Thuli eyes Sputla over smart meters

Published Nov 11, 2015

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Pretoria - Public Protector Thuli Madonsela has set her eyes on City of Tshwane mayor Kgosientso Ramokgopa over the ill-fated electricity prepaid smart meter contract with Peu Capital Partners.

Just days after Co-operative Governance and Traditional Affairs Minister Pravin Gordhan instructed Gauteng MEC Jacob Mamabolo to investigate the circumstances around the awarding of the contract, Madonsela disclosed that she was busy with her own investigation into the matter.

But after the city failed to provide required information, Madonsela said she would subpoena Ramokgopa to appear before her in person at her Hatfield offices after her investigators battled to obtain the information from the city.

He will be required to explain why the city failed to furnish her with the “necessary information” related to the controversial contract, which came into effect in 2013 and was terminated in May.

The public protector said the “necessary information” would have assisted her office to conclude the probe into the awarding of the smart meter contract to Peu.

Notably, Gordhan in his request to the MEC, also indicated that information provided by the City of Tshwane did not enable him to reply adequately to the parliamentary questions on the matter. This prompted him to instruct Mamabolo to investigate and report back to him in 90 days.

Madonsela, meanwhile, said her office had been investigating the awarding of the contract to Peu after an undisclosed service provider cried foul.

Her spokesman Oupa Segalwe said the service provider alleged that their company was not considered when the smart prepaid contract was awarded. The company claimed it was the first to submit a proposal to the City of Tshwane on the concept of prepaid smart meters.

In terms of the Public Protector Act, Madonsela has the power to subpoena a person to appear before her to give evidence, or produce any document in his or her possession or under his or her control, which has a bearing on the matter being investigated.

Madonsela has also asked Gordhan to suspend the departmental investigation into the smart meter contract until she had concluded her probe.

She appealed to Gordhan not to duplicate the process, but rather support the finalisation of the investigation and then decide what to do with the outcome.

Madonsela said she recently received another complaint relating to the smart meter contract. On November 4, she met the complainants and advised them on the challenges faced in investigating the matter to date. She also informed them of the subpoenas and hearing as part of the plan to expedite the finalisation of the investigation.

Upon receiving the first complaint, she enquired about the contract, but was told the city had only signed a memorandum of understanding with Peu and hadn't yet awarded the contract.

In October 2013, the contract was subsequently awarded to Peu, but was cancelled this year, with the city citing the deal had a negative impact on its coffers. Despite its cancellation, the city is still paying the contractor, although at a reduced rate, for the 12 900 meters already installed. Ramokgopa earlier announced a process to procure a new service provider.

Segalwe said Madonsela would write to Ramokgopa, requesting that the new contract, which had been advertised as a tender, should not be awarded before the conclusion of the investigation. He added that most of the information required was not forthcoming, because municipal manager Jason Ngobeni indicated it still had to be provided by the relevant head of department. Ramokgopa’s spokesman Blessing Manale said it wasn’t true that the mayor had not provided the public protector with the response required at that time.

“It is our understanding that we have provided the office of the public protector with the response required,” Manale said.

“It is a different matter if the public protector found such response to be insufficient, and in this instance, we are in consultation to explore avenues to make such available as requested and permissible.”

He said Ramokgopa had no reason not to co-operate with Madonsela if subpoenaed. “The mayor will continue to co-operate, whether requested by Madonsela through a subpoena or any other available mechanism.

“We are not at liberty to disclose the content of our correspondence with the public protector and what information the public protector has requested,” Manale said.

Segalwe had also said he couldn’t share the information the public protector asked from the metro.

The deputy general-secretary of Samwu, Simon Mathe, said the union would open a case of corruption against Ngobeni and Ramokgopa for their role in the Peu deal.

The regional ANC Youth League called for Ngobeni to be fired for unlawfully awarding the tender.

In July, cases of corruption and fraud were opened against Ramokgopa and Ngobeni at the Pretoria Central police station by Mafika Mahlangu and Joel Mbatha “on behalf of the people of Tshwane”.

At the beginning of this month, the DA also laid criminal charges against the two over the matter.

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