The City of Tshwane is set to pay R950 million to get out of a contract to supply smart electricity meters, a project that could have cost R11 million a year to self-manage.<\/p>\n
This is according to a report in the City Press, citing court papers filed in the North Gauteng High Court in Pretoria, which state that the city will have to pay the contractor before a new council is elected.<\/p>\n
The paper noted that the cancellation fee is over and above a sum of ‘at least R2.2 billion’ that Tshwane has already paid the contractors, PEU Capital Partners, because it sold electricity at a loss, according to the DA.<\/p>\n
PEU was appointed to roll out more than 800,000 smart electricity meters, a vending platform and related systems over two years, starting in October 2013. The contract included the management of the system for a period of eight years.<\/p>\n
The company was also to receive 19.5% commission on all electricity sales through the system.<\/p>\n
Judge Neil Tuchten granted an interim interdict against the cancellation payment and the matter will be heard on July 5, City Press reported.<\/p>\n
However, supplementary court papers filed by business rights group AfriSake, included a memorandum by Umar Banda, the acting chief financial officer of the city, to outgoing mayor Kgosientso Ramokgopa\u2019s executive committee.<\/p>\n
“In it, Banda admits that the project would never have delivered the expected benefits and could not be expected to deliver them in the future,” the paper said.<\/p>\n
Read the full article in the 26 June 2016 edition of the City Press.<\/em><\/p>\n Tshwane riots show the result of Zuma\u2019s crony politics in SA<\/strong><\/a><\/p>\n How the SABC is covering the Tshwane protests vs what\u2019s really happening<\/a><\/strong><\/p>\nMore on smart meters<\/h3>\n