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Corporate & Commercial Law News South Africa

Smit Amandla challenges R800m contract award in court

According to Business Report, Smit Amandla, the local black empowered subsidiary of the Dutch-based multinational ship managing group Smit, questions in new documents before court the Sekunjalo Consortium's ability to carry out the lucrative task of policing South Africa's marine resources on the grounds that it represents a conflict of interest.

In addition, the documents say that the bid-scoring procedure by an evaluation committee was dodgy. Sekunjalo is poised to take over the R800 million, over five years, contract from April 1.

In supplementary affidavits to the Western Cape High Court, Smit Amandla Marine alleges that Sekunjalo - a prominent black empowerment company headed by businessman Iqbal Surve - aims to poach its staff to run eight research and patrol vessels, including the Sarah Baartman, the Victoria Mkhize, the Lilian Ngoyi and the Ruth First. Smit Amandla argues further that Sekunjalo cannot act as a policing agent of fishing resources while also having a subsidiary company, Premier Fishing - which was also a bidder - involved in the fishing industry.

Having studied the taped records of the bid evaluation committee, Smit Amandla believes that the committee did not apply its mind adequately to the six bids. It alleges that the scoring procedures were also deeply flawed. Business Report says that Smit Amandla had operated the tender to manage and maintain marine research and fisheries patrol vessels for the past 10 years. In November it lost a bid to operate the tender for a further five years. It then sought an interdict in December against the Department of Agriculture, Forestry and Fisheries seeking to stop it from awarding the tender to Sekunjalo. The department, however, say that in terms of the law it could not extend the contract beyond two terms and was therefore obliged to put the contract out to tender.

Read the full article on www.iol.co.za.

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