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CDC says it is not part of bribes probe

08 February 2013
Lee-Anne Butler

THE Coega Development Corporation (CDC) yesterday distanced itself from alleged corruption which is the centre of a Hawks investigation into collusion in the construction industry.

Media reports named the "Coega development project" earlier this week as a project affected.

But yesterday CDC marketing and communications head Ayanda Vilakazi said: "The CDC would like to state in no uncertain terms that it does not tolerate any form of corrupt activities or fraud."

He said the organisation was committed to rooting out corruption and fraud.

Vilakazi said references to the "Coega development project" were ambiguous and implicated the organisation. It was not the target of the investigation, but the "victim" of alleged collusion.

The Hawks investigation and allegations were a point of concern to the CDC and would be considered. "To this end, should the investigation find any price collusion to the detriment of the Coega project, the CDC will act against those companies."

The statement follows reports in City Press that affidavits detailing a decades-long, formal kickback and price-fixing racket allegedly involving prominent top construction firms were being examined by the Hawks' serious economic offences investigators and the National Prosecuting Authority.

Vilakazi said: "The CDC developed and now operates the IDZ using its own internal processes; our tenders go through a rigorous process administered by an impartial tender committee and informed by the Preferential Procurement Policy Framework Act (PPPFA). No suppliers have successfully challenged the CDC for tender rigging or any other corrupt activities. Our processes are legitimate, transparent and follow strict procedures."



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