'Transnet didn't sell sea'

The Sunday Times - which says it stands by its story -reported at the weekend that this was what was "secretly" involved in Transnet's R7 billion selloff of the V&A Waterfront in 2006.

Transnet has also dismissed claims that it kept vital information from certain bidders in the Waterfront deal, and that the winning bidder was allowed to increase its offer.

Chief executive Maria Ramos told reporters on Monday that a front-page report in the newspaper that Transnet "sold our sea", was false, misleading, irresponsible and defamatory.

She said the newspaper's map of the supposed area, a wedge covering some 90km2 with its apex on Robben Island, showed the port limits, not what was sold in the R7bn deal in 2006.

"We do not own the land under the sea," she said. "Transnet does not own the land within those boundaries. We do not own the land from Blouberg strand to Robben Island and from Robben Island to the Green Point lighthouse and under the sea...

Minuscule area

"And if we don't own the land we cannot possibly have sold it to anyone, foreign or local, and that's just the basic reality of life."

She said only a minuscule area of land next to Granger Bay was earmarked for reclamation, and that was in terms of an agreement that preceded the sale by five years.

Even with that land, the new owners, the Lexshell consortium, would have to seek environmental approval.

Ramos rejected the Sunday Times' suggestion that Transnet could face a R20bn claim from Lexshell if legislation goes through to make coastal land public property.

"The sale agreement does not contain any warranties or undertakings in favour of Lexshell in relation to the reclamation of land, nor does it contain any warranties or undertakings in relations to the anticipated development of the V&A Waterfront.

"So where this R20 billion number comes from in the Sunday Times, I suppose only the Sunday Times and its journalists would know."

The article had damaged the reputation of both Transnet and the country as a whole.

The parastatal had taken legal advice and was considering its options.

Public process

However Sunday Times editor Mondli Makhanya said on Monday afternoon that his newspaper stood by the story.

"The story is definitely true, and Transnet knows that the story is true," he said.

"If they intend to sue, we'll be ready. The facts are there."

Ramos also dismissed a claim by the Democratic Alliance in the Western Cape that Lexshell was given a chance to up its bid after making an initial offer.

The sale of the V&A Waterfront had been a very public and well documented process.

Anyone who had evidence of irregularities should lodge it with the auditors who had overseen the process.

"We wouldn't have sold it to anybody but the highest bidder," she said.

Transnet chief financial officer Chris Wells said the auditors had issued a report at the end of the sale process saying they were entirely satisfied with its fairness, transparency and completeness.

"No-one had a second chance: you put in your bid and that was it," he said.

- Sapa