Saturday Star

Official suspended over illegal tender

- BALDWIN NDABA

A SENIOR Department of Economic Developmen­t official has been suspended over an alleged involvemen­t in the illegal issuing of a broadband tender worth R1.3 billion in 2015.

The City of Joburg has withheld the identity of the official, citing legal reasons.

Joburg mayor Her man Mashaba said the official was suspended pending a disciplina­ry hearing into allegation­s of misconduct relating to contracts and payments linked to the Johannesbu­rg Broadband Network Project made by the Metropolit­an Trading Company (MTC).

“The official has already been implicated in an independen­t forensic investigat­ion which recommends corrective action be taken,” said Mashaba.

“In addition, he is seen to be deliberate­ly frustratin­g an investigat­ion into the city’s seemingly inexplicab­le R1.3bn acquisitio­n of the 900km broadband network in 2015.”

The acquisitio­n was done through the MTC, a municipal-owned entity, which possessed no viable business plan nor had requisite capacity to run an operation of this size.

Mashaba said the official had refused to allow investigat­ors access to a number of devices believed to contain crucial informatio­n relating to the probe.

“The city has obtained a court order to create mirror images of the official’s devices to preserve all informatio­n on the devices to ensure that potential key evidence relating to this investigat­ion is not destroyed.”

The aim was to provide access to broadband services, which would improve the city’s service delivery and realise ICT cost-related savings, among other things. But Mashaba said “despite the astronomic­al cost, few of these benefits have been realised, necessitat­ing a thorough investigat­ion into the project”. The tender was awarded on December 19, 2008, to a consortium. On July 31, 2014, the council terminated the agreement to operate the network through the MTC.

“On commencing operations on September 30, 2015, the MTC ended the 2015/16 financial year with a R54m net loss. By February, MTC still continued to function with no viable business plan. In his most recent report, the auditor-general also found the performanc­e of MTC could not be assessed because of the lack of a viable business plan from the entity,” said Mashaba.

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