Gauteng Premier Mbhazima Shilowa on Monday refuted a weekend media report that the Bombela consortium lobbied the provincial government to push up the cost of the Gautrain.
”I am sure by now most of you are aware of allegations by the Sunday Times that the Bombela consortium was responsible for pushing up the cost of the Gautrain,” said Shilowa in an speech to the legislature.
”I want to assure the house that those allegations are false and without substance.”
The paper reported that the provincial government deviated from normal tender procedures after the Bombela consortium threatened to pull out of the bidding.
The report said Bombela was incensed when it discovered the Gauteng government had set aside an amount much lower than the consortium’s price.
The cost of the Gautrain project escalated from R7-billion when the project was proposed in 2002 to R23-billion now.
Shilowa said this was not true and that normal tender procedures were followed during the bid.
”After receiving the bids from the two pre-qualified bidders in 2003, it became apparent that both bids [Gauliwe and Bombela] were too high and that the public sector comparator of the project was too low,” said Shilowa.
He said the Gautrain political committee was then approached by the Gautrain project team to approve a process with the two bidders for the project team to adjust its public sector comparator and to give the bidders a chance to submit a more affordable option.
In 2004 numerous discussions, workshops and meetings were held with the project team and the two bidders.
Consultants in Europe were also approached to assist with the calculations.
”It was obviously in the interests of both bidders to produce as much evidence and to put as much pressure on the province to convince it to increase their public sector comparator,” said Shilowa.
Both bidding consortia had to produce a bid that gave the best technical solution in terms of infrastructure and rolling stock, that had the soundest financial structure, that met or bettered the requirements for socio-economic development, that gave the lowest operating cost during the 15-year concession period, that presented
the province with the most favourable risk profile, and had the lowest overall cost.
Shilowa said there had always been allegations that the cost and timeframes were adjusted to meet Bombela’s demands.
”Both consortia made requests in this regard. To say it was done for Bombela would be wrong.
”If anyone has any information that suggests or proves that we violated tender or procurement procedures, they are free to provide that information to any public authority of their choice,” he said.
If that authority then decided that there should be an investigation, the Gauteng government would provide the necessary support.
”Because we know that we have done everything to adhere to the letter and spirit of the law,” Shilowa added.
However, the Democratic Alliance was not satisfied with the Shilowa’s assurance that the provincial government adhered to the normal procedures during the tender.
The party’s provincial spokesperson on transport James Swart said: ”It is not enough for premier Mbhazima Shilowa to tell us that the Gautrain tender process was above board”.
”We believe that the process must be seen to be above-board and thus the public requires more than the premier’s word based on what his officials have told him.”
The DA has requested an investigation into possible tender irregularities and attempts to improperly influence politicians, said Swart. – Sapa