The Tshwane municipal council, which is controlled by South Africa’s two biggest opposition parties, is reviewing billions of rands of contacts agreed to under the previous administration, Business Day reported, citing a city councillor.
Contracts to be reviewed in the municipal area, in which the capital Pretoria lies, include a 5 billion rand ($342 million) rental contract for the municipal headquarters, as well as contracts for utility meters, Wi-Fi and broadband provision, the Johannesburg-based newspaper said, citing Lex Middelberg, a councillor for the Democractic Alliance.
The 27-year rental contract excludes annual escalations while the city-wide free Wi-Fi contract was supposed to cost 75 million rand a year but now costs 400 million rand, the newspaper said. The broadband contract has cost 300 million rand and 3 billion rand was lost on the contract for utility meters that can be read remotely, Business Day said.
Tshwane was run by South Africa’s ruling African National Congress until local elections on Aug. 3.