Row erupts over R7bn port tender

19 December 2006

A bitter row erupted on Monday between two giant construction companies over who should be awarded the multibillion-rand tender for the new Dube Trade Port, which will incorporate King Shaka International Airport.

This follows Monday's announcement that Group Five's Ilembe Consortium had been selected as the preferred bidder for the lucrative R7-billion contracts.

The Indiza Group, which lost the bid, is now spitting venom and has said it will appeal to the responsible minister to have its proposal fairly adjudicated.

The move is expected to delay the start of the construction as the airport must be completed before the soccer World Cup in 2010.

Sources say Indiza was crying foul because Ilembe's pricing was about R500-million more than its bid.

The Dube Trade Port was not available to comment on the claim.

It is understood that the contest for the Dube Trade Port's tender saw ANC bigwigs fighting against each other as both Ilembe and Indiza teams include senior ANC personalities.

The Daily News has been informed that Indiza's team has Prince Sifiso Zulu, Judy Nxasana, Themba Ngcobo, Moses Tembe, Ashwin Trikamjee and former Denel boss Sandile Zungu, while Ilembe has Durban tycoon Vivian Reddy, entrepreneur and former Gauteng premier Tokyo Sexwale and Vusi Mavimbela, a former National Intelligence director general and former President Thabo Mbeki special adviser.

The Indiza Group on Monday lambasted the Dube Trade Port, saying it had entered into negotiations with the Ilembe Consortium as preferred bidder, without a fair comparison of the tender price and key technical and commercial issues of Indiza's proposal.

"At this stage, Indiza is restricted by way of signed confidentiality agreement from disclosing details. It can however, say Dube Trade Port's conduct to exclude Indiza is unlawful, contrary to Indiza's right to fair administrative process," the group said.

The group argued that its members had substantial experience of the project and that every effort had been made to submit a proposal that is not only compliant but outstanding in all respects.

A war of words is expected to intensify when the preferred bidder for the King Senzangakhona Stadium is announced in the next few days.

Source: IOL