City vindicated by Public Protector's report on land acquisition process for expansion of CTICC

The City of Cape Town has noted the Public Protector's report into the acquisition of land for the much needed expansion of the Cape Town International Convention Centre (CTICC). The expansion of the Convention Centre is an integral part of the City's strategy to promote economic development, inclusion and job creation.

The Public Protector's findings are a clear vindication of the City's belief that the African National Congress's (ANC) complaint on this matter was vexatious and driven by petty politics.

Most importantly, the Public Protector found that the deal was in the best interests of the City, that the purchase price was reasonable and that there was no evidence of any individual improperly benefitting from the deal.

The key findings of the Public Protector are as follows:

• The purchase of the Naspers site was above board, and was generally of benefit to the public.
• Reports that the value of the property was no more than R50million were not substantiated by the evidence.
• No evidence could be found to indicate collusion between the City of Cape Town and Naspers with the aim of short-changing taxpayers.
• No evidence could be found of individuals improperly benefitting from this transaction.
• Officials failed to inform Council that the property would be subject to a height restriction.
• The City did not take charge of negotiations from the outset leading to the sale agreement.
• The Public Protector has directed that remedial action be taken.

With respect to the procedural shortcomings, the City will examine these in detail and respond once it has determined the action required.

The City would however note that while the initial negotiations with Naspers were conducted by Convenco, the relevant City officials, who have the oversight role over Convenco, were involved at that early stage.

It was only once the decision was taken that the City would purchase the land, rather than it be purchased by Convenco, that the City's Property Management Department was authorised to become involved in the process.  We will thus examine the Public Protectors findings in this light.

Statement issued by Alderman Ian Neilson, Executive Deputy Mayor of the City of Cape Town, December 5 2012

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