After more than a decade, there is still no clarity as to when the Johannesburg Broadband Network (JBN) project will go live and when residents will benefit from the 900km fibre broadband network infrastructure.
Initiated in 2006, the JBN project was designed to integrate the City of Joburg's (COJ's) telecommunications platforms, lower operational costs, increase access, lower costs of communications for residents and allow access to areas previously not connected.
The COJ, which was led by the ANC at the time, believed the project would accelerate its smart city programmes.
However, getting it off the ground has been fruitless, with hurdles ranging from administrative changes, allegations of corruption, escalating costs and changes in the running and management of the network. Recent reports also note the network is not operational.
Attempts to obtain comment from the COJ and the mayor's office proved unsuccessful.
ITWeb looks at some of the key issues that have impacted the city's ailing broadband project:
Network buyout
The contract to build and operate the 900km broadband network was initially awarded to Ericsson SA (ESA) in 2010, but later ceded to CitiConnect Communications (CCC). CCC managed an entity called BWired, which was established by the city in partnership with ESA, when the broadband project was initiated.
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.
However, the city decided to cancel the services of CCC in 2014. In 2015, the COJ agreed to pay R1.3 billion to buy itself out of the JBN project deal, and established a municipal-owned entity called Metro Trading Company to run the network.
The network was initially envisaged to become operational on 1 July 2013, but the termination of the original contract scuppered that deadline.
Forensic investigation
In March 2017, the DA-led city approved a decision to investigate the previous administration's move to take control of the JBN project.
At the time, executive mayor Herman Mashaba said a thorough investigation was needed as a result of the "astronomical costs" incurred by the city after taking over the project.
Mashaba questioned the ANC administration's decision to spend R1.3 billion to buy out the project.
After establishing the investigation, the COJ confirmed 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.
Ballooning costs
Providing an update concerning the forensic investigation in December 2017, Mashaba indicated the costs were higher than the R1.3 billion initially thought.
According to him, the investigation revealed costs relating to the deal amounting to R1.7 billion. "Based on the progress report provided to me, these costs are likely to rise as investigators delve deeper into alleged payments which had gone unaccounted for."
During this time, the mayor revealed the investigating team's report implicated two members of national government (a minister and a deputy minister) as benefiting from the previous administration's decision to purchase the fibre network, to the tune of R279 million.
The preliminary findings also indicate members of the ANC were, from the outset, involved in manipulating the city's tender process with respect to the deal.
At the weekend, the Sunday Times reported the final findings of the COJ's forensic investigation, noting three senior ANC members allegedly scored millions of rands from the botched City of Johannesburg broadband project and could be facing fraud charges.
The newspaper said police are investigating the possibility of fraud and corruption in the contracts, which involve ESA. 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 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, CCC, according to the Sunday newspaper.
Although the report does not attribute specific wrongdoing to the three ANC members, it does contain allegations about CCC, Ericsson and its local arm ESA, reports the Sunday Times.
Quoted in the Sunday Times, Johannes Persson, Ericsson's spokesperson, 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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