The Democratic Alliance (DA) is concerned that the under-construction Mpumalanga International Fresh Produce Market (MIFPM) is about to be another cash-cow for the notorious provincial Tender Cartel.
We have learnt through the Mpumalanga Economic Growth Agency’s (MEGA) 3rd Quarter Report that the developer and landowner of the (MIFPM), will ultimately be responsible for rates and taxes on the property, as well as obligations flowing from the service level agreement entered with the Mbombela Local Municipality.
The DA’s concern is that the MIFPM will have the same outcome as the MEGA office block in Mbombela where they (MEGA) currently rent this office from the Tender Cartel for an exorbitant amount of R1 459 631, plus facilities management fee of R193 553 per month.
In 2022, the DA revealed that a Tender Cartel, has infiltrated Mpumalanga Government Infrastructure Projects, and not only do they get tenders to develop and construct, but now the tenders are stretched further into rental and facilities management services.
The Tender Cartel has grown further since 2022, with a new company Holdco (registration pending) which is comprised of Mire Beck, Crowie Developments, Brightwater Trade and Encha Properties, which according to the lease agreement for the MEGA buildings with Crowie Developments, Holdco will become the new registered owner of the MEGA building. All the above-mentioned companies are linked to Crowie, the owner of ENZA Construction, which is currently developing the MIFPM.
The DA thinks that his links to the Tender Cartel enable Crowie to negotiate similar agreements as with the MEGA building. Crowie’s links to all the above companies ensure that one of his several companies becomes either the rental agent or the service facility management. As per MEGA’s 3rd quarter report regarding the payment of rates and taxes.
This MIFPM project was originally a five-year project which was to boost the economy. But year in and year out the government uses this project as a carrot to lure Mpumalanga residents into believing that many job opportunities are just around the corner. However, this project has stretched over 11 years with no end in sight.
Today during a Legislature Sitting in Mbombela, the DA asked the MEC for Finance, Economic Development and Tourism, Busi Hlophe, the following questions:
- Who is the property developer of the MIFPM?
- Who is the landowner of the MIFPM?
- When will the MIFPM property be transferred and why?
- Are there any negotiations or agreements in place to enter into any facilities management services agreements for the MIFPM buildings? If yes, from when?
MEC Hlophe refused to answer any of the above questions. She said that she would answer in writing in 7 days.
The DA will do whatever it takes to ensure that this suspicious rental and facility management deal between the Mpumalanga Provincial Government and the Mpumalanga Tender Cartel is stopped before it takes place – as this means once again that the provincial government projects are held at ransom by the Tender Cartel at the expense of taxpayers. We will go as far as approaching the Public Protector to investigate this matter. The DA will also escalate this issue with our counterparts at the National Assembly to address it within Parliament and relevant Ministry.