A R7bn tender for the construction of a water plant in KZN is at the centre of a dispute between China State Construction Engineering Corporation SA (CSC) and parastatal uMngeni-uThukela Water (UUW) in the KZN High Court (Pietermaritzburg).

The case surfaced in February when the CSC brought its action against UUW.

In October 2024, CSC lost a bid to build the waterworks even though its joint venture with another Chinese-owned company, Base Major, was R1.8bn cheaper than the winning bid by SA’s Icon Construction, notes a detailed Daily Maverick commentary on the issue.

According to its website, CSC is the biggest construction company in the world, involved in projects in 100 countries.

In 2009, CSC was blacklisted by the World Bank for collusive practices in the Philippines. CSC SA is involved in a host of projects, including the construction of sections of the N3 between Durban and Pietermaritzburg.

In February, CSC brought an application in the High Court to interdict UUW from taking steps to award the waterworks tender.

CSC claimed that UUW irrationally and unreasonably regarded it as non-compliant based on a lack of technical experience and issues related to translating documents from Chinese, among others.

The February court action continued in March, when a consent order between the parties agreed that the tender would be put on hold, pending a final court determination at a later date.

In terms of the order, notes the DM, UUW had to provide a record of the tender decision, and deadlines were set for the submission of affidavits.

Later, in correspondence, lawyers argued about the disclosure of confidential price-sensitive information and AI-generated ‘case law’ that UUW reportedly relied on to make the tender award. Late last week, UUW applied to the court to rescind the March agreement because it alleged the court order was perpetuated by fraud.

UUW said Base Major did not support the legal proceedings. UUW is represented by Andile Khoza, a director at the law firm Strauss Daly, who said Base Major company bosses were intimidated into joining the court action and were threatened with death by CSC employees if they didn’t.

Advocate Jean Meiring for CSC said in court that the application was a perverse attempt to suppress egregious conduct at UUW, where the utility was playing fast and loose with state money.

Judge Sidwell Mngadi said the effect of the relief UUW sought was substantial – it would set aside the earlier March order.

He reserved judgment.

Full Daily Maverick report