A-G torpedoes Gauteng broadband

25 August 2014 - 02:03 By Isaac Mahlangu
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Damning allegations of tender irregularities have jeopardised the implementation of Gauteng's R1.2-billion broadband network.

The delayed project is in trouble because the contract signed with Altech Alcom Matomo to implement it has been red-flagged by the auditor-general.

He raised the following concerns, which came to light during the 2013-2014 audit:

  • Unfair advantage given to the winning bidder;
  • Failure by Altech Alcom Matomo to meet conditions such as confirmation of registration with the Department of Trade and Industry in respect of national industry participation in programme; and
  • Inadequate evaluation and oversight during the evaluation of the tender.

The auditor-general, in a letter to the Gauteng department of finance's chief financial officer, Kgomotso Mojapelo, dated May 16, said that Altech Alcom Matomo should have been disqualified.

John Sukazi, spokesman for the Gauteng department of finance, refused to respond to questions about the issues raised by the auditor-general.

Tim Ellis, a group executive at Altron TMT, which owns Altech Alcom Matomo, denied that there were irregularities in the awarding of the tender: "The entire tender process was open, structured and fairly adjudicated.

"Altech Alcom Matomo complied with all tender requirements [of] the Gauteng government and the company received no special advantage."

The company would not respond to questions about a R50-million upfront payment it reportedly demanded from the province.

Further delays in the implementation of the broadband network will affect schools that were hoping to start using high-speed e-learning technology soon.

The Gauteng broadband network will link about 130000 government employees, 40 community service centres and dozens of hospitals.

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