legislation and policies were not in place when construction began. The memorandum was also found not to clearly define different roles, which led to uncertainties about accountability when things went wrong.

In March 2009, state-owned housing company Thubelisha, which had implemented the project, closed down and the Housing Development Agency took over.

During a visit to the N2 Gateway in Langa on Friday, residents complained about cracked walls, leaking roofs and ceilings that “gave in” a year after they moved in.

Thousands of residents of the Joe Slovo informal settlement, across the road from the Gateway precinct, say they will accept anything, and have even considered moving into duplexes owned by FNB which have been empty for three years.

The 43 two- and three-bedroomed duplexes, only metres from the N2 Gateway scheme, were built in 2007. They had all been sold, according to Housing MEC Bonginkosi Madikizela, but home owners could not move in until the city reconstructed road servitudes.

Sophia Mhlangu, a pensioner who moved into the N2 Gateway in 2006, said there were a number of building defects which she reported to the developers after moving in.

“It’s even worse now,” she said. “It’s a lovely place, but we feel forgotten. All we want is for them to fix the defects and have the roads fixed. There are potholes everywhere.”

Steven Lennox, who lives in a one-bedroomed apartment with his wife, pays R700 a month. He said he had complained to the Housing Department about the defects, but was still waiting for answers.

“It’s as if they don’t care,” said Lennox.

Madikizela said: “We are aware of the defects and are busy fixing them. That land belongs to the city, which has a land availability agreement with a contractor. That contract expires at the end of the month.

“The city will then have to decide on one of two options: either they ask us (the provincial government) to assist with funding and to appoint a service provider, or they transfer the land to us.”

Madikizela said the province and the city were waiting for the present land availability agreement to lapse before they took action.

“Next month, we will know for sure what our next step will be.”

- Cape Argus

Wednesday, February 9, 2011

If they build other houses, we'll destroy them - MEC

BACKYARD residents of Mandela Park in Khayelitsha say they will sue the Western Cape government after it allegedly destroyed 26 houses and shacks last Friday.

Human settlements MEC Bonginkosi Madikizela personally accompanied the police and anti-land invasions unit to demolish the houses and shacks.

The residents had built the houses and shacks on land they invaded earlier. Their leader, Khaya Xintolo, said they had been on the waiting list for houses for 15 years.

"By occupying these empty plots we were trying to resolve the housing backlog. We plan to take this matter to court," Xintolo said.

Madikizela left three complete houses standing but gave the owners 12 hours to demolish them, and then painted a large "X" on each house, added Xintolo.

"Many of the homes were occupied, so the evictions without a court order are in contravention of the Prevention of Illegal Evictions Act. That makes Madikizela's actions criminal," said resident Loyiso Mfuku.

In another twist, local DA chairperson Mxolisi Molly allegedly fired shots at two backyarders. He was arrested and detained at Harare police station in Khayelitsha, where he was charged with attempted murder.

But the charge was allegedly later changed to common assault. Molly was released on warning and will appear in court on Monday.

When Mfuku and three other backyarders went to ask why the charges against Molly had been downgraded, they were arrested and only released on Sunday morning after being charged with common assault.

"In Mandela Park, there is no separation of politics and governance. The DA and ANC interfere in the development process in order to support their own members and political agendas," Mfuku said.

But Zalisile Mbali, Madikizela's spokesperson, said the MEC had not interfered with the case against Molly.

Madikizela told Sowetan he was not obliged to inform the group that he was coming to demolish their dwellings.

"How can you consult someone who is stealing your land? These people invaded government land. How do they expect me to consult them?" he asked.

"If they build other houses, we will demolish them again. We won't allow anarchy here."

But unhappy residents said their houses had cost them a lot of money and claimed the land they built on had stood empty for more than six years without any development.

- Sowetan

Friday, February 4, 2011

Hout Bay community upset

A row has erupted between community groups in Hangberg in Hout Bay over a mediation process involving city consultant Brian Williams.

Last September there were violent clashes between law enforcement officials and Hangberg residents who resisted the demolition of shacks erected in a firebreak on the Sentinel.

