The dti stands firm on Aerosud

The Department of Trade and Industry (dti) yesterday remained steadfast in its claim that Aerosud occupied a building in the Centurion Aerospace Village (CAV) despite the chairman of the privately owned aircraft components and aero structure producer denying it was a tenant in the village. The dti released a photograph of a building allegedly leased by Aerosud together with a statement to prove its claim. The statement said: “While Aerosud does have other land and buildings adjacent to the land and building belonging to government, it occupies the main CAV building and has a lessor/lessee relationship with the CAV. “Certain formalities related to the head lease agreement between the CAV, the dti, the Department of Public Works and the City of Tshwane, which were put on hold during the audit process, are being finalised to enable rental payment,” it said.

Business Report asked Aerosud chairman Paul Potgieter last week to comment on whether Aerosud owned the land and buildings in Centurion from which the company operated, or if the land and buildings were leased and Aerosud Holdings was a tenant of the CAV. In an emailed response, Potgieter said: “Aerosud owns the land that we are now located on, but given our anticipated growth, we have always been interested in also renting additional land/buildings from the CAV. Aerosud has thus always been a prospective tenant.” Potgieter added that Aerosud had been associated as “a potential anchor tenant with the CAV since its inception around 2005” and had been actively supporting the establishment of an aerospace industrial cluster. “This would not only have offered Aerosud itself the additional space for growth beyond the capacity of its own premises (adjacent to the CAV), but would more importantly have created a platform for the establishment and/or relocation of the Aerosud suppliers,” he said.

The department said: “It is a fact that the bulk earthworks at the CAV were stopped. This arose because some existing and incomplete contracts were terminated as a result of the forensic audit. “All the recommendations of the audit have either been completed or are in the process of being completed,” it said. Allegations of fraud, corruption and reckless tender appointments surfaced about the CAV in a dti mandated forensic report into the project, which was released last week by the DA. Among the findings of the forensic report were an irregular tender appointment worth R65 million for bulk earthworks and infrastructure. In addition, the forensic investigation could not locate approval by the CAV’s board, executive committee or management for the appointment of five service providers for contracts valued at R84.9m. However, the dti stressed on Friday that R94m was transferred to the CAV, of which R67m had been used for bulk infrastructure and “the construction of buildings”. The dti also claimed the DA allegations were “baseless” and the CAV was “fully operational”.