This comes after members of Military Veterans and a group called Amalgamated Business Forum halted construction work on the Leeuwpoort housing development, demanding control over the project’s 30 per cent local empowerment spend.
According to metro spokesperson Themba Gadebe, projects over R50-m are required to allocate 30 per cent of the project value to local spend as per the Gazetted regulations.
“This 30 per cent includes labour, suppliers, subcontractors, and training and skills development.
“The city has put in place a Labour and Procurement Desk in both Reiger Park and Parkdene in order to manage both the employment and procurement processes on the projects.
“The Leeuwpoort Development Project is implemented through a Turnkey Developer – Leeuwpoort Development Corporation (LDC) – for the design and build of the entire project as per the Land Development Agreement entered into between the City of Ekurhuleni and LDC.
“LDC has in turn appointed contractors for the construction of bulk infrastructure and internal services. The city does not have a direct contract with the contractors and they were not appointed by the City of Ekurhuleni,” explained Gadebe.
“Basically, such awarded projects are subjected to compliance to the 30 per cent subcontracting policy, which requires that 30 per cent is set aside for local beneficiation and participation.”
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