ANC must not mess up R300b project, warns DA

EKURHULENI – While the DA has, until now, been unambiguously supportive of the Prasa project in Nigel, worth an estimated R300 billion with a potential of about 22 000 new jobs, we are vitally concerned about the many aspects that are either undone or have been left to the last minute, causing enormous unnecessary pressure.

While the ANC will react to our criticisms with the usual ludicrous claims that the DA is not in favour of development, the fact is that the DA was partly responsible for the decision to bring the project to Ekurhuleni in the first instance It was after much lobbying by the DA in August last year of Prasa CEO, Lucky Montana, and Group Board Chairman, Sifiso Buthelezi, that Prasa revealed that the site chosen to build a rolling stock plant to manufacture commuter trains for Metro Rail, would be in Ekurhuleni. But at the same time, we issued serious warnings to Council to get its ducks in a row quickly. We pointed out that the problem of land acquisition, a time-consuming legal process, had led to costly delays and over-runs on the Gautrain project, some of which were still the substance of litigation between the Gauteng Government and the Bombela consortium years later.

We reminded the ANC in Ekurhuleni that delays of this nature inevitably lead to projects being rushed at the end which, in turn, lead to companies being at the mercy of unions which are in a position to negotiate over-inflated increases in order to get the job done.

It does not give us pleasure to have been proved right. As a result of bad planning and feet dragging, an urgent Corporate and Shared Services oversight committee meeting had to be called this week to discuss the lease of Council-owned land to Prasa. Council is now under serious pressure to approve the lease TODAY (Thursday) as well as all the intricate detail which goes with such a large undertaking. Prasa has insisted that if Council does not approve this lease today they might consider taking their project to the Johannesburg or Pretoria Metros.

While we can’t tell if this is true or a bluff, the EMM cannot risk losing such a large economic injection, the potential for thousands of jobs for our people and the acknowledgement of Ekurhuleni’s contribution to the National Development Plan.

Council officials could have managed the processes much better so that councillors and specifically, the Corporate and Shared Services Oversight Committee, could have applied their minds to consider, understand and provide direction in respect of the extensive detail and processes required .

For example, reports and studies on ecological assessments had to be completed before the item came to Council for approval, an important factor given that there are wetlands near the site. But other key aspects were also neglected before Council approval was sought, such as financial implications and models of projected income and expenditure and the public participation process in terms of the Municipal Systems Act of 2000.

Monitoring and oversight will therefore have to be more stringent going forward, possibly on a monthly basis, by the relevant oversight committees in order to assess progress, given that proper process was not observed.

It is unacceptable that much of the pressure is coming from senior Council officials who are of late, routinely pushing Council, Council committees and councillors to make decisions on serious matters, procedures and projects as a matter of urgency. As we in the DA have so often cautioned, suspect decisions by Council can cost the Metro millions in legal and other costs if mega projects such as this one go wrong.

This being said, the Democratic Alliance will continue to support this massive project for the sake of the people of Ekurhuleni, but will not hesitate to come down hard on politicians and officials who waste public money by managing projects and processes so badly.

Issued by the DA