A LIMPOPO contractor is involved in a tender dispute with the Polokwane municipality after the council's decision to terminate his dam safety construction contract "unlawfully".

Glen Matsaung, a director of MGN Projects, is suing the municipality for about R9million for "unlawful" termination of the contract.

Matsaung was awarded the tender for the safety construction of the Dap Naudé Dam in Houtbosdorp, about 72km east of Polokwane, in May 2007. He had billed the municipality for R10,5million for the project.

But the municipality terminated the contract on March 26 2008 after it was allegedly discovered that he had failed to follow certain procedures during construction.

It has been discovered that a new contractor was appointed at a cost of R14,5million for the same project.

The tender was initially meant for both the Seshego and Dap Naudé dams, but because the municipality had apparently run out of funds, it issued the tender for only the Dap Naudé site.

Matsaung said of concern was that the new contractor was allowed to use equipment that he left on the site to complete the project and was committing the same errors he (Matsaung) was disqualified for.

He said he was suing the municipality for loss of income and for holding back his equipment, which is valued at more than R4million.

He said the case between him and the municipality was at the arbitration stage and was scheduled for next Thursday.

Municipal spokesperson Simon Mokoatedi said yesterday they were not in a position to comment because the matter was still "sub judice."