State-owned freight logistics group Transnet is seeking legal advice over this weekend's article in the Sunday Times alleging that Transnet secretly sold coastal land and a vast sea area when it disposed of the V&A Waterfront, its chief said on Monday.

Speaking from Cape Town via a live video conference, Maria Ramos, the group's CEO, said the article "is false, misleading and irresponsible", and that the company had "taken early legal advice" about what she said was also "defamatory" reporting.

The Sunday Times reported over the weekend that disposal of the landmark V&A Waterfront included the transfer of 22 kilometres of coastline and 90 square kilometre of sea to foreigners to investors from Dubai and London.

The owner of the V&A is Lexshell, which is owned by Istithmar – an investment arm of the Dubai government - UK investor London & Regional, and a local black economic empowerment group.

"Transnet does not own the land"

"Transnet does not own the land in terms reported in the Sunday Times. If we don't own the land, we can't possibly sell it to anyone," said Ramos.

She added that the sea area earmarked for reclamation under the Governing Agreement – the agreement signed between Transnet and the three retirement funds in October 2001 relating to the restructuring the V&A Waterfront – was identified in the agreement and is restricted to the "sea areas immediately adjacent to the V&A Waterfront".

"These areas do not extend into Table Bay and do not extend to Robben Island, as suggested in the Sunday Times article," she said.

Ramos further denied as "fabrication and misrepresentation" that Transnet "faces a potential R20-billion claim from Lexshell for failing to honour its contractual obligations" due to the passing of the Integrated Coastal Management bill.

She said the sale agreements did not contain any warranties or undertakings in favour of Lexshell in relation to the reclamation of land, nor did it contain warranties or undertakings in relation to the anticipated development of the V&A Waterfront.

Transnet is stalling the passing of a bill

Transnet, according to the newspaper, is stalling the passing of the bill – which fundamentally makes coastal property a state-owned asset - so that its land could be excluded from the bill.

"Transnet has made it clear at all times that it supports the objects and purpose of the ICM bill and will at all times adhere to applicable environmental and town planning legislation," said Khomotso Phihlela, CE of Transnet's National Ports Authority.

He said Transnet has proposed certain amendments to the ICM bill which had been directed primarily at ensuring that the freight group was able to undertake "infastructural development of the ports for example extension of quay walls, dredging activities etc."

The proposed amendments to the bill were directed at ensuring that the group was able to comply with existing "contractual obligations in respect of reclamation of land from the sea areas immediately adjoining the V&A Waterfront".

I-Net Bridge