On 5 December 2013, Afrikaans business rights watchdog organisation, AfriSake, initiated court proceedings to prevent a contract between the City of Tshwane (Pretoria) and private service provider PEU Capital Partners (Pty) Ltd (PEU) from proceeding.
The contract, with service fees to PEU estimated to be in excess of R27 billion over the contract period, was established in May 2013, when the City of Tshwane approved a 10-year arrangement to outsource its entire electricity metering and revenue collection activity to a private company, PEU. By CHRIS YELLAND.
AfriSake claims that "PEU has no experience in the installation or management of electricity infrastructure in towns or cities", and that the outsourcing contract "is probably an example of one of the most blatantly corrupt municipal transactions to date".
It further says that PEU was granted an unsolicited bid, and that the resulting transaction is illegal in that it violates the Municipal Finance Management Act, the Municipal Systems Act, the Consumer Protection Act, the Promotion of Administrative Justice Act, and the city's own supply chain management policy.
Tshwane and PEU officials deny AfriSake's allegations.
In terms of the outsourcing contract, for a service fee from Tshwane of between 19,5% and 25% of electricity sales...