NATIONAL NEWS - The awarding of a multi-billion rand roads and bridge construction tender to Chinese companies was not well received by KZN business forum Amadelangokubona.
This after the board of the South African National Roads Agency (Sanral) decided to cancel five multi-billion rand contracts in June because of their management’s failure to adhere to a board resolution that sought to have all projects over R1b evaluated by a different set of consulting engineers to those that designed the tender.
Four tenders awarded to Asian companies
A statement to this effect was released on Sunday.
The Delangokubona Business Forum has warned that the government will have to bring the army to the project sites if the Asian companies deviate from the government regulations of a 30% stake for local contractors in every big project.
Warning from Amadelangokubona
The forum also warned that no foreign labour force would be allowed to ‘move in’ to project sites with the Chinese companies.
Forum national chairperson Thabani Mzulwini said the move to award the tenders to international companies was an act of undermining local companies.
“We have the capacity. Even now we are working on road upgrades and we are working with experienced companies even though they are white-owned but they comply with the regulations. We see the move by Sanral as a challenge that seeks to undermine local companies. It could only be a dream if these [Chinese] companies bring their own workforce. The government regulation of 30% stake for local companies will remain in place no matter what.”
He said there was no formal engagement between Sanral and the forum to address how the arrangement will work between the two parties.
He added that if the forum and the existing companies can build and upgrade existing roads, then there was no reason why the same should not be considered for the earmarked projects.
Among the cancelled tenders, which were later awarded last week, is the Mtentu Bridge on the Wild Coast.
The R4b project was awarded to China Communications Construction Company (CCCC).
Attempts to contact the company were unsuccessful. An e-mail sent was not responded to by the time of publication.
Other contracts that were cancelled were the N3 Ashburton R2.4b contract, R56 Matatiele contract worth R1.2b and the R5b N2/N3 EB Cloete project.
Sanral says Asian companies will have to obey SA’s labour laws
Sanral spokesperson Vusi Mona said it was disturbing and ‘interesting’ that people focus so much on the Chinese companies and not those local companies that they are partnering with.
“I don’t think that anybody would want to be seen as anti-Asians. South African companies apply for tenders all over the world. This is not the first time that international companies have done work here in South Africa. When German companies were appointed for the same projects there were no issues but now we have Chinese and there are these anti-Chinese sentiments. That cannot be right.”
Mona said if the Chinese bring ‘whoever they want to work with in the projects’, they will have to obey the country’s labour laws, and that it would be a matter for the labour department to deal with.
“We won’t tolerate being found to have connived in breaking the law because we are a state organ. The subcontracting requirement is still in the contract and there are also community development projects where locals will benefit.
“We have a wide range of stakeholders that we engage with to ensure that they know what’s happening in their own backyard.
“We inform them about projects and their modalities and prepare them for all the developments,” said Mona.
