PEU meter scandal to be investigated
Cogta minister Pravin Gordhan has ordered the Gauteng MEC for local government to start an investigation into the smart metering contract and report back within 30 days.
Andrew Ngozo
Cooperative Governance Minister Pravin Gordhan is to investigate Tshwane’s billion rand prepaid electricity smart meter contract.
This news comes in the wake of a letter sent last month to Gordhan and Minister of Finance Nhlanhla Nene by the DA, requesting a forensic probe into the matter.
The DA welcomed the announcement of the investigation into what it termed “Tshwane metro’s corrupt and unlawful PEU smart-meter contract, which has wasted R1.84 billion to date”.
DA mayoral candidate for Tshwane Solly Msimanga said he hoped the investigation and the criminal charges laid against mayor Kgosientso Ramokgopa and all those involved would ensure that justice was served.
“This is money that the residents of Tshwane have been robbed of and such an exorbitant amount has only resulted in around 12 000 metres being installed out of 800 000 metres needed,” Msimaga said .
Msimanga reiterated that the Tshwane mayor had been instructed not to persue the project.
“In fact, minister Gordhan himself had instructed the Tshwane metro not to enter into the PEU contract when he was minister of finance. But mayor Ramokgopa and city manager Jason Ngobeni chose to ignore this instruction,” said Msimanga.
Earlier this week, the DA laid criminal charges against the mayor, the city manager and the directors of PEU Capital Partners.
They are being accused of fraud, perjury, contravention of the Municipal Finance Management Act and misleading the Tshwane metro municipal council.
The DA said: “Despite these unlawful acts, no action had been taken by the national government against Ramokgopa and Ngobeni to date. Therefore minister Gordhan’s move to investigate the contract is a welcome first step against this corrupt, fraudulent and unlawful situation”.
Minister Gordhan had written to Gauteng MEC for local government Jacob Mamabolo requesting him to start an investigation into the matter.
Said Msimanga: “It is critical that MEC Mamabolo acts independently and impartially in conducting this investigation and not protect his fellow [ANC] cadres who are guilty of maladministration and corruption.”
Minister Gordhan has indicated that he wants a progress report from MEC Mamabolo’s department within 30 days.
When the letter was sent to the two ministers, Tshwane metro spokesperson Selby Bokaba dismissed the DA’s allegations as factually incorrect and misleading.
“The City will not pay any penalties for the termination of the contract, but will ensure that the replacement service provider, which is yet to be appointed, will take over the systems and infrastructure already installed, at a price to be determined by an independent valuator,” he said.
Bokaba added the metro would continue to pay the service provider a reduced service fee until such a time as a replacement had been appointed.
He said the DA was not privy to a series of meetings and intergovernmental engagements on the matter.
Also read:
DA seeks urgent forensic investigation over PEU
Smart meters not all that smart
Tshwane metro slams allegations of financial mismanagement in smart meter plan
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