Opposition objects to KDM “corrupt” mall deal
Claims that the Stanger golf course redevelopment tender was procedurally unfair.
Opposition parties have objected to what they claim to be a corrupt bidding process linked to the proposed redevelopment of the 30 hectare Stanger golf course.
The preferred bidder, who has not been given the job yet, presented a redevelopment proposal that makes provision for a 30 000 m² shopping mall, a new civic centre, intended to be a one-stop centre for government services, an amphitheatre, rehabilitation of roads, storm water and electricity infrastructure and the maintenance of the 12 hectare protected wetland area that forms part of the golf course.
However, Bikram Sing of the Minority Front (MF) said the original redevelopment plan was for the golf course only and did not include the recreation and country club grounds and the building of a mall.
The Stanger community is outraged by KwaDukuza Municipality’s (KDM) plans to get rid of the sporting facilities at the recreation grounds without any clear plan for a proper sports precinct elsewhere in KDM.
Currently, the recreation grounds host a soccer field, cricket oval, combo court incorporating volley ball, netball and basketball courts, tennis courts and a swimming pool that will all have to be relocated if the preferred bidder’s proposal is accepted.
The preferred bidder, Double Ring Trading (Pty) Ltd belongs to Durban multi-millionaire developer Vivian Reddy, who is also a regular donor to the ANC.
Reddy announced in February that for his 62nd birthday, he would build a job opportunity centre for the town, free of charge, where 3000 people will be trained every year.
The African Christian Democratic Party’s Nel Sewraj said the tender process was procedurally unfair because preferred bidder changed the specifications of the development during the bidding process to include a mall, changing the site to a mixed use site, and including the recreation grounds that were originally not included.
“The timing of the preferred bidder’s “gift” of a R6 million job opportunity centre to KDM could not have been more improper, considering that the bidder’s tender was undergoing the bidding process,” said Sewraj.
He said in approving Reddy’s gift, KDM compromised the credibility and integrity of the supply chain management process of the mall development and that both KDM and the preferred bidder did not comply with ethical standards.
Sewraj accused KDM of having done too little groundwork, pointing out that there was no clear plan or comprehensive financial plan of action for a sports precinct in KDM. He also questioned why the tender was only advertised in national media and not in local newspapers.
Democratic Alliance (DA) caucus leader, Madhun Sing said he was concerned about the impact the development would have on ratepayers. He said rates would increase in years to come because of the build model chosen for the development in which the developer takes on the financial, technical and operational risk, and later receives payment from government in a “rent-to-own” model. The model is more expensive but reduces the risk to KDM.
“The DA’s position is clear; we will support development that creates job opportunities as long as a checklist has been adhered to. The DA would caution the municipal manager not to sign any documents until the matters raised in council are addressed, including the financial breakdown as per council resolution,” said Sing.
The project is timed to start in January 2016 if the preferred bidder gets the job.
