Cresta drops Phakalane deal
Friday, March 19, 2021
Off the table: The Phakalane Golf Estate Hotel is no longer part of Cresta plans PIC: PHAKALANEHOTEL.COM
In January, Cresta announced that it had signed a 10-year lease agreement for the hotel and the golf course, with an option to renew for further ten year periods.
In addition, Cresta had planned to pay Phakalane P10.7 million as a once-off for moveable assets which include furniture, fittings and equipment, with the amount payable over a 24-month period.
Whilst celebrating milestones in inclusivity, with notably P5 billion awarded to vulnerable groups, the report sounds a 'siren' on a dangerous and growing trend: the ballooning use of micro-procurement. That this method, designed for small-scale, efficient purchases, now accounts for a staggering 25% (P8 billion) of total procurement value is not a sign of agility, but a 'red flag'. The PPRA’s warning is unequivocal and must be...