Go Back Email this Link to a friend

ESR - Esorfranki Limited - Press release

Release Date: 01/11/2011 13:35:05      Code(s): ESR
ESR - Esorfranki Limited - Press release                                        
ESORFRANKI LIMITED                                                              
(Incorporated in the Republic of South Africa)                                  
(Registration number: 1994/000732/06)                                           
JSE code: ESR                                                                   
ISIN: ZAE000133369                                                              
("Esorfranki" or "the group")                                                   
PRESS RELEASE                                                                   
Further to previous announcements and press coverage in respect of the          
contested award to Esorfranki Pipelines (Pty) Limited (a division of            
Esorfranki) in joint venture with Cycad Pipelines (Pty) Limited ("the           
joint venture") of the Western Aqueduct project by e-Thekwini                   
Municipality following an open tender process ("the contract"),                 
Esorfranki wishes to clarify the impact for the group of the wording of         
the Honourable Madam Justice D Pillay`s judgment handed down on 25              
October 2011 ("the judgment"), with specific reference to the                   
possibility of "corruption" in the tender process:                              
Two applications were made in the KwaZulu-Natal High Court ("the                
Court") by two alternative tender participants, citing e-Thekwini               
Municipality as the first respondent, for the setting aside of the              
contract.  It was common cause between all parties that the tender              
notice issued by the e-Thekwini Municipality conflicted with section            
2(1)(b) of the Preferential Procurement Policy Framework Act, Act 5 of          
2000.  The Court found that this non-compliance of the original tender          
notice was fundamental and could not be cured.  The Court therefore             
made an order that the contract be set aside on the basis of this legal         
In the judgment reference was made in passing to the possibility that           
"corruption" in the tender process could not be ruled out.  Esorfranki          
is gravely concerned at the potential implication for the group and             
stresses that the remarks made by the Court in the judgment relating to         
"corruption" have no bearing on the conduct of the joint venture and            
the joint venture accordingly distances itself from these remarks.              
Guided by independent legal opinion, Esorfranki confirms that no                
allegation was made in any of the applicants` papers in this regard,            
the applicants` case was not premised on any suggestion of "corruption"         
and the question of "corruption" was not raised in argument by the              
applicants` counsel or by the Court in hearing this argument.  The              
first respondent, together with Esorfranki Pipelines and Cycad                  
Pipelines, has applied for leave to appeal against the whole of the             
judgment and order for costs.                                                   
1 November 2011                                                                 
Date: 01/11/2011 13:35:04 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.                                          

Email this JSE Sens Item to a Friend.

Send e-mail to
© 2020 SHARENET (PTY) Ltd, Cape Town, South Africa
Home     Terms & conditions    Privacy Policy
    Security Notice    Contact Details
Market Statistics are calculated by Sharenet and are therefore not the official JSE Market Statistics. The calculation/derivation may include underlying JSE data.