The Gauteng Department of Economic Development is warning developers of a 419-type fraud scam, which is soliciting funds for purported participation in the Lanseria Smart City project.
The department says it is aware of an “invitation to tender” that is circulating, soliciting advance funds from unsuspecting businesses for tender documents.
Announced by president Cyril Ramaphosa in 2019, the Lanseria Smart City will be driven by smart technologies, and will become home to between 350 000 to 500 000 people within the next decade, upon completion.
The multibillion-rand project, which is a huge opportunity for developers, will require extensive work and investments in energy systems, water systems, roads and digital networks.
As a result, the department is warning business of fraudsters who are using the attractiveness of the project to scam people.
“The Gauteng provincial government has become aware of an ‘invitation to tender’ in circulation, purporting to be issued in the name of Crosspoint Property Investments, soliciting bids from professionals and service providers for part of the build phase of the smart city,” reads the statement from the department.
“It also requires prospective bidders to pay R15 000 in advance for the supposed tender documents. We have confirmed with Crosspoint that this is a scam. The public is advised to ignore this 419-type fraud and not fall prey to the swindlers behind the scam.”
Led by MEC Parks Tau, the Gauteng Department of Economic Development says it has appointed the Development Bank of Southern Africa as the implementing agent for the Lanseria Smart City. It will be undertaking roadshows to introduce the project management team to developers once appointed.
The DBSA roadshows are expected to begin next month, according to the department, which adds that the project is a key public sector initiative.
Further, the department says it “is collaborating with the Government Technical Advisory Centre on a project development process to integrate various landholders who want to be part of the Lanseria Hi-Tech Special Economic Zone through a proposed real estate investment trust structure”.
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