Filcon: There is no scandal or corruption here

30 April 2014

Marius Fransman accuses the DA of a "construction scandal" because he's trying to distract attention from his scandalous friendship with the ANC gangster, Mark Lifman and his own refusal to respond to allegations of corruption and maladministration in the Auditor General's report. He even walked out of SCOPA to avoid answering on this.

The DA-led Western Cape Government has nothing to hide. We welcome any investigation into the tender allocation process as there was no corruption, unlike mr. Fransman, who continues to duck and dive from the ghosts of his corruption riddled past in government.

This is simply the case of a reputable contractor running into cash flow problems, affecting a wide range of clients of which the Western Cape Provincial Department of public works is only one. In fact, a number of institutions in the private sector have contracts to the value of nearly R900 million with Filcon. 

The awarding of the tender to Filcon was subjected to the necessary scrutiny checks as required by the law. These include compulsory registration on the Western Cape Supplier database, a compliance check, a check for poor performance, a SARS check and a due diligence and risk assessment.

Fransman's claims of a R400 million contracts with the Western Cape Government are bogus. The truth is that R35.2 million was paid to Filcon by the Department of Public Works and millions was held back as soon as the company's cash flow problems started. In addition, the department holds substantial guarantees from independent guarantors in respect of these contracts and is therefore unlikely to lose any money whatsoever on this contract.

The tender adjudication process in the Western Cape is fair and free from undue influence and corruption. When construction projects are adversely affected by poor performance from contractors, we apply all reasonable measures to ensure that the situation is speedily remedied and work is then delivered, and at the necessary and requisite standards.

With only days before the election, the ANC will do anything in his power to divert attention from his own poor performance in this province and from the DA's successes. This latest stunt is extremely transparent and desperate. The voters will not be fooled.

Statement issued by Ivan Meyer: DA Western Cape Leader, May 1 2014

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