- The ANC has accused new Tshwane mayor, Stevens Mokgalapa, ofgiving GladAfrica a hefty payout
- This comes after irregularities were found in the company's contracts with the city
- The ANC also claism that Mokgalapa does not have the authority to end city contracts on his own
Stevens Mokgalapa, the new mayor of Tshwane, has been accused of giving a R250 million "golden handshake" to company GladAfrica.
This was after Mokgalapa said that the city would no longer be doing business with Glad Africa.
Mokgalapa, however, has denied the allegations of making the payout.
Mokgalapa announced that Tshwane would be ending its business relationship with Glad Africa at a press conference. The contract was reportedly terminated after the auditor-general found irregularities in GladAfrica's finances.
Howver, the ANC in the city maintains that the new mayor paid GladAfrica R250 million in a settlement agreement. Additionally, the ANC says Mokgalapa did not consult the city council before making the decision, according to the Sunday Times.
They have accused Mokgalapa of acting unilaterally and without a mandate. In the ANC's view, Mokgalapa does not have the power to terminate such city contracts on his own.
The ANC has also called the contract illegal, and says more than R500 million was paid to GladAfrica in total.
They allege that these funds were spent on fake consulting services, which did not produce any value for the city in the form of roads, clinics or other public utilities.
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