Navy takes on the big guns over China in its dockyard
SOUTH Africa’s military brass has backed an R800-million plan to build ships with China in an upgraded naval dockyard in Simon’s Town, despite the navy requesting that the Chinese be kept out.
The project is being pushed by the council on defence on the eve of a long-awaited R10-billion navy procurement package, dubbed Project Biro and Hotel.
It involves reserving a large share of the construction work for state arms manufacturer Denel and its Chinese joint venture partner, which have earmarked Simon’s Town dockyard as a preferred construction site.
The Defence Department and Denel are tight-lipped, but several independent sources involved confirmed that:
Shipbuilding heavyweights Southern African Shipyards and Damen have been notified of preferred bidder status to build six patrol vessels and a hydrographic survey vessel, but have been told their involvement depends on including Denel and Chinese partner Poly Technologies;
The shipbuilders have been told the deal might be scrapped if they refuse to include Denel and Poly despite a work-share arrangement not being part of the tender — which would appear to be procedurally irregular;
The matter has prompted a standoff within the military, with the navy opposed and the chief of the defence force reportedly in favour. Urgent talks have failed to resolve the issue. Key stakeholders are due to meet on Tuesday; and
Although naval chiefs are keen on the vessels, they are opposed to Chinese involvement because the dockyard is used mostly for maintenance
Sources said no reason was given for the inclusion of Denel and Poly other than that the move would facilitate an investment in the dockyard.
“Armscor [the state arms procurement agency] has indicated that the inclusion of Denel/Poly is a voluntary process but if no agreement can be reached with Denel then the [Biro and Hotel] project will be cancelled,” said one source.
“The bidders are in discussion with Denel/Poly to see how they can include them.”
Meanwhile, Cape Town civic officials are flummoxed by the shipbuilding plan, claiming it would be opposed by residents of Simon’s Town, historically a tourist suburb near Cape Point.
In a statement issued during last year’s Africa Aerospace & Defence conference at Air Force Base Waterkloof, Denel said its memorandum of understanding with Poly Technologies involved “collaboration” in the maritime sector.
“The agreement will cover areas such as ship repairs, shipbuilding, naval systems and marine services,” Denel said.
According to the memo, Poly agreed to invest up to R800million in the dockyard if Denel secured a share of the deal.
Shipbuilding stakeholders questioned the rationale for building in Simon’s Town rather than established shipbuilding hubs in Saldanha, Durban, or Paarden Island, Cape Town.
Poly’s move forms part of Beijing’s efforts to extend its global footprint. It has proposed building a military base in Walvis Bay, Namibia.
Reports in 2008 linked Poly Technologies to a shipment of arms to Zimbabwe.
Biro and Hotel bidders declined to comment this week.
Neither Poly Technologies nor Denel responded to emailed questions.
Armscor, which issued the original tender, insisted the construction site of the vessels would be “determined by the successful bidders”.
Officials became suspicious because her papers said she was from the DRC but she could not speak any local languages.
“Shortly after the arrest I received a phone call from Mapisa-Nqakula, who wanted to know why Michelle wasn't on the flight. I explained she had been arrested.”
Ciza said he was also detained as an accomplice. The next day they were taken to the immigration office in Kinshasa, where they were officially arrested.
“The minister was calling all the time to check on us. She promised to call the DRC minister of defence. She said she was trying to handle the problem.”
Ciza said that on their ninth day in jail, they were taken to a hotel in Kinshasa where they met Mapisa-Nqakula.
“The minister and Michelle were hugging. The minister told us that she would sort everything. Later I was told that Michelle will go with the minister but I must remain behind for further investigation.”
After that, Mapisa-Nqakula refused to take his calls.
Ciza said he spent about another two weeks in jail and had to pay a $4 500 fine.
When he got back to Burundi, he said Nosithembele warned him “not to say anything about what happened in the DRC or I would be fired and taken to jail.”
Maswanganye could not be reached for comment. BATTLE STATIONS: Simon’s Town’s dockyard is the subject of dispute
It added: “Armscor is busy with a multi-source tender and will only disclose information once the procurement process is completed.”
An “official declaration” of the preferred bidder would be made before the end of the financial year.
David Erickson, chairman of the Simon’s Town Historical Society, said the proposed dockyard development had been reported to the South African Heritage Resources Agency. Parts of the dockyard date back to 1795.