ANCWL warns Government over shady business dealings

By Drum Digital
21 October 2016

ANC Women’s League has cautioned Government that it should not set a precedent that companies found guilty of corrupt activities, can enter into agreements with government.

ANC Women’s League (ANCWL) has cautioned Government that it should not set a precedent that companies found guilty of corrupt activities, can enter into agreements with government and the directors who presided over those corrupt activities are not held liable for their actions.

This follows reports that government has entered into agreements with construction companies that participated in corrupt, collusive tendering of around R14 billion for the construction of 2010 World Cup stadiums.

The companies are Group Five, WBHO, Basil Read, Stefanutti Stocks, Aveng, Raubex, and Murray and Roberts

In a statement, the ANCWL reveals that government has entered into agreement with these companies that they will collectively contribute R1.5bn to a fund earmarked for socio-economic development over a 12-year period, to either introduce an equity model whereby at least 40% of the shares will be sold to black South Africans, or a partner model where each company will work with up to three black-owned construction partner companies to help them generate turnover equal to 25% of its own turnover.

Instead, the ANCWL says on the selling of 40% shares, government must determine the price value of shares to be sold so that these companies will not collude and sell the shares at exorbitant prices.

Furthermore, government must ensure that 50% of the 40% shares to be sold are ring-fenced for women. Government should also assist with resources for acquiring of the shares and enforce that this be implemented within five years.

The ANCWL is also calling on government to ensure that 50% of companies partnered with must be owned by women, also to be implemented within five years.

The call is that companies that fail to adhere to the agreement must be

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