JSE-listed Altron has announced that it felt vindicated after the Constitutional Court upheld the Supreme Court of Appeal’s ruling that the broadband network contract awarded to Thobela Telecoms, a special purpose vehicle in which Altron Nexus is a minority shareholder, is valid and binding.
According to the company, in an order dated May 19, 2021, the Constitutional Court refused the City of Tshwane’s application for condonation and dismissed the application for leave to appeal with costs.
Altron group executive: legal, Hansie Schutte, said the company was satisfied with the decision.
“We are pleased with the outcome of the Constitutional Court’s order, and we see this judgment as a victory for the people of Tshwane and all companies who obey the rule of the law as well as the funders involved in this project,” said Schutte.
The broadband project aimed to bring down the cost of government, promote and support e-government initiatives like eTshwane, generate new revenue streams, and improve service delivery and government responsiveness.
In 2016, the then ANC-controlled City of Tshwane awarded a tender to Thobela to install a municipal fibre broadband network.
The company started to build the network, but eight months into the tender, the incoming DA government stopped the contract after it alleged that the tender award process was unlawful due to internal processes and procedures not being correctly followed.
The project was later put on hold by Tshwane, pending the outcome of the court case.
Before the project was approved, the National Treasury raised concerns about the multi-million tender.
BUSINESS REPORT ONLINE