Tshwane mayor Solly Msimanga has intensfied his objective to get the metro out of the controversial multi-million rand electricity smart meter contract with Peu Capital Partners.
“The City is in the process of getting itself out of the PEU smart meter contract which we believe was unlawfully entered into by the previous administration to the tune of billions. In so doing‚ the City has been haemorrhaging public funds that could otherwise be used to provide the services to the millions of people in Tshwane who need a stable and sustainable electricity supply‚” said Msimanga.
Speaking on Monday at the Centurion municipal offices where he was delivering his 100 days in office report‚ he also disclosed that Tshwane had already paid Peu R1.65bn since the contract started in 2013.
The contract‚ meant to give Tshwane better credit control‚ started in October 2013. Peu was to receive 19.5% of all electricity charges as commission in terms of the contract and now the City of Tshwane will have to pay R950?million to get out of the contract.
Msimanga said this would be impossible with the current contract in place‚ stating that the current administration was hopeful that the courts will rule in their favour and “declare the contract invalid” so that citizens of the City of Tshwane can have sustainable and affordable electricity.
The mayor’s remarks come as business lobby group AfriBusiness has applied to the High Court in Pretoria to have the contract set aside on the basis that it is irregular.
In July the organisation succeeded in getting the court to stop the city from paying the R950m‚ which is now in an escrow account until the second part of its application — to have the contract set aside — is dealt with.
Msimanga said his administration had hired a team of new lawyers to extricate the city from the deal.
“We [we] went to court and what we asked for was an extension for us to submit all the relevant documents that the courts had asked for us to come out of it (the contract with Peu). We have now been informed that the other party is willing to pursue the matter further‚” said Msimanga‚ adding that the matter will be heard in court in February 2017.
In November‚ the city filed a concession affidavit with the court saying that the contract was unaffordable‚ irregular‚ irrational and should‚ as a result‚ be declared unlawful and set aside.
Tshwane continues fight to get out of smart meter contract
Tshwane mayor Solly Msimanga has intensfied his objective to get the metro out of the controversial multi-million rand electricity smart meter contract with Peu Capital Partners.
“The City is in the process of getting itself out of the PEU smart meter contract which we believe was unlawfully entered into by the previous administration to the tune of billions. In so doing‚ the City has been haemorrhaging public funds that could otherwise be used to provide the services to the millions of people in Tshwane who need a stable and sustainable electricity supply‚” said Msimanga.
Speaking on Monday at the Centurion municipal offices where he was delivering his 100 days in office report‚ he also disclosed that Tshwane had already paid Peu R1.65bn since the contract started in 2013.
The contract‚ meant to give Tshwane better credit control‚ started in October 2013. Peu was to receive 19.5% of all electricity charges as commission in terms of the contract and now the City of Tshwane will have to pay R950?million to get out of the contract.
Msimanga said this would be impossible with the current contract in place‚ stating that the current administration was hopeful that the courts will rule in their favour and “declare the contract invalid” so that citizens of the City of Tshwane can have sustainable and affordable electricity.
The mayor’s remarks come as business lobby group AfriBusiness has applied to the High Court in Pretoria to have the contract set aside on the basis that it is irregular.
In July the organisation succeeded in getting the court to stop the city from paying the R950m‚ which is now in an escrow account until the second part of its application — to have the contract set aside — is dealt with.
Msimanga said his administration had hired a team of new lawyers to extricate the city from the deal.
“We [we] went to court and what we asked for was an extension for us to submit all the relevant documents that the courts had asked for us to come out of it (the contract with Peu). We have now been informed that the other party is willing to pursue the matter further‚” said Msimanga‚ adding that the matter will be heard in court in February 2017.
In November‚ the city filed a concession affidavit with the court saying that the contract was unaffordable‚ irregular‚ irrational and should‚ as a result‚ be declared unlawful and set aside.
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