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ANC bigwigs scored millions from botched Joburg broadband project

Staff Writer
By Staff Writer, ITWeb
Johannesburg, 20 Jan 2019
A Nexus Forensic Services report alleges that mismanagement and deception compromised the City of Johannesburg broadband project.
A Nexus Forensic Services report alleges that mismanagement and deception compromised the City of Johannesburg broadband project.

Three senior ANC members allegedly scored millions of rands from the botched City of Johannesburg broadband project and could be facing fraud charges. This according to a report in the Sunday Times this morning on the project which saw its costs balloon to R1.7 billion.

The newspaper said that police are investigating the possibility of fraud and corruption in the contracts, which involve multinational telecommunications giant Ericsson. The US department of justice has also reportedly shown an interest in the case.

A report by Nexus Forensic Services and affidavits by city officials allege that mismanagement and deception compromised the project to provide Johannesburg with cheap broadband services.

The report says public service and administration minister Ayanda Dlodlo, deputy minister of defence and military veterans Kebby Maphatsoe and former diplomat Lerema Kekana were directors of the BEE partner involved, CitiConnect Communications (CCC).

Although the report does not attribute specific wrongdoing to the three ANC members, it does contain allegations about CCC, Ericsson and its local arm Ericsson SA (ESA).

The broadband project was initially supposed to cost R600 million and go live in 2013, but the network has already cost the city around R1.7 billion and is still not operational.

The Sunday Times said that Dlodlo acknowledged her role in the project, saying she had been "naive" and was led to believe it would benefit Umkhonto we Sizwe (MK) veterans. She however admitted that she had made R3 million from selling her shares in CCC, but said she had declared her stake.

Maphatsoe said he was unaware of the forensic investigation, saying he had joined CCC after being approached by MK veterans. He said he resigned from CCC in 2010 and was given a settlement.

"I don't recall what I got but it was not more than R3 million," he said.

Kekana declined to comment to the Sunday Times, as he had not seen the report.

Ericsson's spokesperson Johannes Persson said the company had not seen the report and could not comment on its contents but that "Ericsson regards all allegations of irregularity or misconduct as a serious matter".

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