Fingers pointed at eThekwini Municipality over alleged wasteful expenditure on overpriced smart meters

The eThekwini Municipality finds itself under scrutiny once more, amidst concerning allegations of wasteful expenditure following a recent procurement of electricity smart meters.

Officials opted to purchase these devices from the highest bidders rather than the lowest quote suppliers, triggering concern among residents and stakeholders alike regarding potential misconduct and improper financial practices.

Sources indicate that this decision suggests an attempt to bypass a qualified supplier that provided the lowest bid — a move that raises various questions.

In what many perceive to be an alarming indicator of corruption, it has been alleged that officials may seek kickbacks from these more expensive suppliers.

In May 2024, the National Treasury approved the RT29 national transversal contract for smart metering, identifying seven companies for the municipality to choose from for their needs.

However, documents acquired by Independent Media reveal a shocking deviation from standard procurement practices. The eThekwini Municipality ordered 2,000 smart meters priced at R2,591 per unit from one supplier, while another supplier quoted a mere R1,645 per unit. The total cost indicated that the city spent R5.9 million for these overpriced devices.

This instance of poor financial decision-making apparently didn't stop there. The municipality additionally procured non-smart meters at R1,996 per unit, accumulating a further cost of R4.5 million. With the distinction between smart and non-smart meters being that the former can be remotely disconnected by officials, while the latter necessitates physical travel for disconnection, questions loom large over why non-smart versions were even necessary.

A source privy to the procurement process has expressed concern, stating, “This is another instance of wasteful expenditure incurred by the city. There was no valid reason why the officials chose to purchase the same product with the same quality from different suppliers with varying prices. Surely, there is something fishy.”

Attempts to obtain clarity from the municipality's communications team went unanswered as of Wednesday, leaving many to speculate on the motivations behind these decisions.

This incident comes in the wake of previous controversies linked to the municipality’s financial management. Just recently, the city faced a harsh financial penalty, having to pay over R20 million to a supplier, an amount accumulated from interest on a court appeal that the municipality lost. While the initial amount claimed was R30 million, the city disputed the claims but ultimately lost their case.

DAILY NEWS