Legal battle over Tshwane broadband intensifies

The legal fight stalling the rollout of a municipal broadband network in Tshwane is far from over.

In 2016, the then ANC-controlled City of Tshwane awarded a contract of more than R1bn to a company called Thobela to install a municipal fibre broadband network.

Via a subsidiary, JSE-listed Altron Nexus owns a stake in Thobela and it was also contracted to supply the infrastructure. It started building the network, but eight months later the incoming DA city government stopped the contract after it alleged that due process was not followed in awarding it.

The City of Tshwane asked the high court to set the contract aside. In July this year, the high court found in its favour, but Altron announced on Thursday that Thobela Telecoms has been granted leave to appeal at the Supreme Court of Appeal.

In its annual report, Altron said it was owed R301m as part of the project.