AfriBusiness approaches AG re corrupt power contract

14 May 2015

AfriBusiness will put a formal request to the Auditor-General (AG) tomorrow, to institute a probe into the multimillion-rand contract between the Tshwane Metro Municipality and Peu Capital.

This comes after the Metro Council announced that the contract will be cancelled, after about one billion rand had already been wasted on it.

According to conservative calculations, the contract – at the moment - costs taxpayers in the Tshwane Metro more than R1,2 billion per year, while it still made no difference to the Metro's ability to put a stop to the non-payment of electricity.

The Legal Representative for AfriBusiness, Willie Spies, said AfriBusiness will continue with its proceedings against the Metro and Peu Capital. “The last thing we want is the replacement of a corrupt contract with a corrupt cancellation that’ll cost taxpayers so dearly.”

“We will communicate with the Metro’s legal team to get more details about the basis of the termination. According to reliable sources the Metro plans to continue paying Peu about R3 million per day (R800 million per year) after the cancellation. This means that the cancellation of the agreement will be even more harmful than the maintenance thereof.”

In his response to the cancellation, Cornelius Jansen van Rensburg, AfriBusiness CEO, said he was delighted that AfriBusiness once again has been completely vindicated by the events surrounding the contract.

“AfriBusiness will continue to strive for transparency, clean administration and the protection of property rights and the rights of taxpayers,” Jansen van Rensburg said.

Statement issued by Willie Spies. Legal Representative: AfriBusiness/AfriSake, and Cornelius Jansen van Rensburg, CEO: AfriBusiness/AfriSake, May 14 2015