Pretoria - Afrikaans business rights watchdog AfriSake filed an urgent court application on Thursday against the Tshwane metro to reverse its electricity meter contract with Peu Capital Partners.
The application was filed at the High Court in Pretoria.
AfriSake CEO Cornelius Jansen van Rensburg said Peu had been contracted to install electricity meters in approximately 800 000 Tshwane homes.
He said Peu, which was granted an unsolicited bid, had no experience in installing or managing electricity infrastructure in towns or cities.
The 13-year agreement would cost Tshwane residents over R20 million.
“This transaction violates more than 10 laws and regulations, inter alia the Municipal Finance Management Act, the Consumer Protection Act, the Promotion of Administrative Justice Act, as well as (the) metro's own supply chain management policy,” said Jansen van Rensburg.
He said the agreement was an example of the most blatant and corrupt municipal transaction to date.
“Electricity consumers will pay for the smart meters and their infrastructure, but Peu will remain the owner,” said Jansen van Rensburg.
AfriSake believed a similar contract could have been negotiated at a cheaper rate.