AfriSake // PEU & TUMS
Dear All,
Only hours after the attached letter of demand was sent on behalf of AfriSake to the City of Tshwane's lawyers, the mayor hurriedly convened a media briefing for tomorrow at 12:30 at the municipality's Centurion offices, to publically announce the terms of termination of the controversial pre-paid electricity meter contract between the City and PEU.
AfriSake was planning to approach the North Gauteng High court on an urgent basis to compel the City to disclose the terms of termination of its contract with PEU, after PEU and the city failed to disclose the particulars thereof as requested by AfriSake.
Moneyweb revealed yesterday that the still City continues to pay between R2,6 million and R15 million daily to PEU in terms of a secret deal agreed between city officials and PEU.
The secrecy of the terms of cancellation is symptomatic of the corrupt circumstances surrounding the entire deal between city officials and PEU.
AfriSake will monitor the media briefing of the mayor closely and will continue with its review application in respect of the process that led to the conclusion of the flawed contract between the city and PEU.
If needs be, steps will be taken to ensure that officials who acted unlawfully, are held personally liable.
Willie Spies
Text of the letter from Hurter Spies Inc to the City of Tshwane’s lawyers, Kunene Ramapala Botha Inc, June 23 2015
23 June 2015
Dear M Kunene & M Nyalungu
RE: AFRISAKE & OTHERS v CITY OF TSHWANE & OTHERS CASE NUMBER: 74192/2013
1. We refer to our letters dated 16 May 2015 and 19 May 2015 respectively, to which we received your acknowledgement of receipt on 20 May 2015.
2. In your letter dated 20 May 2015 you indicated to us that you are taking instructions and that you would revert soon. Almost a month has now lapsed without any further formal response from your side. This is not acceptable.
3. In amplification of our previous correspondence we reiterate that our client has a particular interest in the in the light of the pending litigation to know formally (and not through the media) what the exact status of the Master Services Agreement is. For instance are payments in terms of the MSA to PEU/TUMS continued to be made by the COT? And if so, until when and what are the amounts involved? Are meters still being rolled out, and if so, until when? Has a new or alternative transaction being concluded? What are the terms of termination/cancellation? Has PEU/TUMS submitted any written proposals for termination/cancellation, and if so what are those proposals?
4. Our clients are of the view that sufficient time was allowed and this letter serves as a formal demand to receive the information requested in our said letters by no later than close of business on 26 June 2015 failing which our client will approach the court for appropriate relief.
5. In addition to the above request it has recently come to our client’s attention that are still documents in your client’s possession which have not been included in the record, alternative which are relevant to the relief sought in the pending review application and which should be discovered and which we hereby formally request.
6. The additional documents hereby requested are the following:
6.1 All communications from National Treasury addressed to the City of Tshwane in the run-up to the conclusion of the Masters Services Agreement;
6.2 A copy of a settlement agreement between the City of Tshwane, Peu (Pty) Ltd and TUMS, which was signed by the Chief Financial Officer of the City of Tshwane, Umar Banda on behalf of the City, regarding the termination of the contract;
6.3 All progress reports by the Group Financial Department regarding the so-called Security of Revenue Project until the date of the public announcement that the transaction between the City of Tshwane and Peu and TUMS was terminated;
6.4 Any draft roll-out plans prepared by Peu and/or TUMS required to be submitted to the COT in terms of the provisions of the Master Service Agreement, within 90 days of the conclusion thereof;
6.5 A legal opinion on the MSA and the pending review application prepared by Norton Rose at the request of PEU/TUMS and/or an equity partner and which was handed to the City of Tshwane by Peu and/or TUMS. Since the legal opinion was handed to the City of Tshwane by the party on whose behalf it was obtained, we submit that legal privilege does not apply thereto;
6.6 Any formal notices issued by the City of Tshwane and/or its attorneys to Peu or TUMS in relation to breach of contract in respect of the Master Services Agreement;
6.7 In a television interview on M-Net’s Carte Blanche broadcasted on Sunday 14 June 2015, the Municipal Manager, Mr. Jason Ngobeni alleged that a full financial feasibility study was conducted in respect of the smart meter project prior to the conclusion of the Master Services Agreement. A copy of the said feasibility study report is required; and
6.8 Any addenda to the Master Services Agreement concluded between the City, PEU and TMS, in particular those addenda in relation to the penalty regime relevant to the contract.
Kindly forward the relevant documentation at your earliest convenience on or before 29 June 2015. All our clients’ rights and in particular our clients’ right to approach the court should you fail to adhere to the request, are expressly reserved.
Yours sincerely
HURTER SPIES INC
Per: W D Spies
ENDS
Statement issued by Willie Spies on behalf of AfriSake, June 23 2015
