Cape Town - An East London man who relocated his business to Beaufort West has accused Central Karoo district mayor Gayton McKenzie of allegedly promising him a tender he never received.
Businessman Shadreck Pita said he was motivated to do business in the town after McKenzie issued a call to investors to invest in Beaufort West.
“I left East London on May 4. I met the mayor for the first time. I told him I am in the textile business and interested in investing in the town.
He said the municipal workers do not have any PPEs, so if I came I will be given that tender to manufacture PPE locally,” he said.
Pita said he never signed any documents but took McKenzie’s word.
In June when part of the factory opened, McKenzie posted on social media that they had assisted Pita to open the factory for protective clothing for municipal workers.
He also posted that women between the ages of 50 and 60 will form part of the 100 workers at the factory.
“The mayor then went on to announce that the clothing factory will employ 100 people and the training will not be free; all of them will be paid a stipend.
“The stipends will be R1 500 per person. It was already on social media by then. Everyone in the country knew about it all of a sudden,” Pita said.
Pita said he paid the stipend at first and when he could not afford to pay the trainees at the end of August, he went to McKenzie for help.
Pita said he was told he would be given a loan which he would have to pay back, and he refused.
He said he was also told people would be roped in to partner with him, and they demanded a stake of the business.
“My question was, where is the tender that he promised us? He started to promise me tenders of 2023, which are not relevant now.
“If I knew this tender and contracts were for 2023 I would have never left East London. I am still very confused about the whole investment scheme.
“I have lost more than 700k in the space of three months. I feel scammed,” Pita said, adding he had to pack up operations and move to a private space.
McKenzie accused Pita of lying.
“He never paid his people R1 500... I had to pay the people’s salary because he refused to pay them.
“He spoke to people like they were nobodies. A new investor is now rehiring the people.
Any business person relocating his business on the promise of a tender is not a business person.
“I have never promised him a tender. Tenders get allocated through a vigorous system, they are not given out like sweets.
“He blatantly refused to pay people who worked for a month, these people are parents of children and breadwinners. He is a liar and a fraud,” he said.
Cape Times