Cape Town stadium construction probed

Cape Town stadium construction probed

2013-02-04 08:38

Cape Town - The Hawks are probing allegations that the City of Cape Town was overcharged for Cape Town stadium through collusion by construction companies, the Cape Argus reported on Monday.

The Competition Commission had also advised the city it would hold a public tribunal to hear the allegations.

The two-pronged investigation followed the commission's announcement in 2011 that the stadium was one of many construction projects being probed for alleged bid-rigging.

It said at the time it was investigating 65 cases involving 70 projects worth about R29bn after "uncovering widespread anti-competitive conduct through various arrangements" in the industry.

The stadium's initial price was R2.9bn, but ultimately cost more than R4.3bn.

Cape Town city spokesperson Kylie Hatton told the newspaper if the allegations were proved true, the city could take a number of steps, including legal action, to recover costs, a formal civil claim, and/or officially blacklisting any party found guilty.

  • - 2013-02-04 08:46

    Stolen money should be recovered. Imagine how the Gautrain costs almost trebled for no reason under the sun.

      Poloyatonki - 2013-02-04 09:17

      The issue here is about Cape Town, not Gautrain.... Typical DA supporters.

      john.loveland.9 - 2013-02-04 09:50

      @ Poloy... The issue here is not about Cape Town or the DA, its about corruption and collusion.

      Willie - 2013-02-04 09:54

      How do you know that teddy is a DA supporter ?

      pws69 - 2013-02-04 09:58

      @PolioDonkey.Troll, The reason that CT stadium is being prioritised is because the DA lead WC government are the ONLY ones to have full co-operated with the CC. The DA voiced concerns early on, and have been a driving force behind the investigation. And that is why the WC is the best run province in the country.

      DuToitCoetzee - 2013-02-04 10:41

      @Poloy. If you red the "more original" article you would have know that this stadium in one of plenty that are an "exchange" deal between the biggest construction companies in SA. Even the Nelson Mandela bridge is part of it and this stadium seems to be the only one. so far, in Cape Town. ...but as always news24 reporting in such a way that people like you, the uninformed, will do these comments and clicks by the thousands. You just got suckered by them to maintain their ratings. Why do not fight them because they take your-likes for a gat or are you from them?

      DuToitCoetzee - 2013-02-04 10:49

      Copied from Rapport. In die beëdigde verklarings word beweer dat daar grootskaalse konkelry was met projekte soos die ENB-stadion (Soccer ­City) in Johannesburg, die Coega-projek in die Oos-Kaap, die Kaapstad-stadion, die Nelson Mandela-brug in Johannesburg, die Gautrein en vele ander. Rapport is ook in besit van ’n beëdigde verklaring van kapt. James Hills van die Valke waarin hy sê daar is bewyse van misdadige optrede waarby die land se vyf voorste boumaatskappye – Murray & Roberts, Group Five, WBHO, ­Basil Read en Aveng – betrokke is. Maybe this time I can say "I told you so in several opportunities" These stupid fights, that we have between each other, gets sometimes led to draw attention away. The time is here where business and their political connections are drinking us dry and we let it happens.

      ettienne.pel - 2013-02-04 12:50

      @ Poloyatonki.......the end part of your username says it all....."tonki"....shame you are not bright today. Teddy has a valid point and perhaps the Gautrain should also be investigated....unless of course you know something we don't? Why so defensive about the Gautrain?

  • peasant.mcpoor - 2013-02-04 08:55

    A step in the right direction I suppose, highlighting construction fraud.happens on micro and macro levels.

  • Shades - 2013-02-04 09:11

    What's new, this shouldn't come as any surprise! So typical of the New (so called) Rainbow Nation ....... fraud, corruption, skulduggery, greed and screw its people. How proud and patriotic we should be to have government and municipal officials don't know the meaning of honesty and integrity. Useless, just use less!!

      louise.cook.127 - 2013-02-05 03:36

      This is PRIVATE SECTOR greed and corruption - not government or municipalities! Shows how crooked minds exist in ALL spheres of society and among ALL races.

  • terry.burne - 2013-02-04 09:12

    and I wouldn't mind betting the Crikey Moses stadium in Durban could also do with a bit of investigating!

      daniel.rossouw1 - 2013-02-04 11:17

      Recently moved out of Durban. Durban rate payers support the running costs of Moses Mabhida stadium, International Convention Centre and Ushaka Marine World. The marine world alone is R300mil a year. That's why rates in Durbs are soring.

      louise.cook.127 - 2013-02-05 03:39

      There's also major fraud and corruption with the stadium in Nelspruit but if I remember correctly it's tender kickbacks that involve government or municipal officials as well as private sector.

