The SCA has overturned a High Court ruling on the loss of a contract worth R1.2bn by the City of Tshwane that had been awarded to technology group Altron.

A Business Day report says 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 correctly followed.

The project was put on hold by the City of Tshwane pending the outcome of the court case. In September 2019, Thobela Telecoms, in which Altron is a minority shareholder, had been granted leave to appeal against a July court judgment that set aside the City of Tshwane’s R1.2bn municipal broadband contract.

The Gauteng High Court (Pretoria) set aside the contract, which was awarded in 2015 to Thobela Telecoms, created specifically to bid for the contract.

Altron was one of three applicants who applied for leave to appeal against the initial judgment. Altron previously said it had completed about 40% of the project before funding was stopped. It was owed R270m, but only expected to recover about R200m.

The SCA overturned the High Court’s judgment in its entirety, saying there was no basis for finding any possible maladministration or mismanagement of Altron Nexus.

The appeal court said the City of Tshwane and its officials were solely to blame for its predicament and that the ruling confirms that the broadband contract is in force and should be resumed without any further delay.

Altron said it would be able to recover all its costs and any amounts outstanding under the contract as a result of the ruling.

Full Business Day report (subscription needed)

Judgment

Judge VM Ponnan, who wrote the appeal judgment on behalf of a Bench of five, had some strong words for the city, says a Pretoria News report.

He said the fact that the DA took over was not an excuse for the delay in bringing the initial application.

‘As early as February 2015, (Solly) Msimanga had labelled the project a dodgy deal,’ the judge said, adding that the High Court was ‘far too receptive to the city’s case’ when it initially ruled in its favour.

‘Even though armed with the evidence upon which it now relies, the city… has sat back over a protracted period, but wants this indifference to be disregarded entirely. It had several opportunities to have alerted the appellants to its misgivings or brought review proceedings. It did neither,’ the judge said.

Full Pretoria News report