A proposed waterfront development in Durban’s run-down Point is being plagued by controversy, report Ann Eveleth and David
THREE of the world’s most colourful businessmen — Australian media mogul Kerry Packer, legendary British gambler John Aspinall, and Anglo-French “Marmite king” Jimmy “Goldenballs” Goldsmith — have been caught up in a furious investment squabble over Durban’s Point waterfront development.
The famous trio are crying foul after being beaten to the lucrative contract by a Malaysian company amid allegations of political manoeuvring and unfair tendering procedures.
The Waterfront fiasco is the first public involvement in South African business dealings by the three friends. Aspinall — who was also a bosom buddy of Lord Lucan, wanted in the United Kingdom on murder charges — has long been a fanatical admirer of Inkatha Freedom Party-aligned Zulus, boasting a friendship with IFP leader Mangosuthu
The zoo-keeper and former casino magnate nurtures romantic fantasies about the “warrior race”, founded in a childhood passion for the adventure stories of H Rider Haggard.
Jimmy Goldsmith, who was dubbed “Goldenballs” by Private Eye during a celebrated battle to shut down the satirical magazine through a succession of libel actions, is a reputed billionaire who once controlled the giant food corporation Cavenham Foods — manufacturers of Bovril and Marmite. Packer, an arch-rival of Rupert Murdoch, is renowned for his involvement in various controversial schemes to cash in on international cricket and rugby.
They have been beaten in their bid to get the Point project — a scheme to turn Durban’s dismal waterfront into a glamorous and highly profitable international tourist destination, tipped to rival Cape Town’s Victoria and Alfred Waterfront — by a Malaysian corporate giant, Renong. But as allegations of dirty play fly, it appears the fight may not be over.
In a new development in the controversy, the Mail & Guardian has established that Renong’s mysterious local “black empowerment” partner in the deal — Secprop 60 Investments — is led by a member of the planning company which recommended that Transnet, part-owners of the 55 hectare waterfront plot, sell to
The planning company, the Point Waterfront Company (PWC), was set up jointly by Transnet and the Durban City Council to facilitate planning and development of the waterfront and was asked to recommend to Transnet the best buyer for its portion of the land.
Arthur Nxumalo, one of 12 directors of the PWC, confirmed he is also the chairman of Secprop — a private unlisted company formed this year, whose first project will be the Point Waterfront Development — but denied a conflict of interest.
He said: “I recused myself from all the deliberations involved with the bid as I had a direct financial interest. I had nothing to do with the presentation by Renong/Secprop and was not even present at the meeting which dealt with it,” he said.
Critics of the deal say Nxumalo’s presence on the PWC could still have prejudiced the outcome, as Renong could have had access to important planning expertise available to the PWC. Nxumalo says he only joined the PWC in June — replacing IFP MP John Bhengu — “after all the planning had been done”.
Nxumalo said Secprop’s interim board included nine black entrepreneurs, but declined to comment further on the company, saying a press statement would be released soon. While Nxumalo said he had made his involvement with Secprop known to the PWC, PWC co-chairman and Transnet Property general manager Malcolm Mackintosh denied any knowledge of Secprop’s membership or history: “Renong hasn’t disclosed who Secprop is to Transnet,” he
Although several bids were tendered this month, the only ones seriously considered were those from:
l Renong/Secprop;
l A consortium including Aspinall and his friends, represented by a local development company called the Russell Marriet Boyd Trust.
l A Stocks and Stocks joint venture with another Malaysian company, Landmark Berhad
l The ANC-aligned Nkobi Holdings.
Opposing applicants were highly critical of the deal which, they said, followed a seven- day tender period that was too short for competitors to lodge their bids. Mackintosh said Transnet had decided that “Renong was the company to bid with, but we rejected their bid as being too low”.
He said Renong’s bid was “the highest offer” of the three, adding that Transnet is “negotiating with Renong because we believe it is the most competent entity to undertake the development of the entire precinct”.
While Mackintosh listed “black empowerment” as one of the criteria Transnet used to make its decision, he said he did not know who was involved in Secprop or if it had a track record: “They are the empowerment vehicle,” he
The row is the latest in a string of controversies which have plagued the development. An earlier “memorandum of understanding” between Transnet and Renong over the deal was scuppered by Public Enterprises Minister Stella Sigcau after a public outcry at the lack of open tender