Altron to appeal Tshwane contract loss

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Altron to appeal Tshwane contract loss

Published Date: 2019-09-20 | Source: Stephen Gunnion | Author: Stephen Gunnion

Altron to appeal Tshwane contract loss

The Gauteng High Court set the contract aside in July due to tender irregularities.

Altron says Thobela Telecoms has been granted leave to appeal a High Court judgement that set aside a multi-billion rand contract to roll out a fibre broadband network across Tshwane after the City claimed the tender award process was flawed.

Altron Nexus, a subsidiary of Altron, is a minority shareholder in Thobela Telecoms, the special purpose vehicle which was awarded the City of Tshwane's Municipal Broadband Network Project contract in 2016. It is involved as a primary network designer and architect for the project, supplying broadband equipment and related services.

In July, the Gauteng High Court in Pretoria set aside the award after the city, which had since fallen under the control of the DA, claimed the tender award process was unlawful due to internal processes and procedures that hadn't been correctly followed by the previous ANC-led administration. The project was later put on hold pending the outcome of the court case. Altron said no shortcomings were found in due diligence, which investigated the financial model for the product, the provided solution and government regulations.

At the time, Altron said its estimated exposure to the business was between R40 million and R60 million. This took into account provisions for infrastructure and equipment supplied so far. It said it hadn't yet received any funds from the City of Tshwane for the project as it was in the build phase.

The company's shares closed 4.2% higher at R25.





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