City heads to court over R2.7bn deal
THE city of Tshwane will approach the North Gauteng High Court to set aside the Tshwane broadband contract on the grounds that the previous administration entered into the deal.
The project was approved by the then ANC controlled city council in April last year despite concerns raised by both the Gauteng and national treasuries about, among other things, a flawed procurement process.
In November, the auditor-general (AG) found the deal to be irregular and determined its value at R2.736bn.
The AG’s finding prompted the new DA administration to investigate the procurement of the deal.
MMC for corporate and shared services, Cilliers Brink, yesterday said the new administration believed the broadband contract and its procurement was riddled with irregularities and non-compliance. “Tshwane broadband is the third in a list of major, multi-year contracts concluded by the previous city government, which the Msimanga administration seeks to set aside because we contend they are manifestly unlawful and preventing the city from discharging its mandate to provide better services to our residents,” he said.
He said among other irregularities were changes to bid specifications after bids had closed, violation of the Preferential Procurement Act and its regulations, two vendors from the same holding company submitted bids and were not eliminated, crucial adverse information about the proposed deal was withheld from councillors when they voted to approve it.
The deal binds the city to an 18-year contract with an ICT service provider.
Attempts to get comment from the Tshwane ANC were unsuccessful.
IN COURT: Tshwane wants its broadband contract set aside.