Press statement from Master Builders South Africa:

MBSA Concerned at Cancellation of Prison Contracts

Master Builders South Africa (MBSA) says in a press statement today (Nov 20) that it is seriously concerned regarding the manner in which the recent cancellation of the government’s Public Private Sector Partnerships (PPPs) for the design, construction and management of four proposed new prisons at the Paarl, East London, Nigel and Klerksdorp correctional facilities was handled.

MBSA, the national federation of Master Builders Associations, says the bidding process has cost the industry vast sums of money and resources in the preparation of bids in response to government’s call for participation in the PPPS. While accepting that Government - specifically the Department of Correctional Services - has the responsibility to fulfil its mandate, MBSA is calling for more insight into the decision.   

Danie Hattingh, MBSA President, says in the statement that MBSA is seeking an urgent meeting with government to obtain clarity as to exactly why the process was halted, as well as to establish what commitments or assurances government can provide to the building industry that future PPPs would not suffer the same fate. “The cancellation has been a major setback for our industry. Had the process been taken to its natural conclusion, thousands of additional jobs would have been created at a time when the industry urgently requires such new employment,” Hattingh states.

He adds that MBSA is concerned that the recent actions could lead to a lack of meaningful response from the industry for future projects of this nature on the grounds that the risk of non-recovery was simply too high.

“MBSA has pledged its support to Government’s planned infrastructure spend and is continually seeking ways to ensure that the industry can respond to the call in whatever format or model required. We need to see these capital projects come to fruition - both for the industry and the country as a whole,” Hattingh adds.

Issued for MBSA, Midrand / Further info: Pierre Fourie, tel 011 205 9000.