The City of Tshwane says the controversial 2012 Peu/TUMS smart metre contract remains a stumbling block in rehabilitating the city’s finances.
Executive Mayor Cillers Brink says the city pays R91 million a month to SARS for outstanding VAT payments.
Brink has briefed the media in Tshwane. He says while he believes the city’s financial status is recoverable, he remains concerned with the liabilities that came with cancelling the contract.
The terms of the contract were allegedly hidden from council by the previous ANC administration.
The smart contract was declared unlawful and set aside in 2017 by the High Court in Pretoria with the service provider instructed to remove the metres.
Brink says SARS is now demanding more payment.
“In the past 3 years the city learnt that apparently, we owe SARS outstanding VAT payments on this unlawful contract for the period of 2012-2015. And in the meantime, penalties and interest has accrued on this account. At present the city is paying R91 million a month on this ball which is a massive squeeze on our chest and SARS is now demanding even bigger payments.”
