Altron loses Tshwane broadband network contract

 ·17 Jul 2019

The Gauteng High Court in Pretoria has set aside the City of Tshwane’s Municipal Broadband Network Project contract which was awarded to Thobela Telecoms.

The matter relates to a dispute between Thobela Telecoms and the City of Tshwane over the City’s allegations that the tender award process was unlawful due to internal processes and procedures not being followed correctly.

Altron, whose subsidiary Altron Nexus is a shareholder in Thobela Telecoms, has expressed its disappointment with the ruling in a press statement.

“We are disappointed and are considering our legal options,” said Altron chief executive Mteto Nyati in a press statement.

“Once we have consulted Thobela Telecoms and project funders, we will consider our next steps and we are not ruling out an appeal of the judgement.”

Nyati added that the project has cost Altron between R40 million and R60 million, including infrastructure and equipment costs.

“Up to this point, the City of Tshwane has not paid a cent of taxpayers’ money towards the project as we are in the build phase which is being funded by our funders.” Nyati said.

Read: Altron profit soars on key contract wins

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