Nelson Mandela Bay mayor Athol Trollip wants the municipality to freeze its multi-million rand communications contract with Johannesburg-based company Mohlaleng Media, pending a full investigation into the deal.
This comes as the The Herald revealed on Wednesday that the municipality had lifted the cap on Mohlaleng’s spending, giving it carte blanche to spend as it pleased.
Only half-way through its three-year contract, Mohlaleng has spent R20.8-million, although the contract was initially capped at R10-million.
Trollip said the contract bears the hallmarks of an “irregular contract”.
In a statement on Wednesday afternoon, Trollip said: ” 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.
“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.
“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”.
He added: “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”.