City of Tshwane in court

BROADBAND TENDER: ‘RIDDLED WITH IRREGULARITIES, NON-COMPLIANCE’

Tshwane Broadband’s the third in a list of major contracts concluded by the previous city government, which this administration seeks to set aside.

The City of Tshwane’s launched a review application in the High Court in Pretoria to have a multibillion-rand contract for broadband network construction set aside, saying the deal was awarded irregularly.

The contract with Thobela Telecoms was awarded by the previous ANC administration.

“In November last year, the auditor-general (AG) found the deal to be irregular, and determined its value at R2.7 billion (before VAT),” said Tshwane MMC Cilliers Brink. The city believes the contract and its procurement are “riddled with irregularities and non-compliance”.

Among other things, it alleges changes were made to bid specifications after bids had closed and there were violations of the Preferential Procurement Act and associated regulations. It said two vendors from the same holding company submitted bids that weren’t eliminated during the selection process.

In addition, crucial adverse information about the proposed deal was withheld from councillors when they approved it and there was non-compliance with the Municipal Financial Management Act, the city alleged. “The Tshwane broadband deal binds the city in an 18-year relationship with an ICT service provider to build a broadband network, which would later become a commercial outfit … An assessment of the deal’s terms and conditions confirm that it exposes the city to severe, one-sided liability and does not offer value for ratepayers’ money,” Brink said.

The Tshwane metro council voted in favour of the project in April 2016. “... Based on cop- ies of correspondence obtained, the council was not properly informed or did not properly consider the objections or concerns raised by the National Treasury, the Gauteng Provincial Treasury and the Department of Telecoms and Postal Services.”

“What we have discovered, and will now present to court, are serious irregularities which we believe taint the legality of the broadband deal,” Brink said, adding they believe crucial information was withheld from councillors voting in April 2016.

“Tshwane Broadband is the third in a list of major, multi-year contracts concluded by the previous city government, which the [Solly] Msimanga administration seeks to set aside, because we contend they are manifestly unlawful — and prevent the city from discharging its mandate to provide better services to residents,” he said.

It does not offer value for ratepayers’ money