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In a written reply to a parliamentary question, the Minister of Trade and Industry, Rob Davies, stated unequivocally that there is no tenancy agreement between the Centurion Aerospace Village (CAV) and its so-called sole tenant, Aerosud.

This directly contradicts the DTI’s media statement on 17 September this year, in which the department claims that “[t]he CAV is fully operational [and] at present there is one tenant”.

The Minister’s reply further reveals that the CAV’s solitary building, constructed at a handsome R 21 585 535.79  back in 2011 and which is occupied by Aerosud, is not fit for occupation due to the absence of an occupancy certificate – which is required and issued by the City of Tshwane.

The reason offered by the Minister for why the occupancy certificate has not been issued once again contradicts the findings of the forensic report. While the Minister contends that the certificate was not awarded due to the termination of the bulk earthworks contract as a result of the forensic investigation, the very same forensic investigation found that this was due to non-payment of R14 million to the City of Tshwane by the CAV. The forensic report states:

“The reason for this is because the Bulk Service Contribution (for the whole of the Landside Phase 1) of the City of Tshwane (approximately R14 000 000.00) was not paid by CAV. They indicated that they did not have the funds to pay this amount.” (Page 102 of the forensic report)

The then-Gauteng MEC for Economic Development, Qedani Mahlangu, saw it fit to open this building in November 2011, despite the fact that it was constructed without the requisite legalities and under a cloud of irregular tender processes which saw 10 of the 11 bidders disqualified on grounds that will “not withstand scrutiny in a court of law”.  (page 192 of the forensic report)

Despite the above, Aerosud continues to occupy this building without a tenancy agreement and as a result, does not pay rent.

In a further skirting of the legal requirements, Aerosud has – and continues to – supply the building with electricity, water and sewerage services amid the CAV’s stalled earthworks fiasco. The DTI is fully aware of this fact as the forensic report points out the following:

“Aerosud’s occupation of the ITC2 building and the illegal electricity, water and sewerage connections to the (word redacted) facilities constitutes a criminal offence of section 27(2) and (3) of the Electricity Act 1987 (Act 41 of 1987) which places the dti, CAV and Aerosud at risk.” (Page 112 of the forensic report)

It is now abundantly clear that the CAV is not “fully operational” as the DTI contends, and does not have any “tenants”. Rather, the CAV’s sole building is leeching off its neighbour for basic services and for purposes which remain unclear.

On request by my colleague, Dean Macpherson MP, Parliament’s Portfolio Committee on Trade and Industry has resolved to call Minister Davies before it to come clean and account for the sorry state of this DTI initiative.

The truth is while the DTI continues to champion this R95 million flop as a success story, it is now testament to this government’s inability to foster economic development amid a national unemployment crisis.

Issued by DA