14 September 2017

South Africa: Tshwane Turns to Court Over Multibillion Rand Broadband Deal

The City of Tshwane has approached the High Court in Pretoria to set aside a multibillion rand deal for broadband in the city, claiming the previous ANC-led administration entered into an unlawful contract.

Tshwane MMC for Corporate and Shared Services, Cllr Cilliers Brink announced on Wednesday that the city has asked for the assistance of the High Court to set aside Tshwane Broadband contract with Thobela Telecoms.

"In November last year the Auditor-General found the deal to be irregular, and determined its value at R2.736bn," said Tshwane Mayor spokesperson Samkelo Mgobozi in a statement.

He said the Auditor-General findings prompted Tshwane Mayor Solly Msimanga to investigate the procurement of the deal.

Mgobozi said it was important to distinguish this agreement from that between the City and Project Isizwe NPO for the provision of Tshwane Free Wi-fi, which the Msimanga administration is committed to putting on solid financial footing so that they continue to provide free Wi-fi to the residents of Tshwane.

"The Msimanga administration contends that the broadband contract and its procurement is riddled with irregularities and non-compliance committed by the previous administration."

Allegations include a violation of the Preferential Procurement Act and its Regulations as well as two vendors from the same holding company submitted bids and were not eliminated.

The contract which is set to run for 18 years comes at a cost of R2.736bn.

Source: News24

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