Cancellation proves AfriBusiness correct
12 May 2015
The summary termination of the controversial contract for prepaid electricity meters between the Tshwane Metropolitan Municipality and the company PEU is a confirmation of the fact that AfriBusiness was quite right about the illegality thereof.
The Tshwane Metro just recently announced that his agreement with PEU was terminated immediately because it costs the Metro too much money. Earlier reports indicated that the Metro pays PEU R5 million per day under an agreement concluded between the Metro and PEU, which is in conflict with constitutional provisions regarding public tender processes.
According to conservative calculations the contract costs taxpayers in the Tshwane Metro at the moment more than R1, 2 billion per year, while it still made no difference to the Metro's ability to put a stop to the non-payment of electricity.
The legal representative of AfriBusiness, Willie Spies, said in a statement on behalf of the business rights watchdog, AfriBusiness will continue with its proceedings against the Metro and PEU. ‘The last thing we want is the replacement of a corrupt contract with a corrupt cancellation that will cost taxpayers so dearly,’ Spies said.