Cape Convention Centre's set to expand despite city's gripes

The expansion of the Cape Town International Convention Centre (CTICC) looks set to continue despite recommendations by the City of Cape Town in September that it cancel the controversial R700m architectural tender.

The expansion of the Cape Town International Convention Centre (CTICC) looks set to continue despite recommendations by the City of Cape Town in September that it cancel the controversial R700m architectural tender.

At a media briefing yesterday to announce the centre’s results for the 2012-13 financial year, outgoing chairman Ashley Seymour said there were no sufficient grounds to overturn the tender.

The company posted a net profit before tax of R27m for the 2012-13 financial year, the highest in the centre’s 10-year history. The centre also added R2.99bn to the national economy and more than R1bn to the Western Cape’s coffers.

In September, the city — which has a 51% stake in the centre — found that the awarding of the R700m tender was irregular. It gave the public protector a forensic report recommending that the company’s board bring disciplinary action against three of its staff involved in awarding the tender.

Mr Seymour said the convention centre’s board had thoroughly evaluated the findings and recommendations of the city’s investigation into the complaint over the tender.

“We concur with the city’s finding that there was no corruption or collusion by any staff member or individual involved in the tender process, or by any of the bidders. We furthermore agree with certain key findings of the city’s report in respect of flaws in the tender process. We have concluded, however, that there are not sufficient grounds to overturn the tender award,” Mr Seymour said.

“In reaching our conclusion we took into account the pertinent legal, financial and socioeconomic implications, the public interest and the legal advice we received. We are thus pleased to confirm the decision to proceed with the expansion and are delighted to announce that the expanded convention centre will be ready to trade in 2017,” he said.

The expansion project had been on hold while the city probed the procurement processes. Last year Cape Town architects Piet Bakker of Stauch Vorster Architects, Anya van der Merwe of Van der Merwe Miszewski Architects, and Mokena Makeka of Makeka Design Lab, won the multimillion-rand contract.

The centre’s CE Rashid Toefy said it generated revenue and other income of more than R158m in the 2012-13 fiscal year, from R140m the year before. “More importantly, the centre continued to make a valuable contribution to driving job creation and skills development in SA.” More than 7,500 direct and indirect jobs were created nationally, he said.