Altron headed to court over loss of Tshwane broadband contract

Altron said on Thursday Thobela Telecoms, of which it is a minority shareholder, has been granted leave to appeal a July court judgment that set aside the City of Tshwane’s municipal R1.2bn broadband contract.

Thobela had been granted leave to appeal the decision directly to the Supreme Court of Appeal, and shareholders would be advised regarding the outcome, the technology group said in a statement. The high court in Pretoria set aside the contract awarded in 2015 to Thobela Telecoms, a special purpose vehicle in which Altron is a minority shareholder. Altron was involved as primary network designer and architect, as well as a supplier of broadband equipment and related services.

After the contract was awarded, the city said the tender process was unlawful because its own internal processes and procedures were not correctly followed. The city later put the project on hold pending the outcome of the case. Altron has said previously it had completed about 40% of the project before funding was stopped. It was owed R270m, but only expected to recover about R200m.

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