DA lays charges against Tshwane council

2015-11-02 17:10

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Pretoria - The DA in Tshwane has laid criminal charges against the city over the cancelled contract for PEU smart meters.

Tshwane mayoral candidate Solly Msimanga said the decision to lay charges followed unsuccessful attempts to approach Finance Minister Nhlanhla Nene and Co-operative Governance and Traditional Affairs Minister Pravin Gordhan to initiate a forensic investigation into the matter.

"We have, therefore, taken the next logical step of laying charges of fraud, perjury, contravention of the Municipal Finance Management Act and misleading the City of Tshwane municipal council against the mayor, municipal manager and the directors of PEU Capital Partners [PEU] and Total Utility Management Services [TUMS], as well as any other parties who may have been involved in or unduly benefitted from this contract," Msimanga said in a statement.

Police spokesperson Warrant Officer Tumisang Moloto confirmed that the case was opened and that police would initiate investigations.

Msimanga said the PEU "smart-meter" contract had cost the city an estimated R170m in the 2013/14 financial year. He said the city paid PEU a further R1bn during the 2014/15 financial year while in the current financial year, the city has already paid approximately R250m to this company – despite the contract having been "terminated" in June 2015.

"This is in addition to the R400m lost when the City’s own automated meter reading infrastructure, which was barely a year old, was scrapped in favour of the PEU contract. The total amount lost by the city to date on this contract is R1.84bn, for just more than 12 000 meters of the 800 000 that should have been installed," he said.

Msimanga added that it was critical that officials responsible for the wasteful expenditure be held accountable.

Officials from the city declined to comment on the matter.

"The city wishes not to comment on the matter," spokesperson Selby Bokaba told News24. 

Read more on:    da  |  pretoria

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