Later, the Western Cape High Court ordered the parties to seek mediation.

Williams, a consultant who had previously done work for the provincial government, was chosen to mediate.

This week Hout Bay Civic Association (HBCA) member James Davids said the association was refused participation in the mediation.

He said 39 people Williams said had been elected as Hangberg representatives did not have the whole community’s blessing.

“Williams knows about an elected civic association representing residents, but he started another group.

“This created division in our community. The 39 people don’t know organisation and don’t question him,” Davids said.

He said 324 residents had signed a petition recently giving the civic association a mandate to represent them.

Greg Louw, one of the 39 representatives, said the community chose Williams as a mediator and that Hangberg residents from each “block” had elected people to represent them in mediation.

He alleged some civic association members had pushed “a certain agenda” and that they and the ANC had “hijacked” a peace march after the violent clashes.

“With elections coming, they have their own agendas, but our community is saying it is time Hangberg people talk for Hangberg.

“Our people are tired of fighting,” Louw said.

He rejected allegations that Williams’s neutrality was affected because mediation was held on the City of Cape Town’s premises - as was a press briefing that followed on Tuesday.

“We used the city’s resources. It was us who asked the mayor’s office to invite the media. We don’t have resources or infrastructure,” he said.

Vanessa Witbooi, an ANC member in Hangberg, said: “The community is divided and this plays into the hands of the city. Williams should be neutral. A legitimate civic association wrote to him several times to be part of the process, but he ignored requests.

“His process of electing representatives is flawed. How can you invite people to a meeting 15 minutes before it begins? Then some were allowed in and others not.”

About Louw’s claim that the ANC had an agenda, she said: “The ANC branch has members affected. It assisted people arrested at the time and arranged legal support for them.

“After that the ANC decided to step back and let the HBCA and residents deal with the issues.”

Williams said the community’s lawyer Shihaam Samaai recommended him.

The parties, including SA National Parks, the province and the city had accepted him because of “my vast experience”.

Community co-ordinators had interacted with residents and made house calls and issued notices of meetings, he said.

“It is natural that sometimes people are not home when visits occur,” Williams said.

“These meetings are all clustered. There were meetings called for backyard dwellers, those in temporary structures or those in permanent structures - not compliant with the regulations. Three election meetings were called in different parts of Hangberg.”

He said 15 cluster election meetings were called and in 11, elections proceed.

He said parties in the mediation had afterwards all rejected the civic association’s request to attend.

In response to a question on who was paying him, Williams said: “I am a service provider - Brian Williams Consultancy - and currently the costs are shared by the parties.

“The community as one of the parties, however, do not pay me, but this does not affect my neutrality.”

- Cape Times

Stadium cost: Cape seeks answers

The City of Cape Town and Western Cape Premier Helen Zille are demanding answers after the Competition Commission announced that Cape Town Stadium was one of a host of construction projects being investigated for alleged bid rigging.

The commission said yesterday it was investigating 65 cases involving 70 construction projects worth about R29-billion after

“uncovering widespread anti-competitive conduct through various arrangements” within the industry.

The Cape Town Stadium will ultimately cost R4,3bn, although the original price was R2,9bn.

Now city authorities and Zille say they want to know whether Cape Town’s ratepayers overpaid for the stadium.

Referring to a number of major projects, including the stadium, Durban’s Moses Mabhida Stadium and the Gautrain, the commission alleged that “major firms in the (construction) sector, for example, have held meetings to allocate tenders and police each other’s behaviour through a structure referred to as The Party”.

The commission called for construction companies to apply for “fast-track settlement” on condition they provided “complete and truthful disclosure of information regarding collusion”.

“In addition the firm must undertake to co-operate and cease anti-competitive conduct. Upon complying with the requirements, the commission will settle with participating firms with a reduced administrative penalty compared to the penalty if each transgression were to be prosecuted separately.”

Zille, who was Cape Town’s mayor when the contract for the stadium’s construction was awarded, said today: “The people who led the negotiations with the winning consortium were the best people we had, led by Mike Marsden.

