Aurecon wins case against City of Cape Town over decommissioning contract
The city argued that the joint venture between Aurecon and ODA Consulting had an unfair advantage in securing a tender to decommission Athlone power station
The City of Cape Town has lost a battle in the Constitutional Court with an engineering company, which it claimed had had an unfair advantage securing a tender to decommission Athlone power station. The tender was awarded to a joint venture between Aurecon and ODA Consulting. The city said it erred in awarding the tender, with some council members complaining that the process was tainted by corruption and irregularities. Aurecon was alleged to have had an unfair advantage because it was privy to internal e-mail communication regarding the tender. Due to the concerns raised‚ Cape Town mayor Patricia De Lille gave instructions to EY auditors to investigate. After instigating a civil case in the High Court in Cape Town‚ Aurecon launched a counter application in which it sought a declaratory order that would not prevent it from bidding for the tender. The high court ruled in favour of the city, saying that Aurecon should have been precluded from tendering for the contract due to its inv...
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