Joburg blamed for botched broadband deal



JOHANNESBURG, (CAJ News) – THE City of Johannesburg (CoJ) has been accused of avoiding responsibility in hiring City Connect Communications (CCC), whose performance led to the scrapping of a R1,2 billion broadband contract with Ericsson.

Democratic Alliance (DA) Councillor, Andrew Stewart, responding to a statement in the City Council, where Ruby Mathang, Member of the Mayoral Committee for Economic Development, said the city was not responsible, refuted that the appointment of Ericsson had been “rigorous, open and transparent.”

Stewart noted in Council that an Ericsson executive involved in negotiations with the CoJ had resigned soon after the contract was signed, immediately becoming a director of CCC.

He added that the Ericsson contract stipulated that the work should be awarded to CCC.

“Therefore the City was involved in hiring CCC. Before CoJ signed the Ericsson contract they insisted CCC would be the sub- contractor. It was part of the deal,” Stewart said.

Earlier Stewart had asked MMC Mathang whether CCC had any experience in laying broadband cables prior to being appointed. Stewart had also wanted to know what other projects CCC had worked on.

“Clearly CCC were unfit to do the job, and now the City is trying to avoid responsibility,” he said.

Another DA Councillor, Martin Louw, took Mayor Parks Tau to task for not disclosing further details about the R1,2 billion settlement between CoJ and Ericsson over a disputed 900 km fibre network.

Tau announced the settlement on May 28.

However, Louw said because of the magnitude and importance of the project, more specific detail was required.

– CAJ News



















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Posted by on Jun 27 2015. Filed under Broadband, Finance, Finance & Banking, Technology. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

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