Parliament – Government was taking legal advice on how to handle the smart meter debacle in the Tshwane metro, President Jacob Zuma said on Thursday.
Addressing the National Council of Provinces, Zuma did not elaborate but said Cooperative Governance and Traditional Affairs (Cogta) minister Pravin Gordhan was looking into the granting and subsequent termination of a smart pre-paid electricity meter contract with service provider PEU Capital Partners.
“The minsiter of Cogta is looking into the matter and taking legal advice on further steps in this regard. Certainly, because we will not tolerate any irregularity if such is found to exist.” Zuma said.
“I know this because the minister has discussed that matter with me.”
The City of Tshwane had already forked out R830 million to the service provider for the installation of a few thousand smart meters before the contract was terminated.
The contract was originally awarded, allegedly after the Treasury voiced concerns about the deal.
Tshwane mayor Kgosientso Ramokgopa has denied claims that the municipality would have to pay penalties for cancelling the contract.
Ramokgopa insists the R830 million was not lost as infrastructure had been rolled out for the project.
African News Agency
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