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COJ probes 'fraudulent' Fibrehoods, Vumatel contracts

Staff Writer's picture

This article was originally published on ITWeb Read more at source.

The City of Johannesburg (COJ) has launched a forensic investigation into the circumstances around the Altivex 705 cell mast contract with the Johannesburg Property Company (JPC).

In a press statement, the city says it is in the process of taking criminal and disciplinary action against one current and one former city employee.

In 2013, JPC entered into a contract with Altivex 705. COJ says the contract required Altivex 705 to conduct an analysisof the cell mast industry and produce a master plan for regulating cell mast applications involving city-owned street poles.

Further to this, Altivex 705 was required to process applications from cell mast companies on behalf of the city, it notes.

According to COJ, this agreement did not in any way allow Altivex 705 to install aerial fibre or cede rights contained in the original contract, and the proposed master plan has not seen the light of day.

As a result, JPC notified Altivex 705 of its breach of contract in April 2017, COJ adds.

Altivex 705 subsequently ceded its contract to Fibrehoods, which in turn ceded its contract to Vumatel.

Altivex 705, Fibrehoods and Vumatel were all subsidiaries of the Waterfall Group. Vumatel has claimed Waterfall's holding in all three companies has been bought out. However, COJ says it has yet to see proof of this.

The city says two employees, one from JPC and one from City Power, issued fraudulent letters stating Fibrehoods/Vumatel have a valid agreement with the city that allows them to roll-out aerial fibre city-wide.

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