It’s being reported that three senior African National Congress (ANC) ministers bagged millions of rands from a botched broadband project for the City of Joburg.
According to The Sunday Times, a report by Nexus Forensic Services, supported by affidavits from city officials, found mismanagement and deception compromised the project aimed at providing affordable broadband services in the city.
It’s understood the costs of the project more than doubled to nearly R1.7 billion.
Police are investigating claims of fraud and corruption in the broadband contracts which involve telecommunications giant Ericsson.
The paper claims the US Department of Justice has also shown interest in the case.
The Nexus report names Public Service and Administration Minister Ayanda Dlodlo, deputy defence minister Kebby Mapatsoe and former diplomat Lerema Kekana as directors of the BEE partner involved CitiConnect Communications”.
While Nexus does not specifically attribute wrongdoing to the three, it contains allegations about CitiConnect Communications, Ericsson and its local arm on home soil Ericsson SA.
The report details how the project’s bosses did everything possible to accommodate Ericsson SA which added millions of rands to the cost of the project.
Dlodlo has admitted to making R3 million from selling her shares in CCC but insists her stake was declared.
Mapatsoe says he’s unaware of the forensic probe into the project, while Kekana has declined to comment.