The African National Congress is starting its “dispute resolution process” in a bid to address the a.
The City of Cape Town has decided to cancel a R40million tender awarded to a tyre company found to have used a labourer as a front for Black Economic Empowerment.
Themba Tyres this year won a tender to supply and repair tyres for all vehicles owned by the city .
But two unsuccessful bidders, Erasmus Tyre Services and Mr Tire, soon uncovered that Themba Tyres was not 100percent owned by historically disadvantaged individuals, as the company had claimed.
Erasmus and Mr Tire's lawyer, Mushtak Parker, told Sowetan that Themba Tyres transferred 67percent of their company's shares to a manual labourer, Frans West, and then allegedly claimed he was a company director. West, who has worked for Themba Tyres for 42 years, was not even aware that he was a major shareholder.
Yesterday, city spokesman Pieter Cronje said they had served notice to Themba Tyres that they intended cancelling the contract.
The decision to cancel the contract came after an application was lodged in the Cape high court to have the tender awarded set aside.
The case continues today.