The Mayor of Tshwane Kgosientso Ramokgopa in his office during the presentation of the city’s vision to consider the Freedom Chater center as a long-term development project by 2055. photo. Tsheko Kabasia. 05/09/2013. Sowetan / Sunday World.
Sakeliga has urged the public to be wary of new energy minister Kgosientso Ramokgopa over his role in a massive procurement controversy that cost taxpayers billions of rand during his stint as mayor of Tshwane.
Ramokgopa was mayor of Tshwane from 2010 to 2016, when the ANC lost control of the city in the 2016 South African municipal elections.
He was appointed president as the head of the Investment and Infrastructure Bureau after a brief stint in the Gauteng provincial legislature.
He held this position until President Cyril Ramaphosa appointed him Minister of Energy in the most recent cabinet reshuffle.
Ramokgopa was embroiled in a row over a multi-billion rand deal with PEU Capital Partners.
Given what happened, it’s ironic that PEU was first brought in to advise Tshwane on cost-cutting measures, according to a 2017 statement by then-Tshwane Mayor Solly Msimanga.
PEU quickly moved from consultant to service provider after being commissioned to install smart meters in the city.
Irregularities in the transaction threatened a legal challenge to the tender. With that threat, Tshwane entered into a termination agreement with PEU and provided R950 million to its subsidiary.
The North Gauteng High Court overturned the scheme, ruling that all transactions between Tshwane and PEU or its subsidiaries were illegal.
Sakeliga stated that the city made this deal at Ramokgopa’s request, despite warnings from opposition parties and his political superiors.
The money was returned to the city.
However, Sakeliga said R630 million was still paid to PEU for “services rendered”. This is a bill that Tshwane still struggles with.
“Ramokgopa left his office as mayor amid an additional R2 billion in debt to the municipality due to an illegal electricity meter installation and maintenance agreement he had signed,” Sakeliga said.
Mayor’s house renovation
Tswane’s mayor’s house, which was valued at R5 million during Ramokgopa’s tenure, was renovated during Ramokgopa’s leadership at R12 million, according to the Citizen.
The DA-led administration launched an investigation into the renovations, claiming that the work on the property did not justify the money paid for the services performed.
Former Tshwane mayor Solly Msimanga claimed the R12 million had been embezzled by the former ANC administration for questionable upgrades.
The repairs include wall and asphalt improvements, a swimming pool and an automatic irrigation and gate system.
Tshwane proposed to approve the sale of the mayor’s residence, also known as the “house of corruption.”
The City of Tshwane announced in November 2017 that it has sold the mayor’s official home for R5.1 million.
Ramokgopa stated in a 2019 panel discussion “it will be the height of folly to deny that corruption thrived under our watch (as the ANC), so that’s the first admission”.
He confessed that the ANC had stolen and harmed the country’s people.
