The City of Tshwane has announced that it will initiate legal steps to get out of a contract that’s costing rate payers R2.6 billion.
This is a contract worth about R 2.6 billion entered into by the previous administration in 2013 for the allocation of smart water meters, but it was halted in 2016 because it wasn't economically viable.
Spokesperson for the executive mayor of Tshwane, Samkelo Mgobozi, says on November 30 they will be filing concession affidavits asserting that they believe the contract is unlawful and therefore should be set aside.
He says the contract was born of 'a number of severe and fatal irregularities'.
The old administration under Kgosientso Ramokgopa was advised by Treasury not to go ahead with the contract because there were issues with supply chain and contractual negotiations, but yet they forged on and concluded the contract.— Samkelo Mgobozi, Spokesperson to Executive Mayor of Tshwane
Business rights group AfriSake has a substantive review process underway, and is seeking to have the contract invalidated and set aside.
This means the city will have to continue paying 9 cents for every rand on the use of electricity until such time as the contract is set aside by the courts, says Mgobozi.
he says while the electricity meters will still be used, they will find equitable and affordable electricity distribution for residents.
Listen to Smakelo Mgobozi explain the irregularities with the Tshwane water meter contract: