The Mercury

Empowermen­t in the mining sector is key – Gordhan

- Siphelele Dludla

THE SA NATIONAL Roads Agency (Sanral) does not have any objections to an independen­t inquiry into road constructi­on costs and would welcome the opportunit­y to participat­e in such an inquiry and state its case.

But Vusi Mona, the head of communicat­ions at Sanral, said such an inquiry should have a sufficient­ly wide mandate to also investigat­e the manipulati­on of figures by critics of the Gauteng Freeway Improvemen­t Project (GFIP) project, the credential­s and experience of “experts” and the role of pressure groups to disseminat­e “alternativ­e facts” to the media.

Sanral was responding to the deeper report into road constructi­on costs in South Africa released on Monday by the Organisati­on Undoing Tax Abuse (Outa).

Mona labelled Outa’s new report a “rehash” of the organisati­on’s earlier research report on the GFIP.

Wayne Duvenage, the chairperso­n of the organisati­on, said on Monday that even if Outa’s calculatio­ns were out by about 20 percent, the cost of the GFIP would have increased to about R12 billion compared to the excessive R18bn Sanral paid.

Duvenage added that if the GFIP had been built for about R10bn, the decision on electronic tolling could never have happened.

‘We remain of the view that the tender process was sound and there was no corruption’

However, Mona said Outa was again comparing projects that were incomparab­le and compounded this basic error by generalisi­ng about complex engineerin­g projects.

Mona stressed the premise that there was a single or specific unit cost for road constructi­on was a fiction, with the costs differing widely depending on a multitude of factors.

Outa benchmarke­d the cost of six projects in the overall GFIP project with other internatio­nal projects, including projects in Ethiopia, the US, Western Europe and Greece.

Duvenage said all of these project cost less on a cost-asquare-metre basis than the GFIP and every one of these projects was more complex and involved new roads compared to the GFIP.

Mona refuted Outa’s allegation­s it was not given access to the informatio­n they were seeking about the GFIP.

Sanral subscribed to the Promotion of Access to Informatio­n Act and through a letter had informed the organisati­on in July last year it would be given full access to this informatio­n but to date it had not taken up this offer, Mona said.

Collusion

He said Outa’s claim that Sanral had not done anything about the collusion by constructi­on companies was “patently false” because to the best knowledge of the agency it was the only government entity that had followed up this matter with both civil and criminal action.

“We remain of the view that the tender process was sound and there was no corruption from Sanral’s side – the tender process had integrity. We were the victims of a crime and therefore reported the matter to the SAPS, where a statement was made,” he said.

Mona stressed it was important for Sanral to move forward with road expansion in Gauteng to prevent debilitati­ng congestion in the near future. It wanted to engage with provincial and municipal infrastruc­ture and also with Outa and the Automobile Associatio­n. He said Sanral noted and welcomed Outa’s pronouncem­ent that it had “no desire to see the demise of Sanral”.

“The adversaria­l relationsh­ip that has to date existed does not help anyone. We would rather our relationsh­ip with Outa and other civil society organisati­ons were less adversaria­l and more about how to deliver road infrastruc­ture to South Africans,” he said.

Mona rejected the call for the scrapping of the e-toll scheme, stressing this would mean Sanral would not be able to meet its financial obligation­s and may be liquidated. FINANCE Minister Pravin Gordhan yesterday urged mining companies in Africa to empower the youth and reskill their workers to counter the adverse effects of technology, while ensuring that they mined commoditie­s sustainabl­y.

Gordhan said technology in mining, especially the advent and subsequent takeover by robots and artificial intelligen­ce, was threatenin­g to wipe out at least 5 million jobs in the industry in the next few years.

He urged miners to provide “responsive and responsibl­e leadership” in a bid to contribute to national developmen­t and ensure that they added value to their products.

Sustainabi­lity

“We are no longer in an environmen­t where we can extract and export. I would argue that what we require is a very different kind of paradigm for mining in the 21st century.

“Sustainabi­lity is as important as the bottom line for companies,” Gordhan said.

“There should also be a great deal of examinatio­n of opportunit­ies in Africa. This is the continent that is going to produce the new form of middle class.

“It is going to create a new centre of demand and future of global growth, very much like the kind of growth that China and India and others have created.”

Gordhan was speaking at law firm ENSAfrica’s VIP luncheon meeting with industry leaders on the sidelines of the 2017 Mining Indaba in Cape Town.

He said communitie­s were now aware that globalisat­ion had not benefited 99 percent of society, adding that a renewed social contract between the government, business, labour and society was needed to create “new forms of partnershi­ps” to benefit the majority.

Gordhan said it was concerning that there were miners who were still implicated in acts of illicit financial flows, base erosion and tax avoidance, saying that mining companies had a greater responsibi­lity to comply with government laws and regulation­s.

This is the continent that is going to produce the new form of middle class, centre of demand and future growth

He commended companies that were setting up empowermen­t funds to fill the junior-mining niche funding gap and opening up opportunit­ies for young entreprene­urs to emerge and to create jobs.

Gordhan assured investors that South Africa was a good investment destinatio­n with a robust economic system, saying that 90 percent of the government’s R2 trillion debt was in rand terms and only 10 percent in foreign currency. – ANA

 ??  ?? Outa spoke out on the excessive cost of road constructi­on in South Africa on Monday. Sanral yesterday said it would welcome the opportunit­y to participat­e in an official inquiry into the matter.
Outa spoke out on the excessive cost of road constructi­on in South Africa on Monday. Sanral yesterday said it would welcome the opportunit­y to participat­e in an official inquiry into the matter.

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