Transnet secretly sold prime Cape Town coastal land and a vast sea area when it offloaded the V&A Waterfront for R7-billion to investors from London and Dubai, the Sunday Times reported.
Now the parastatal is frantically lobbying MPs in a bid to block legislation that would make coastal land public property, the newspaper said.
The much-vaunted sale of Cape Town’s major tourist attraction in 2006 included the transfer to the new owners of 22km of coastline and 90 square kilometres of sea, stretching from Table Bay to Robben Island.
The new owners are Lexshell, which is owned by Istithmar PJSC, an investment arm of the Dubai government, United Kingdom investor London & Regional, and a local black economic empowerment group.
If the integrated coastal management Bill is approved, Transnet faces a potential R20-billion claim from Lexshell for failing to fulfil its contractual obligations.
Lexshell’s plans include a residential marina development (the Granger Bay Marina) to be developed on the western side of the Waterfront.
Transnet spokesperson John Dludlu said he could not comment on potential financial losses.
‘It is difficult to comment on the value of any potential claim against Transnet should it not be able to honour its contractual obligations,†he said.
‘However, it is most unlikely that any claim against Transnet would succeed if it is prevented by law from honouring its obligations in respect of reclamation.â€
He insisted that the parastatal had obtained approval to dispose of the Waterfront and was ‘not obliged†to disclose details of the sale agreement to anyone. – Sapa