Businessman may sue Fort Hare

Yako wants to know why he was overlooked in multimillion rand tender

JOHANNESBURG-BASED businessman Mazwi Yako is threatening to take the University of Fort Hare (UFH) to court after his company failed to secure a multimillion rand tender to build a student village at the Alice campus.

The Legacy Project to celebrate the university’s centenary in 2016 has already been delayed by six months and the latest action could see further delays.

The highly contested contract was awarded to Asag/Isondlo Joint Venture chaired by Prince Zolile Burns-Ncamashe, which bid R390-million.

The tender was for the construction of 17 new residential buildings able to accommodate 2046 students, a student centre and all relevant bulk services. It was advertised by the university in May last year.

Yako, who was born in Mthatha and owns Equicent Eastern Cape Developments, said he had on numerous occasions written to UFH vice-chancellor Dr Mvuyo Tom and the university’s council asking why his bid had been unsuccessful.

He said his company had initially been awarded the tender but had later lost it on review.

“We are struggling with getting documentation and a response from the university as to why we lost the bid,” said Yako, adding that Tom had not been forthcoming with responses.

“I have taken a firm decision to take this matter to court because I am struggling to get an alternative. It is within my legal right to be told where I erred in my bid so that I don’t make the same mistakes when tendering for other bids in the future.

“I honestly do not have a problem with losing,” said Yako.

The vice-chancellor yesterday confirmed receiving Yako’s correspondence saying: “We have received the bidder’s correspondences and have responded to them, the bidder is just not satisfied with the response.”

In previous interviews, Tom said the university had to consider costs when it awarded the tender.

Yako said he had discovered his company was initially considered for the contract through a third party. Tom however said the university had only awarded the contract once and that was to the Asag/Isondlo Joint Venture.

Burns-Ncamashe has in the past said the JV would fight any attempts to have the project delayed. He said the Alice community had already been denied R50-million input into the local economy due to the previous delays. The tender was only awarded in April this year instead of November last year as originally planned.

In the university’s request for proposal it was stated the successful developer would have to complete and hand over phase one – a building with 500 beds – in the first quarter of the 2014 academic year. Construction work has still not started. — zwangam@dispatch.co.za

subscribe

Would you like to comment on this article?
Register (it's quick and free) or sign in now.

Speech Bubbles

Please read our Comment Policy before commenting.