Why Altron and Thobela are taking Tshwane to the Supreme Court

Thobela Telecoms decided to appeal the North Gauteng High Court’s decision to set aside the City of Tshwane’s Municipal Broadband Network Project contract after extensive consideration.

This is according to Altron CEO Mteto Nyati. Altron is a shareholder in Thobela Telecoms through its subsidiary Altron Nexus.

Tshwane alleged that the tender process was unlawful because the City’s internal processes and procedures were not followed correctly.

In an interview with MyBroadband, Nyati said that the decision to appeal was not Altron’s alone to make.

The decision was dependent on all the shareholders in the consortium, as well as Absa, which is the project’s funding partner.

Advocate report

Nyati said that rather than only deciding whether or not to go ahead with an appeal, the consortium sought an independent judgement on the case from an advocate.

Based on the advocate’s report, the consortium proceeded with the appeal.

The appeal was formally lodged in September and the matter will be going to the Supreme Court.

There have been no further developments since then and no date for the case has been set. All the relevant affidavits and answering affidavits must still be filed with the court, Nyati said.

When the High Court first set the contract aside, Nyati said that the project cost Altron between R40 million and R60 million, including infrastructure and equipment costs.

He assured that Altron has not seen a cent of taxpayers’ money for the work already done for Tshwane, explaining that they were still in the build phase, which was being bankrolled by their funders.

Now read: Altron to get new head office in Johannesburg

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Why Altron and Thobela are taking Tshwane to the Supreme Court