City of Joburg (COJ) mayor Herman Mashaba believes the motion of no confidence against him and the speaker of council is motivated by the decision to institute an investigation into the previous administration's decision to take control of the Johannesburg Broadband Network (JBN) project.
In March, Mashaba confirmed a thorough investigation will take place as a result of the "astronomical costs" incurred by the city after taking over the project. In 2015, under ANC leadership, the COJ agreed to pay R1.3 billion to buy itself out of the JBN project deal.
After establishing the investigation, the COJ confirmed that a senior official from the Department of Economic Development had been suspended pending a disciplinary hearing into allegations of misconduct relating to contracts and payments linked to the broadband network project.
Although a complete report of the investigation is yet to be released, Mashaba says: "Preliminary findings of the report indicate that a number of high-profile individuals associated with the ANC have been linked to the city's decision to purchase the fibre network."
The executive mayor is of the view that the preliminary findings have influenced the interest of the ANC's Umkhonto We Sizwe Military Veterans Association (MKMVA) in the tabled motion of no confidence against him.
In a statement, Mashaba says: "I have been advised that the city will soon receive a full report based on an independent forensic investigation into the previous administration's decision to purchase a 900km fibre broadband network at a cost of R1.3 billion.
"Specifically, it would appear that two senior members of the MKMVA held an interest in the companies benefiting from the purchase of the broadband network, benefiting almost R200 million. Why was this permitted?
"The preliminary findings also strongly indicate the same senior members of the MKMVA were, from the outset, deeply involved in manipulating the city's tender process with respect to the deal."
Taking the reins
Initiated in 2006, the JBN project aims to provide access to broadband services to improve the city's delivery services, realise ICT-related savings, and provide communities and businesses with more affordable Internet.
The contract to build and operate the 900km broadband network was initially awarded to Ericsson SA, which won it in 2010, but later ceded it to CitiConnect Communications.
In 2015, the city decided to acquire the fibre network and establish a municipal-owned entity, the Metropolitan Trade Company, to take over the running of its R1.3 billion broadband network.
Under the initial agreement, the city would have paid an annual fee for the building and operation of the network. After 15 years, it would have taken over ownership of the network.
According to Mashaba, the aim of the JBN project was to provide access to broadband services which would improve the city's service delivery, realise ICT cost-related savings for the city, and give communities and businesses across Johannesburg more affordable Internet access.
Despite the astronomical costs, few of these benefits have been realised, necessitating a thorough investigation of the decision, he concludes.
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