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City continues to pursue compensation for stadium collusion<p>The City of Cape Town notes the media briefing held today by the Minister of Rural Development and Land Reform, Gugile Nkwinti; the Minister of Economic Development, Ebrahim Patel; the Minister of Public Works, Thulas Nxesi; and the Minister of Transport, Dipuo Peters, relating to the settlement agreement that the National Government signed with the seven construction companies who were involved in the building of the 2010 FIFA World Cup™ stadiums.</p><p>In October 2016 it was announced that the National Government had reached a settlement with these companies. The Presidential Infrastructure Coordinating Commission decided that these large companies would contribute to a R1,5 billion fund, called the Tirisano Fund, which is supposed to further transformation and social upliftment. This so-called agreement doesn’t include the money which is owed to municipalities. </p><p>These companies have thus far apparently contributed R117 million into the fund as part of this agreement. Minister Ebrahim Patel lauded this fund as a ‘ground-breaking model of transformation’ and a ‘momentous milestone’ of ‘radical economic transformation’.</p><p>We reject this settlement. In South Africa, a country where corruption is rife, the National Government is sending out the message that corruption by cartels is acceptable. </p><p>This violates the legal principle that we are all equal before the law. It is enabling construction companies to get away with serious corruption without any accountability. </p><p>The creation of this trust also meant that municipalities would not be compensated for collusion by those construction companies, except the City of Cape Town. </p><p>Essentially, the Tirisano Trust is an agreement between the National Government and the private sector that instead of compensating municipalities for the R112 billion loss that they incurred, a R1,5 billion trust would be set up to help the private sector diversify. It is a slush fund which is using ratepayers’ money to help the private sector diversify. Construction companies should be diversifying anyway.</p><p>We repeat that the National Government should be ashamed for misleading municipalities and that those municipalities who agreed to this arrangement have failed themselves and their residents. </p><p>This is another case of massive corruption going unaccounted for. There is simply no justice for the municipalities, and there won’t be, which is why the City of Cape Town decided to pursue this matter independently. </p><p>Our application to amend our particulars of claim was heard by the High Court of South Africa (Gauteng Division, Pretoria) on Friday 2 December 2016. The matter was heard and we have since been awaiting judgment.</p><p>We will continue to fight this matter in court in order to recover the R430 million owed to our residents. </p><p><br><strong>End</strong><br></p>2017-02-12T22:00:00ZGP0|#904f8ac3-ad18-4896-a9a8-86feb1d4a1b7;L0|#0904f8ac3-ad18-4896-a9a8-86feb1d4a1b7|Statements;GTSet|#62efe227-07aa-45e7-944c-ceebacca891dGP0|#de669d0f-b668-4ae7-92bb-b393edd91860;L0|#0de669d0f-b668-4ae7-92bb-b393edd91860|cape town stadium;GTSet|#2e3de6c1-9951-4747-8f53-470629a399bb;GP0|#c657da2f-0409-4638-9fce-412307dab5c7;L0|#0c657da2f-0409-4638-9fce-412307dab5c7|corruption1


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