By Masood Boomgaard and Nathi Olifant
President Jacob Zuma's son, Edward, is part of a R400 million deal involving Pakistani businessmen to develop a massive "Car City" complex in Cato Ridge that is being encouraged by the eThekwini municipality.
The 80ha car storage facility alongside the N2 has the municipality's tacit blessing and is being spearheaded by Al Fallah Holdings, which cites Edward Zuma as a director.
Zuma confirmed he was the company director, but firmly denied he had been given any privileges he did not "sweat" for and insisted he did not "ride on (Zuma's) ticket".
The company has taken advantage of an initiative by the municipality to move hundreds of Eastern import car dealers, many of which are owned by Pakistani nationals, from the Point and the CBD.
According to documents in the Tribune's possession, the project is said to be in the final stages of planning. If given the green light by environmental assessors it could be up and running by the end of the year.
Thousands of Japanese imported cars are currently kept in bonded warehouses, parkades and other buildings in the greater Durban area where they await export to neighbouring countries.
The presence of import car dealers in the Durban CBD has always been controversial. The proposed project is aimed at curbing traffic congestion and exerting better revenue control over used vehicles brought into South Africa for export.
The cars are not allowed to be sold in South Africa and the SA Revenue Service is under pressure by local car manufacturers to subject the import car dealers to stringent checks.
When imported cars are offloaded in Durban, they remain in bonded warehouses. They may not be driven on South African roads and are meant to be loaded on to car carriers and transported to countries north of the border.
Car City will be a "dry port" which will consist of 1 500m2 secure showrooms built from prefabs, where buyers from outside South Africa will be able to view and buy cars.
About 300 car import dealers operate in Durban. According to a source close to the Car City project, about 80 percent of the dealers are willing to move to the new facility.
Al Falaah hopes to attract dealers with a low rental incentive. Dealers will apparently pay about a R25 000 monthly rental for storage and showrooms. Many are currently paying up to R400 000 a month for storage space in the CBD.
Car City will have on-site customs and excise offices, workshops, food vendors and a satellite police station. Developers hope that moving dealers to the facility will help reduce the number of robberies and thefts that characterise the import business.
"The dealers will be less vulnerable. They deal in dollars, so they're often targeted in the city," said a project insider.
"Car City will have tight security with on-site police, security personnel and watch towers."
Plans have also been put into place to build a clinic and 40-room hotel. Project sources said the development would create a few thousand jobs.
Not everyone is convinced, however. One Point landlord who lets space to imported car dealers. said: "They say 80 percent of the dealers are willing to move, but none of them really want to.
"Why would they want to move when moving to Cato Ridge will push their transport costs up?
"They want to be in the Point area and will pay high rent just so they can keep their transport costs down,"
"There will be a lot of dealers who will fight this. It seems to be very political and connected people seem to pulling strings to make sure everyone is out of the Point and is supporting Cato Ridge."
Nathi Ncube, one of the consultants from Acer Africa, employed by the developers to engage with the public on Car City's environmental impact assessment, said he had had diverse comments on the project.
"We have not submitted our report, but I can tell you there are some issues that need to be ironed out.
"These include imminent traffic congestion and narrow road access that cannot handle the increased volume of traffic by trucks.
"Another issue was agricultural land (in Cato Ridge)," said Ncube.
The Tribune has a letter from Victor Baloyi, the head of eThekwini Transport Authority, dated September last year.
"In it, Baloyi wrote to Mayor Obed Mlaba asking for his "urgent intervention" in reducing congestion associated with car carriers in the CBD.
"Any measures regarding the removing and relocating of these businesses away from the CBD will improve and minimise disruption in the flow of traffic."
Meanwhile, Edward Zuma confirmed he was an Al Fallah Holdings director.
"Yes, I'm a director of the company and, as a citizen, I have a right to get involved in business.
"I'm a young entrepreneur although I'm not a moneyed person. To me anything that creates jobs for our people, I get involved in."
Zuma said he was involved in "many" other ventures in the private sector because he was a "failed tenderpreneur" who did not get any government business.
"I got into this (Car City) because... it is a project that is clearing the city of congestion."
"I have a problem with people who assume that just because I'm the son of President Jacob Zuma, things come to me on a silver platter. The last time my father paid for anything for me was when I was at the University of Zululand. His name is not a title and does not entitle me to any benefits. I sweat for myself and can't expect anyone to fend for me. I tell you now, my father does not even know I'm part of this company, he will read it in the papers," he said.
"I just want to dispel any notions that I ride on my father's ticket. It disheartens me when people say Zuma's children are a burden on the state. It's quite embarrassing when you walk or drive around and people will say 'ah, there's the burden of the state'. I pay for my own air tickets and several of my siblings do that too."