The North Gauteng High Court on Tuesday set aside the Build, Operate and Transfer (BOT) multimillion-rand broadband contract with the City of Tshwane on the grounds that the previous administration entered into the contract unlawfully.
The Democratic Alliance-led municipality launched a review application to have the contract set aside, saying the contract which was approved by the African National Congress-led previous administration, was flawed and contravened rules that were in place when awarded.
The City said as a result, they had been contractually bound to pay an annual amount of R278 million.
“Finally, the City is no longer bound to bleeding its finances towards an unscrupulous agreement that wasn’t benefiting Tshwane residents,” said Tshwane Mayor Stevens Mokgalapa in a statement.
– African News Agency (ANA)