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ESR
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
contravention.
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.
Germiston
1 November 2011
Date: 01/11/2011 13:35:04 Produced by the JSE SENS Department.
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