Corrupt Tshwane contract will cost Pretoria residents an additional R400 million
24 June 2015
The agreement concerning the prepaid electricity metres between the Tshwane Metro and PEU Capital will cost Pretoria residents an estimated additional R400 million.
This was the crux of today’s media conference about the settlement agreement between Tshwane and PEU.
A transfer period of six months, during which an additional commission of 9,5% will be paid to PEU Capital, will amount to approximately R400 million. This amount is additional to the more than R800 million that has already been wasted by the contract. The legal team of AfriBusiness has already requested the settlement agreement for investigation purposes.
The Mayor of Tshwane, Kgosientso Ramokgopa, admitted that no tender process with regards to the electricity metres was followed before the appointment of PEU Capital. He further implied that the tender process was unnecessary, even though no legal reason could be supplied for the deviation of prescribed tender procedures.