Minister must explain dodgy Alexkor asbestos tender

10 April 2022

Note to Editors: Please find attached soundbites by Ghaleb Cachalia MP and Veronica Van Dyk MP

The DA has written to the Minister for Public Enterprises, Pravin Gordhan, regarding an asbestos removal contract in Alexander Bay and the Alexkor Richtersveld Mining Company Pooling and Sharing Joint Venture (PSJV) mining area, awarded to Babusisekile Business Enterprise CC in 2017 worth R51 million.

There seems to be a number of irregularities regarding the awarding and execution of the contract.

While the original service level agreement (SLA) was for three years, the project to remove asbestos and demolish old buildings and structures was reportedly concluded in October 2018 – only 16 months into the contract. However, the DA has seen communications and complaints to Alexkor that a large number of the sites that form part of the contract has yet to be serviced. The asbestos poses a severe health risk for the community.

In 2018, the contract’s scope also seems to have been increased with almost R7 million in contravention to National Treasury Instruction Note 3 of 2017/18. In 2019 a further R14 million was allocated towards asbestos removal.

Serious questions regarding the execution of the contract, as well as the inspection and sign off from the Department of Public Enterprises must be answered. Years after the contract was reported as closed and millions of rands later, many of the offending and dangerous structures have still not been removed.

Alexkor was meant to be joint venture between government and the Richtersveld community after their years of fighting for land restitution and land-based mining rights. To date, the community has benefited very little from this venture, while having to endure the callous destruction of their environment and livelihoods. This cannot continue. Minister Gordhan must intervene and hold Alexkor to account.

Issued by Ghaleb Cachalia, DA Shadow Minister of Public Enterprises, 10 April 2022