JOHANNESBURG, March (ANA)- The South African Local Government Association (Salga) president Parks Tau said they are in a process to discuss reparations for local government after some municipalities suffered a major loss during the 2010 World Cup.
He said that the companies that colluded in the procurement of 2010 World Cup infrastructure were fined R1.46 billion by the Competition Commission for anti-competitive conduct.
“The NEC has resolved to seek an urgent meeting with the Minister of Economic Development, Mr Ebrahim Patel, to discuss reparations for local government,” Tau said.
Tau could not give an exact amount of how much the municipalities lost but he explained that the loss was massive.
“We have also resolved to interact with all the municipalities that were affected to receive all the necessary reports of the work they have done regarding this matter.”
Tau said at the moment there is not clear plan on how to recoup losses from 2010 construction collusion but the matter is still subject to discussion with the Minister.
“Our approach as local government, we’ve been working with the national government to reach the agreement… We have agreed to follow upon together with National Executive Committee of Salga to engage with the ministers to how much will be going to the affected local authorities,” he said.
In terms of quantifying the damages, Tau said they will go through the agreement which was reached between companies and government.
“At this point we think it would be the most prudent thing to do, to go through the detail of the agreement so that we can quantify what we believe at least our municipalities are entitled to.”
– African News Agency (ANA)
