Yorkcor considers action to block Komatiland sello
May 19, 2003
By Roy Cokayne
Pretoria - Yorkcor, the listed forestry products group, had no option but to consider legal action to stop the privatisation of the Komatiland forests "as being unlawful", its chairman, Solly Tucker, said on Friday.
This follows the announcement by the cabinet last week of the shortlisted bidders for the Komatiland forestry assets and a briefing note issued by the public enterprise department in February.
The original sale of the Komatiland forestry assets was awarded to Zama Resources. It was cancelled last year after allegations of irregularities.
Tucker said on Friday that Yorkcor, a prequalified bidder, had been excluded from the shortlist.
Bidders included in the shortlist are Paharpur, the Indian timber producer, Bonhuer Consortium, Pamodzi Consortium, Sappi Consortium, SFM/Londimvelo Consortium and Miri Consortium.
The Komatiland forestry assets include about 130 000 ha of plantations in Mpumalanga and Limpopo, two sawmills, a veneer slicing plant and tourism facilities.
Tucker said when the briefing note was issued that it disqualified from the Komatiland bid process any prequalified bidder with outstanding litigation or arbitration with Safcol, the forestry parastatal, or the water affairs and forestry department
.
Yorkcor was engaged in a series of litigation, as well as arbitration, with Safcol and the department. The cases had been set down for hearing over a long period and some would take time to resolve.
James Patterson, the director of forestry at the public enterprises department, said at the time there was nothing sinister in the briefing note and denied that it disqualified any prequalified bidder for the Komatiland forests.
Patterson said the briefing note was categoric and stated that if the chosen preferred bidder had outstanding litigation or arbitration with Safcol or the department, they would not continue negotiations until there was no litigation or arbitration "on the table".
Tucker said on Friday he had written to the public enterprises department on February 27 expressing the belief that the disqualification announcement was a breach of constitutional and other legal rights.
He said no response was received and the shortlist of preferred bidders was announced last week.
"The fact that the government is proceeding [with the Komatiland process] leaves Yorkcor with no option but to consider instituting legal proceedings to strike down the Komatiland process as being unlawful," he explained.
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