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Trollip suspends dodgy multi-million Rand Mohlaleng Media contract

Trollip suspends dodgy multi-million Rand Mohlaleng Media contract

Nelson Mandela Bay Executive Mayor, Athol Trollip, on Wednesday afternoon announced that the Metro has frozen a multimillion Rand contract awarded to Johannesburg-based Mohlaleng Media pending a full internal investigation.

"I have today asked the City Manager to freeze the Municipality’s contract with Mohlaleng Media with immediate effect, and conduct a comprehensive investigation into the deal," said Trollip.

He said that last week, he requested a report on the terms of agreement and total expenditure relating to the contract with Mohlaleng Media, which was first signed on the 16th October 2014.

"I was disturbed to learn that the Nelson Mandela Bay Municipality had spent in excess of R21 million on this contract, some of which was allegedly used to remunerate political appointments under the former administration," said the Mayor.

"This bears all the hallmarks of an irregular contract.

"I believe that there are adequate grounds to immediately freeze this contract and call for this immediate and urgent investigation to safeguard the institution and its reserves.

"This administration will not tolerate irregular, wasteful or unnecessary expenditure, in any form, and any contract that is alleged to have facilitated any expenditure of this nature will be fully investigated and scrutinised."

Mohlaleng Media, whose contract expires in December 2017, was contracted to provide media and communications services to the Nelson Mandela Bay Municipality. However, red flags were raised when the company was reportedly allowed to spend way beyond its initial R10 million contract budget.