Corrupt Tshwane contract will cost Pretoria residents an additional R400 million

24 June 2015

The agreement concerning the prepaid electricity metres between the Tshwane Metro and PEU Capital will cost Pretoria residents an estimated additional R400 million.

This was the crux of today’s media conference about the settlement agreement between Tshwane and PEU.

A transfer period of six months, during which an additional commission of 9,5% will be paid to PEU Capital, will amount to approximately R400 million. This amount is additional to the more than R800 million that has already been wasted by the contract. The legal team of AfriBusiness has already requested the settlement agreement for investigation purposes.

The Mayor of Tshwane, Kgosientso Ramokgopa, admitted that no tender process with regards to the electricity metres was followed before the appointment of PEU Capital. He further implied that the tender process was unnecessary, even though no legal reason could be supplied for the deviation of prescribed tender procedures. 

“It is clear that Ramokgopa deems his administration as superior to municipal, provincial and national legislation,” said Cornelius Jansen van Rensburg, CEO of AfriBusiness. 

The City Council will roll out a new tender process within the next six months. PEU Capital will still be in control of all administrative processes until the successful tenderer bought over the remaining 14 000 electricity metres from the company. Despite these decisions, suspicion exists that PEU will eventually simply be appointed yet again. The existing contract comes to an end on30 June 2015.

Further complications include the announcement by Jason Ngobeni, the Municipal Manager, that the Municipality also have plans to place water supply on similar prepaid metres.

Statement issued by Cornelius Jansen van Rensburg, CEO of AfriSake, June 24 2015