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    Home » News » Altron mulling ‘legal options’ after losing Tshwane broadband contract

    Altron mulling ‘legal options’ after losing Tshwane broadband contract

    By Staff Reporter17 July 2019
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    Altron CEO Mteto Nyati

    Altron is considering its legal options after the high court in Pretoria set aside the City of Tshwane’s municipal broadband network project contract.

    The contract was originally awarded to Thobela Telecoms — a special purpose vehicle in which Altron Nexus was a minority shareholder. Nexus was involved as a network architect and supplier of broadband equipment and related services.

    In a statement, Altron CEO Mteto Nyati said: “We are disappointed and are considering our legal options. 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 judgment.”

    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 judgment

    Nyati said Altron’s exposure to the business is between R40-million and R60-million. “This considers our claims against Thobela Telecoms for infrastructure and equipment supplied so far. Up to this point, the City of Tshwane has not paid a cent of taxpayers’ money toward the project as we are in the build phase, which is being funded by our funders.”

    Altron said the matter relates to a dispute between Thobela Telecoms and the city over the city’s allegations that the tender award process was unlawful due to internal processes and procedures at the metro not being correctly followed. The project was later put on hold by the city pending the outcome of the court case.

    “The financial model, provided solution and government regulations were investigated following the awarding of the contract, with the due diligence finding no shortcomings,” Altron said in the statement.  — © 2019 NewsCentral Media



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