Trollip says the contract bears all the hallmarks of an “irregular contract” after local newspaper – The Herald – reported 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.
In a statement Trollip said he 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”.
The deal was signed when the Metro was still run by the ANC. It is not clear if former mayor and soccer boss “Dr” Danny Jordaan was part of the negotiations.
“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,” says Trollip.
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”.