Tshwane mayor terminates GladAfrica contract

Mokgalapa made the announcement during a media briefing on Monday morning.

In January, the Auditor-General (AG) confirmed that the multi-million rand contract was irregular and that the city had then already paid R317 million to the consultancy firm.

The original value of the contract was R12 billion.

It was also found that the tender didn't comply with supply chain management regulations or the constitution.

Spokesperson for the office of the Tshwane Mayor, Samkelo Mgobozi, confirmed GladaAfrica and the city will part ways on at the end of the current financial year.

"GladAfrica will complete its work till the municipal financial year end which is June and we will part ways. This is in the interest of service delivery and in the interest of restoring confidence in the city's ability to produce service delivery in the interest of the people of Tshwane." 

Mgobozi says the city wants GladAfrica to complete its outstanding work and therefore chose not to end the contract with immediate effect. 

The city will also establish a financial misconduct board to investigate every individual implicated in the irregularity of the contract, including city manager Moeketsi Mosola.

"He (the mayor) will refer all officials who were involved in the GladAfrica saga through that financial disciplinary board and they will make a recommendation to council as to what is expected to follow and council will make a decision as to which officials need to be punished and what consequences council will take, " Mgobozi says.