LOUIS TRICHARDT – The local taxpayers and the business fraternity have been left in the dark about a high level deal concluded on their behalf by the Makhado Municipality with a city government in China.

A scheme to involve Communist China in a major local construction project, which will land a lucrative deal for a person with the same surname as the local mayor, is still shrouded in a veil of secrecy.

The deal has been sneaked through the local ANC dominated municipal council and has for the past week been scrutinised by provincial role players and by representatives of the Department of Foreign Affairs.

Senior representatives of the Makhado Municipality refused to allow the local media insight into the agreement, which was rushed through the council meeting of August 6. Although the agreement was officially tabled during that meeting, its contents were not included in the official agenda handed to the media.

It appeared on the agenda as Item A. 200 "Organisations and Associations: Twinning Agreement: Makhado Municipality and Dandong Municipal Government, China". The resolution adopted without debate, simply stated: "That the proposed twinning agreement with the DanDong Municipal Government, China be perused and if accepted, a suitable date and venue be determined for the signing of the agreement by the respective signatories, with due allowance for the necessary funding for such purpose."

When Council was formally requested to supply a copy of the agreement to the local media, it at first agreed to do so, but failed to deliver the document on the appointed time. When put under pressure, the council eventually produced a copy of the initial "Letter of Intent," which envisaged "broad co-operation and exchange on the field of culture and education, trade, infrastructure, science and technology, hygiene and environmental protection."

The contents of the twinning agreement, however, remain shrouded in secrecy, but it is apparent that it includes a major construction contract.

The proposed contract is to be part and parcel of the so-called " Twinning Agreement" between the local Makhado Municipality and the Chinese Dandong City, with a population in excess of six million people. The agreement will involve, amongst others, a "cultural and educational exchange" agreement between the Makhado Municipality on behalf of its taxpayers, with a country, which has a precarious international human rights reputation.

During the recent second visit of a local municipal delegation to Communist China, the Vice Mayor of Dandong City indicated that such a twinning agreement would be "essential for future economic, cultural, and other areas of co-operation." Both parties, before the return of the Makhado Municipal delegation to South Africa, signed a letter of intent.

A letter of intent on the construction of the proposed Makhado Industrial Park (named in the letter as the "Tlakusani-Sweet Industrial Garden") was also signed by "Tlakusani Joint Venture" of South Africa and by the Fourth Construction Engineering Company of Dandong Liaoning Province of China – a partly government owned undertaking. The composition and/or ownership of "Tlakusani Joint Venture" are not yet clear. A certain Tlakula signed a document, which purports to be a letter of intent between the two construction concerns, on behalf of Tlakusani.

Several questions, however, arose regarding who this Tlakula is and whether he is any relative of the mayor of the Makhado Municipality, Cllr Brighton Tlakula. It is also not known how and when Tlakusani became involved and upon what basis. It is also not known how this "joint venture" was formed and on whose request or initiative?

The Makhado municipality will, according to this agreement be responsible for the preliminary work before construction (electricity, drainage system and road building). The Chinese construction company would be responsible for the construction of all the buildings, which will include 27 factory units. Dandong Pharmaceutical Factory who showed a keen interest to set up a factory in the proposed industrial park for the manufacturing of medicine "and other pharmaceutical products" also signed the letter of intent.

According to the report of the Municipal Manager after the latest trip to China, other parties interested in taking up space in the proposed industrial park include clothing manufacturers, a foundry that manufactures engine parts, a bus manufacturer and a manufacturer of other industrial vehicles.

The proposed construction deal may involve a major influx of Chinese citizens into the Louis Trichardt area of the Makhado Municipality.

In the letter of intent, signed in China, the representatives of the Makhado Municipality referred to the town of Louis Trichardt as "Makhado City."