A government agency is coughing up millions of rands in a buy-back deal that will enrich a Durban tender tycoon for the second time in three years.
And despite his questionable track record – which includes sinking the city’s bus service – businessman Jay Singh has been given a R70-million contract for the first phase of Cornubia, a R20-billion housing project near Umhlanga.
Singh’s deals with the eThekwini municipality have been red-flagged by auditors since 2010. Last week two of his housing contracts were panned by auditing firm Manase and Associates in a report on the city’s procurement practices.
Now a Port Elizabeth company, SL Management Consultants, is assessing four Singh developments that the Social Housing Regulatory Authority (SHRA), a division of the Human Settlements Department, wants to buy.
SHRA investment manager Mandla Nkuhlu confirmed the authority was considering buying the developments, which comprise almost 1000 units.
Three years ago Singh made a profitable deal when the city’s bus service, run by him and his company Remant Alton, collapsed.
The municipality bought it from Singh for R405-million – after selling it to him for R70-million in 2003.
Council documents, company records and title deeds gathered by the Sunday Times show how Singh:
Sidelined his empowerment partner Dr Nomalady Ngwadla, who accused him of using her as a “front”;
Made a fortune off cheap landfill sites awarded to Ngwadla’s company;
Gained control of their joint venture, Woodglaze Trading, after Ngwadla was delisted as a director without her knowledge; and,
Sold two landfill sites for an R8-million profit and allegedly in contravention of council regulations.
Since last year the municipality and Singh have refused to answer questions. This week questions again went unanswered.
A politically connected individual, Singh has built a business empire using a network of companies owned by family.
His main line of work has been constructing thousands of homes for the poor in Phoenix to the north of Durban on council landfill sites.
But claims of bad workmanship continue to haunt him. The SHRA want to take some of the homes off his hands and manage them, “[but] before we go through with the transaction we need to know what we’re buying”, said Nkuhlu.
Meanwhile, Ngwadla is pressing for a settlement.
Council documents show that the hundreds of landfill sites which have made Singh rich were originally awarded in 2004 to Ngwadla for development.
To help carry out this work, the city’s housing chief, Cogi Pather, introduced her to Singh. In September 2004 they registered Woodglaze. But Ngwadla was removed as a director the day after the company was registered.
Three years later she officially resigned.
“I have just about had enough of being a front,” she wrote in her resignation letter.
Lawyers’ letters reveal Singh promised her an equal share of the Woodglaze profits, money Ngwadla insists she is still fighting for.
She declined to comment this week.
Article source: http://www.timeslive.co.za/local/2012/02/19/tender-tycoon-bailed-out-again
