The contentious R1.2 billion fleet tender could result in the City of Joburg being hauled to court should it terminate the contract ahead of its schedule as advised by the National Treasury. TheStar_news
Treasury director-general Dondo Mogajane issued a directive to the city in April for it to review the Afrirent contract. Afrirent is contracted over a 30-month period to provide more than 2700 vehicles to the city, and Tsabedze said the deal would lapse in 11 months’ time.
“We will consider legal action, because our view remains that we were appointed using Regulation 32 of the Municipal Finance Management Act , and we did things accordingly,” Tsabedze said. At the time of receiving the contract, Afrirent had a similar deal with Mogale City municipality to also supply it with leased vehicles.
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