The Democratic Alliance in Plettenberg Bay has allegedly given a company, run by a resident in the area, a R4.3 million short-term Information Technology contract without tender.
The Sunday Times reports that the contract was given to Dimension Data, a global IT company bought by Japan's NTT for R22 billion last year.
The company's chairman was Jeremy Ord, a Plettenberg Bay resident.
The Democratic Alliance took control of the Bitou municipality in May last year, and after doing so, it fired IT supplier Lefatshe Technologies because its R10 million system didn't work.
According to the newspaper, mayor Memory Booysen said Ord then "offered to send a team down to Plett, at no cost, to evaluate their technology systems.
On December 11, the DA-led council requested a "deviation from the tender process" so it could award Dimension Data the contract "to stabilise the IT environment at Bitou".
Bitou manager, Terry Giliomee then wrote a letter to Booysen dated December 12, in which was stated that they did not receive other quotations because "there was not enough time".
