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R174m on line in new IPTS storm

18 March 2013

Rochelle de Kock

A COURT battle around a disputed R174-million contract for buses used in the Integrated Public Transport System (IPTS) is looming – and whatever the outcome it could cost ratepayers millions of rands in legal fees.

At issue is whether the Nelson Mandela Bay Municipality must pay the bill resulting from approval by former acting city manager Themba Hani to award the contract to a Cape Town company.

The municipality has distanced itself from Hani's decision – and is going to court to fight the awarding of the contract to Lumen Technologies, claiming Hani acted without proper authority.

He denies this – and the company awarded the contract, Lumen Technologies, is opposing the municipality's case, saying it will fight until the end.

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