  • Poloyatonki - 2013-02-04 09:15

    Cape Town is a mess.

      lydonmcg - 2013-02-04 09:27

      You trolls don't even try to be fun anymore.

      francie.potgieter - 2013-02-04 09:30

      No it is not the only place that is is mess is all the anc run provinces. Especially Gauteng, that can't even fix a simple thing as a pothole.

      lukesureen.evans - 2013-02-04 09:37

      then leave

      ross.urquhart1 - 2013-02-04 09:44

      @Polo .... when last have you been to Cape Town, that is if you even know where it is .....????

      attie.gerber.1 - 2013-02-04 09:45

      so is the rest of south africa

      Sonnyjakes - 2013-02-04 09:54

      No your head (brain) is

      Poloyatonki - 2013-02-04 10:00

      lukesureen.evans leave to where???? I was born here in CT my family tree goes back to 1842, I dont have 2 passports like must you.

      pws69 - 2013-02-04 10:00

      So, the best run Metro in the country is a mess? I'm guessing that News24 doesn't allow adjectives that full describe how bad the ANC run metros are then.

      abdul.cassiem.9 - 2013-02-04 10:14

      Shame Polony didn't get his porridge this morning.

      Sonnyjakes - 2013-02-04 10:34

      Remember one thing Cape Town wanted to upgrade Athlone stadium but were basically forced by the LOC to go the Green point route. But alas with your limited brain capacity you would not understand.

      DuToitCoetzee - 2013-02-04 10:57

      Poloy read the full article on other places and you will realized how stupid your comment is.

      margaret.brand.12 - 2013-02-04 11:22

      Your brain is a mess. Think before you pass your silly remarks

      louise.cook.127 - 2013-02-05 03:42

      Actually since moving to CT from Gauteng a few years ago I can assure you CT is FAR BETTER run from a services and billing point of view than both Pretoria and Jhb! Systems here actually WORK!

  • timothy.tanzer.5 - 2013-02-04 09:37

    Cheers M&R

  • ross.urquhart1 - 2013-02-04 09:42

    and the taxpayers keep paying and paying and paying ...... :-(

  • pws69 - 2013-02-04 09:56

    From iol, 2 February 2011!!! Zille, who was Cape Town’s mayor when the contract for the stadium’s construction was awarded, said today: “The people who led the negotiations with the winning consortium were the best people we had, led by Mike Marsden. “Clearly if there is any suggestion of collusion, one wants to get to the bottom of it and get to the facts. In a situation of high demand, limited supply and great time pressure, it is particularly important to prevent collusion among major bidders - who should be competitors in order to ensure the best value for money,” Zille said. Marsden confirmed to the Cape Argus today that city authorities shared precisely the commission’s concerns, and had been working with it “for some years now”. “We were concerned about the escalation in prices. The original contracted price of the stadium was around R2,9bn, and the final completion price will be around R4,3bn. “We were also concerned about certain limited responses to tenders, and although we had no evidence, we had concerns. That remains the situation today - we have no evidence but we have concerns - and nationally there was allegedly a replication of this at other stadiums. “We have made submissions to the commission, but we have not received any formal response,” Marsden said. Two years worth of investigation, costing us millions. NO LENIENCY!

  • pws69 - 2013-02-04 10:08

    It is also worth noting that when this first broke in 2011, COSATU aqsked Zille to step down for the duration of the investigation. Funnily enough, when the investigation was expanded to include stadiums in ANC provinces, COSATU was mute about premiers stepping down. One rule for the ANC alliance and another for the rest of us? or is COSATU just being their usual dishonest selves?

  • nettie.potgieter.5 - 2013-02-04 10:10

    Some of the commentor were so zonked out during the weekend that they did not read the Sunday news papers. If you are not to babbals please go and read up and you will be suprised at the extend of the corruption al over the countre regarding the building industry.

  • Kay Carakas - 2013-02-05 02:37

    Fat cats in construction are bleeding us dry. Same as some officials in govt. Everyone grabbing whatever they can. Ultimately the poor suffer the most. We need a revolution by the people for the people. We refuse to accept a pittance while you conniving swines eat cake in your executive high rise towers. Cake bought with our money. Revolt people! Stand up and say enough.

      louise.cook.127 - 2013-02-05 03:49

      For sure! If these guys walk away with a slap-on-the-wrist fine the people should go after them - get the community in Khyalitsha to show us how. If the legal system doesn't deliver justice there's no other choice!

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