“Clearly if there is any suggestion of collusion, one wants to get to the bottom of it and get to the facts. In a situation of high demand, limited supply and great time pressure, it is particularly important to prevent collusion among major bidders - who should be competitors in order to ensure the best value for money,” Zille said.

Marsden confirmed to the Cape Argus today that city authorities shared precisely the commission’s concerns, and had been working with it “for some years now”.

“We were concerned about the escalation in prices. The original contracted price of the stadium was around R2,9bn, and the final completion price will be around R4,3bn.

“We were also concerned about certain limited responses to tenders, and although we had no evidence, we had concerns. That remains the situation today - we have no evidence but we have concerns - and nationally there was allegedly a replication of this at other stadiums.

“We have made submissions to the commission, but we have not received any formal response,” Marsden said.

The commission said in its statement, published on the internet: “Subsidiaries of several major construction companies are involved in these cartels.

“In addition, 150 marker applications (indicating an intention to apply for corporate leniency), some relating to more than one project, have been received by the commission. Most of these corporate leniency applications were submitted by Group Five, which has been co-operating with the commission since 2009. In addition, applications were received from Grinaker-LTA and Murray & Roberts, who have committed to co-operate.”

Murray & Roberts was the joint winning bidder who built the Cape Town Stadium, along with Wilson Bayly Holmes-Ovcon (WBHO).

M&R and WBHO were not available for comment this morning.

The commission said 65 “bid rigging cases” were under the microscope.

“Further, markets for construction products such as long steel, mining roof bolts, concrete pipes, plastic pipes, wiremesh, reinforcing steelbar installation and pilings construction have also been investigated.”

- Cape Argus

Thursday, February 3, 2011

N2 Gateway Housing Project back on track - MEC

Western Cape Human Settlements MEC Bonginkosi Madikizela on Thursday reported that the N2 Gateway Housing Project will be back on track soon.

Madikizela has confirmed a further 3,000 housing units will be constructed in Delft.

The project has been mired in controversy for several years. Officials have been criticised for poor planning and insufficient consultation with residents.

The MEC previously admitted the project’s first phase was flawed.

However, he said the budget and plans for the next phase of construction are in place.

“If we were not delayed by the national minister, we had plans to actually go and do the ceremony tomorrow, because that is where we are. We’re done with the plans, the contractor is on site,” he said.

- Eyewitness News

Wednesday, February 2, 2011

Designers seek creative solutions to rebuild Haiti

PORT-AU-PRINCE - From hemp to Styrofoam, from bamboo to recycled rubble from Haiti's streets, ideas are flowing here on how best to rebuild the 200,000 homes and buildings damaged or lost in last year's quake.

More than a year after the capital was devastated in the January 12, 2010 earthquake, real reconstruction has yet to start with Port-au-Prince streets still strewn with an estimated 10 million cubic meters (yards) of rubble.

A long-delayed conference this week gathered hundreds of international firms aiming to help the Caribbean country "build back better."

At Hotel Karibe, international and local homebuilders shared blueprints and dollhouse sized-models of Haitian homes at an outdoor exposition.

"It's basically Styrofoam with a cement coating on the outside," said Scandia Pacific president Kim Christiansen, showing off the materials developed by his company based in Kirkland, Washington.

He works with foam building materials, but says the company will build with whatever materials the Haitian people want.

"That's what Haiti needs to get involved in. Not the old stuff," Christiansen said. "The pyramids have been around for a long time. Stone, brick. What we need to do is something new. Pre-fab."

But David Mosrie, whose Push Design firm is based in North Carolina, said most companies were only paying lip service to innovation.

His proposed home is built entirely of hemp, pounded into fibers and molded together with a limestone derivative.

But asked whether fun-seekers could smoke it, he laughed, saying: "It takes 2,500 pounds (1,130 kilograms) to get high. So good luck."

Homebuilders traded business cards and queries, but spoke mostly to each other as no real funding opportunities were offered...

- abs-cbnnews