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Newly elected Tshwane Mayor Stevens Mokgalapa has announced that the City has cancelled the scandal-ridden GladAfrica contract.
Mokgalapa made the announcement at a media briefing in Pretoria early on Monday morning, reports eNCA.
The mayor reportedly said the contract was terminated by mutual agreement.
Last month, embattled municipal manager of the City of Tshwane Moeketsi Mosola did an about-turn regarding the GladAfrica scandal, conceding that the expenditure for the tender was in fact irregular, as stated by the Auditor General (AG).
Tshwane member of the mayoral committee for finance Mare-Lise Fourie told News24 that around R317m spent on the GladAfrica tender had been found to be irregular. This was also conceded by Mosola.
"The AG in accordance with his mandate expressed an opinion on the financial statements which concluded that the GladAfrica contract is irregular," Fourie told News24.
Engineering company GladAfrica and the City have been at the centre of allegations of tender irregularities since last year. It was reported that GladAfrica scored a R12bn deal to provide the City with project management support.
Earlier this month, Mokgalapa vowed to become "Mr Service Delivery" who will act on the multibillion-rand GladAfrica saga.
