Pretoria – The City of Tshwane has clarified the issue surrounding the affidavit it filed in the Peu smart meter court case, in which it referred to the risk of being placed under administration.
Mayoral spokesman Samkelo Mgobozi said acting city manager Lindiwe Kwele referred to the risk of the city being placed under administration owing to the onerous obligations to Peu.
The city is still obliged to make payments to the service provider despite the deal being cancelled more than a year ago.
“The Constitution and national legislation are very clear about the grounds under which a city can be placed under administration. We want to reiterate that none of those grounds are present in the capital,” Mgobozi said.
The previous ANC government had left the city with a legacy of financial mismanagement, including the smart meters deal.
“But the city is able to meet its financial obligations as and when they become due.
“And we are confident that sound financial management, including seeking redress in the Peu matter, will further improve the city’s financial position. We will be seeking interim relief from the court to adjust the terms of a previous court order which practically compels the city to pay Peu for services on the 13000 meters which it installed.”
This risk of administration would only arise if the city did not take corrective financial steps,” Mgobozi said. “We will consider filing a supplementary affidavit to clarify the city’s position to the court.”