Wednesday, 02 November 2016 00:17

Cape Town metro files claim over World Cup graft

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Country's biggest metros are mulling civil suits against construction companies accused of colluding during the construction of stadiums in the build-up to the 2010 World Cup.

 Soccer City under construction

The country’s biggest metros are mulling civil suits against construction companies accused of colluding during the construction of stadiums in the build-up to the 2010 World Cup.

While the Johannesburg and Tshwane metros are weighing their options on recouping the reported R11.2bn lost due to the collusion, the Cape Town metro has said it has instituted claims against the companies.

The Presidential Infrastructure Coordinating Commission has ruled the companies should raise a combined R1.5bn for a fund to advance transformation in the sector.

But none of the municipalities have been compensated for the money that they have lost from the implicated companies that include WBHO, Aveng Africa, Stefanutti, Murray & Roberts and Basil Read.

The stadiums that were built and renovated countrywide for the event are Moses Mabhida Stadium (Durban), Royal Bafokeng Stadium (Rustenburg), Loftus Versfeld Stadium (Pretoria), Mbombela Stadium (Nelspruit), Peter Mokaba Stadium (Polokwane), Nelson Mandela Bay Stadium (Port Elizabeth), Greenpoint Stadium (Cape Town), as well as Ellis Park and FNB Stadium (Johannesburg).

The City of Cape Town said it had approached the deputy judge president of the High Court in Pretoria and that the first court case to this effect would take place in December.

“We will fight for justice and the return of the R429m owed to our residents.… The City of Cape Town has instituted its claim,” the city said in a statement.

Johannesburg mayoral spokesman Tony Turisan said the city was reserving its rights on the matter. The city’s estimated losses due to the collusion was R300m-R900m, he said.

Nelson Mandela Bay chief of staff Kristoff Adelbert said it was difficult to say what the metro would do in the matter, as it was under a new administration.

source: Business Day

Last modified on Thursday, 14 September 2017 12:50

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Murray & Roberts is South Africa’s leading engineering and construction services company. It has delivered infrastructure throughout South and Southern Africa for more than 110 years and is today recognised as an international engineering and construction…