(Twitter/ @CityofTshwane)
The Democratic Alliance’s desperate attempt to move away from Eskom and its power outage issues will be put on hold after Tshwane Mayor Randall Williams was accused of flouting municipal legislation.
The city has been experiencing prolonged power outages. This is because of complications that come from the constant on and off that the power goes through as a result of the power cuts. The city has been looking at alternative methods to combat the power outage problem.
On Tuesday, Williams’ attempt to solve the city’s problems was shot down after opposition political parties refused to vote for a forensic report into an unsolicited bid from a company that offered to refurbish and maintain two power stations in Tshwane for R26-billion, which would bind the city in a 30-year contract with the bidder.
The proposal was for Kratos Energy to refurbish two power stations that have not been operating since 2014 and turn them into gas energy supply networks. Williams argued that this would help generate 800 megawatts of electricity to help ease the effects of load shedding.
The ANC, Economic Freedom Fighters (EFF) and DA-coalition partner ActionSA did not agree with the report and objected to the report being adopted and forwarded for public comment.
ActionSA Gauteng provincial chairperson Bongani Baloyi labelled the proposal as illegal and a representation of the bad governance that “multi-party coalitions sought to displace when taking office”.
What’s wrong with the proposal
“The proposal is presented as an unsolicited bid, yet there is no indication on which of the legal requirements this unsolicited bid meets in terms of Section 113(2) of the Municipal Finance Management Act. ActionSA is aware of written concerns raised by provincial and national treasury about the proposal,” he said.
According to the act, for a municipal entity to consider an unsolicited bid, the product being offered must prove to be unique. It must also be beneficial to the municipality and have a cost advantage for the municipality. The reason for the bid must also be approvable by the accounting officer.
The EFF argued that the report does not have sufficient information regarding the amount of power the city is going to receive.
“We have lost confidence in this mayor, and we support the matter being referred to the rules and ethics committee. This report doesn’t even show us if this is less than what we will get from Eskom. What is the purpose of supporting this if it would not save the people of Tshwane money?”
The EFF moved to opening a case against Williams for his influence in the pending contract. They attributed a collapse in service delivery in the city to Williams’ misconduct and the party has also called for his immediate resignation due to alleged meddling in the city’s administration.
On Tuesday, the ANC contended that although the idea was “brilliant”, they did not support how Willams planned to procure the service provider.
The proposed plan was for Kratos Energy to refurbish the Pretoria West and Rooiwal coal power stations, which have been out of operation since 2014, and turn them into gas supply stations.
Williams solicits municipal executives
In a recorded session with senior executive members of the municipality, Williams is heard “soliciting” the executives for their support in council, which was held on Tuesday.
Tshwane chief operations officer James Murphy raised concerns about the company not having experience or being qualified to do the job, however Williams argued that Kratos Energy was a group of “big” companies including Siemens.
“I looked the company up on Google and cannot find it anywhere. Kratos Energy is an Australian company with no experience in the field they are proposing. I am asking the mayor where I can find the information about the company,” Murphy said.
“The consortium is registered and made up of important partners, one of whom has just been granted a tender at the City of Cape Town,” Williams said in response.
In its proposal to the city, Kratos Energy argued that the proposed project or contract would offer the city an opportunity to move away from Eskom’s failures and provide the city with an opportunity to meet its development goals for 2055.
“It does so through seeking to repurpose, redefine and reimagine the ArcelorMittal steel operations as well as the Rooiwal and Pretoria West power station sites into state-of-the-art beneficiation complexes, the likes of which have yet to be seen in the republic. We propose beneficiation of iron ore to finished products cast at foundry’s long closed in the city.
“Through the project, the City of Tshwane will obtain a clean and environmentally friendly source of energy with the added benefits brought by establishing the veneficiation complex. This includes the revitalisation of a currently stagnant ferro-industry and the creation of a novel biomethane industry within the city.
“The concomitant benefits of skills transfer, greening, employment and reputation enhancement can only be achieved through the consortium’s novel proposal,” the proposal reads.
Council withdraws report
Despite the 45-page proposal, ActionSA urged the political parties not to adopt the report. The council withdrew the proposal.
The DA accused the opposition parties, including its coalition partner ActionSA, of opposing the ending of load shedding.
However, Baloyi said in a statement that the DA’s claim was without merit.
“Sustainable electricity supply is a central commitment of our manifesto offer. The supply of electricity does not have to come at the expense of observing the law.
“We trust that the executive mayor and the DA have learned the error of their ways so we can get back on track and find lasting and legal solutions to the electricity woes faced by Tshwane and other cities,” he said.
Responding to the claims, Williams said he did not officiate any unlawful instruction and would continue to strive to end loadshedding in our city, protect our residents and uphold the rule of law.
He said the session was not meant to officiate hiring of the bidders but to “workshop ideas”.
“Today, ActionSA and their EFF allies have sought to accuse me of corruption, smear my name and, most disturbing to me, undermine governance in the city. I will also be consulting my attorneys with a view to take action against the individuals who have defamed me,” he said.
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