ALLEGATIONS of corruption and kickbacks involving a R30-million mobile services contract have rocked the Nelson Mandela Bay municipality, with eight senior officials possibly facing suspension.

Acting municipal manager Themba Hani has tasked the city's internal audit division to investigate claims that top officials received "kickbacks" from cellphone operators Vodacom and its rivals MTN and Nashua Mobile in a bid for a three-year contract to supply the municipality with cellphones and 3G internet access. MTN was announced the successful bidder last month.

Hani has issued letters of intended disciplinary action against eight senior officials who were involved in "overseeing" the bidding process.

However allegations have also been made against Hani, accusing him of having endorsed MTN's successful bid.

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