/ 30 July 2003

Legalities stall Cape Town’s film capital bid

As the date for the final announcement of the successful bidder to develop an internationally competitive film studio in Cape Town approaches, a possible legal challenge could halt the process.

”We remain fully supportive of the process to develop a film studio in Cape Town and remain confident that the situation will be resolved amicably,” JJ van Zyl, the corporate advisor to Cape Town Motion Picture Industries, said on Wednesday.

”However, we differ on procedural grounds with the provincial administration of the Western Cape and have referred the matter to our attorney to advise us and unfortunately can’t elaborate on it any further.”

Van Zyl confirmed that the bidder was a wholly-owned venture of the Western Cape MK Veteran’s Association, and that a lawyer’s letter had been forwarded to the provincial government.

Provincial finance member of the executive committee (MEC) Ebrahim Rasool said earlier on Wednesday at a media briefing announcing the shortlist of bidders, that the department had received a complaint and was getting legal advice. He said the venture chose not to make a presentation on Tuesday, claiming dissatisfaction with the process.

”[However] we feel confident the process can withstand the test of integrity and the allegations can be met. In the final instance we will be guided by [our] legal opinion,” he said.

Outlining the process to date, Rasool said it started in November 2002 and 11 proposals were received. These were whittled down on June 2 to six business plans detailing different development proposals for the envisaged studios. Since then these business plans had been rigourously assessed by a technical evaluation committee comprising the public sector.

”The committee scored each business against the nine criteria previously communicated to the private sector participants in this process. The criteria against which these assessments were measured included relevant experience, project management, site analysis and financial feasibility.”

The MEC said five consortia again made presentations on Tuesday, with the shortlisted three bidders being the Cape Town Motion Pictures Studios, to be situated on the Culemborg site and driven by Anton Nel; Dreamworld Film City, to be situated on the Farm Vergenoegd and driven by Anant Singh; and lastly iKapa Film City, to be situated in Capricorn Park, with a host of celebrities including Basetsane Khumalo.

Those that failed to make the shortlist included Cape Film and Tourism World, Cape Town Film City, and Cape Town Motion Picture Industries.

Rasool said that the evaluation committee would now look deeper into aspects of the three shortlisted bids, concentrating on financing structures, what type of studio model was proposed, the location, value for money test, and an empowerment test.

The evaluation process was intended to be finalised and the outcome announced by August 15.

Asked about the perceived race between Cape Town and Durban to become the country’s film capital, Rasool said there was a place for everybody to tap into the world film market.

”South Africa was 30% to 40% cheaper than other locations in Britain and North America. We are cheaper than even Australia and Ireland… and our assessment is that Cape Town has the advantage in South Africa, but is being held back because it lacks infrastructure like a studio.” – Sapa