PRETORIA – Tshwane Mayor Solly Msimanga has announced the city will initiate legal steps at the end of this month, to try and get out of a contract that’s already cost rate payers R2.6 billion.
The former administration entered into a contract with PEU Capital for the allocation of smart meters in June 2013 but halted the project in May last year because it was not economically viable.
The municipality continues to pay the company nine cents for every rand received for electricity sales.
AfriSake launched a legal challenge to the validity of the contract last year.
Msimanga says the city will file supplementary affidavits in the matter already before the court to confirm the PEU Capital contract is indeed irregular and unlawful.
“Criminal charges have already been laid. Our [aim] now is to try and get out of this contract that is a black hole for us, and then try to make sure that we start redirecting those funds towards serving our people.”
Finance MMC Marelise Fourie says the city has paid billions of rand and continues to pay for about 12,000 smart meters.
The city is expected to file its court papers before the end of this month.