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SKJ - Sekunjalo Investments Limited - Sekunjalo Consortium Media anouncement -

Release Date: 24/02/2012 07:05
Code(s): SKJ
Wrap Text

SKJ - Sekunjalo Investments Limited - Sekunjalo Consortium Media anouncement - 23 February 2012 Sekunjalo Investments Limited (Incorporated in the Republic of South Africa) Registration number 1996/006093/06 Share code: SKJ ISIN: ZAE000017893 ("Sekunjalo" or "the Company") SEKUNJALO CONSORTIUM MEDIA ANOUNCEMENT - 23 FEBRUARY 2012 Extract from Sekunjalo`s letter to the Department of Agriculture, Forestry and Fisheries: The award by the Department of Agriculture, Forestry and Fisheries of the tender to our consortium relating to the manning, operation and maintenance of the research and patrol vessels of the Department, is the subject of review proceedings brought by the current provider of these services. It is evident from the papers in those proceedings that the challenges to the award of the tender to our consortium all relate to the tendering processes and procedures followed by the Department. Our consortium, is regrettably the innocent third party in those proceedings. Notwithstanding this, however, our consortium, its participants and its executives have been subjected to a slanderous and misguided media attack, and we have remained silent in the face of such attack as the review proceedings are sub judice. At this juncture, we must point out that there can be no doubt that we followed the letter of the law and all due processes in the completion of our tender submission, and whilst we have decided not to oppose the aforementioned review proceedings on the basis that it relates essentially to a dispute between the Department and the current service provider, our decision is under no circumstances whatsoever to be construed as an acknowledgement or acceptance that the unfounded grounds of review raised in such proceedings are valid or correct. In this regard, we record that we reject any statements that have been made, or which may be made in the future, both by the media and other third parties, which attempt to convey views which are contrary to that which have been set out hereinabove. Given the aforegoing, our attorneys have addressed correspondence to the attorneys acting for the current service provider to advise that we will not be opposing the relief sought, on the basis of that which is set out above. Whatever the merits of the accusations and allegations against the Department in those proceedings, it is obvious to us that the current service provider has highlighted the completely inappropriate tender provisions in relation to an endeavour on the part of the Department to ensure that the tender would be awarded to the most empowered party, given the government`s BEE and transformation imperatives. It is apparent that the government`s transformation and empowerment programme will never be capable of achievement if its tender requirements focus on experience without any account being taken of the lack of transformation in this sector until now and the physical impossibility for any new empowerment venture, who, despite of being capable of acquiring the necessary skill set through employment of staff and acquisitions, are deprived of the opportunity to tender. In our case, it was made plain in our tender and indeed in all of the presentations made as part of the tender process that notwithstanding our exclusion from this industry in the past as part of our previously disadvantaged history, we could acquire the necessary skill set through the taking over of assets and employees, coupled with our commercial skills in operating some of the largest empowered companies in South Africa. You will certainly understand our unhappiness in participating in a tender process which, it is now revealed, only one party could ever have satisfied. The net result of the challenge to the grant of our contract is that the thirty SMME`s (primarily from the townships of the Western Cape) which would have played an integral role in the provision by us of the services under our proposed service level agreement, will now be deprived of the opportunity of job creation, enterprise and skills development, all of which are critical to the success of transforming our country from its previously disadvantaged history. The government will have to decide whether it wishes to transform the industry, and in particular its service providers, or not. If it wishes to retain the historical position then clearly it is manifestly unfair to continue to put out the same tenders, because in truth there is no competitive tender in process that can take place. The unintended consequence of an ill-thought through tendering process and framework is that mere lip service is paid to the statutory procurement framework under which government must operate. We leave this decision to government. However, what we cannot countenance is that the current situation is permitted to play out on an indefinite basis. What is required is for the current contract to run its course until 31 March 2012. A brand new tender process must commence forthwith. We will consider whether we participate in any such future tender process after considering the terms of the tender invitation, and in particular whether it is simply a repetition of the previous tender terms. We sincerely trust that the Department will be able to resolve the present impasse between itself and the current service provider and that henceforth any tender process which is initiated by the Department for the services in question, is one which will be open to all on an equal opportunity basis. Cape Town 24 February 2012 Sponsor PSG Capital Date: 24/02/2012 07:05:45 Supplied by www.sharenet.co.za Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.

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