/ 30 March 1998

Aventura bids submitted

MONDAY, 12.30PM:

FIVE consortiums have submitted binding bids for 100% of Aventura Resorts, the state-owned resorts company.

The bidders are Kopano ke Matla (the investment trust of the Congress of South African Trade Unions), Phalafala Leisure Consortium, Sanco Consortium, Boiketlong Consortium and Shomang Investment Holdings. The winner is expected to be announced soon after April 6.

Government needs to establish how bidders plan to resolve land claims on Aventura properties, which have hampered the privatisation process so far.

According to a Land Claims Court ruling, the Aventura sale cannnot happen unless discussions between bidders and communities are successful.

BUSINESS BRIEFS

NOKIA IN CELLULAR BID

FINNISH telecoms giant Nokia is negotiating with South Africa, Vula and Nextel to form a consortium bid for South Africa’s third cellular network licence. A feasability study is planned and Nokia says it is waiting on the South African Telecommunications Regulatory Authority for a firm decision on whether a third licence will be issued. A third cellular operator would challenge the MTN-Vodacom duopoly and allow them to fight for a share of an anticipated 3-million users by 2000.

SWAZI DAM CONTRACTS AWARDED

THE joint water commission for the transnational Maguga Dam project last week awarded contracts for advance infrastructure worth R25-million, according to the Swaziland government. The African Eye News Service reports that Grinaker Construction took the largest contract, for a R20-million bridge over the Komati River.

MONEY SUPPLY RATES WORSE THAN EXPECTED

HOPES that February money supply growth figures would turn out to be below 17% were disappointed on Monday with the Reserve Bank’s release of money supply and private credit extension data. The 12-month rate of growth of M3 money supply increased to 18.35%. In January it was 17.22%. High rates of expansion of money supply are associated with increasing inflation.

FRESH PRODUCE MARKETS PROBE

THE National Agricultural Marketing Council has set up a committee to probe South African fresh produce markets, after allegations of mismanagement and fraud at the Johannesburg market. The auditor-general is also investigating the market. The possible privatisation of the markets will also be investigated.

EQUITY BACK ON TABLE

THE final form of the Employment Equity Bill will be hammered out from Tuesday, when government, labour and business meet again in the National Economic Development and Labour Council. It is believed discussions will include the Congress of South African Trade Unions’ demand for a clause to narrow the wage gap, and the worries of small business.

ANGLO MERGER TERMS DECIDED

THE terms of the merger of Anglo American’s gold mines have been released. Eastvaal, Elandsrand and Western Deep Levels shareholders will receive more Anglogold shares, as changes in the share-exchange ratio have been made. Vaal Reefs, the listed vehicle for the merger, begins trading on the Johannesburg Stock Exchange on Monday. Anglogold and Gold Fields are still vying for control of Driefontein.

SIGCAU LETS DENEL MAN SLIP AWAY

PUBLIC Enterprises Minister Stella Sigcau has attempted to conceal the results of a forensic audit which could allow the state to reclaim a large portion of the R18-million “golden handshake” paid to former Denel boss Johan Alberts. The audit was commissioned last year. Alberts was allowed to take his package on condition that it be repaid if the audit uncovered any wrongdoing. Government sources say the audit uncovered enough evidence of fraud to warrant a deeper inquiry, but Sigcau has attempted to deny that the audit even took place.