Azra Hoosen | ah@radioislam.co.za
20 September 2024 | 13:45 CAT
2 min read

A pilot project to implement smart electricity meters in eThekwini has encountered significant issues, with officials discovering that the devices do not function as intended. The eThekwini metro invested R500 million in the project, awarded to Africa Utility Solutions (AUS) under two contracts, but an internal review revealed that AUS failed to meet technical specifications, leading to the initiation of an investigation.

Thabani Mthethwa, DA Caucus leader in eThekwini, criticises the electricity department as a liability and burden on taxpayers. This comes amid broader concerns about eThekwini’s crumbling infrastructure and poor service delivery.

“We have received information that most, if not all, of these so-called smart meters are bypassed. Customers cannot load their vouchers. Instead of these meters generating income for the city, customers are just getting electricity for free, which is a huge cause for concern because, with electricity and water, that is where the municipality can generate some revenue,” he told Radio Islam.

During a pilot test conducted in May and June 2022 in Avoca, AUS could not successfully connect the meters to the metro’s billing system. Data capturing proved inadequate, and the company faced multiple failures in uploading meter data.

eThekwini officials are now referring AUS’s contracts to the City Integrity and Investigations Unit (CIIU) amid allegations of corruption and potential non-delivery of the meters. A whistle-blower claimed that AUS did not deliver the promised devices and that there were corrupt ties between AUS and municipal officials.

The investigation follows a series of governance issues within eThekwini, where service delivery has declined sharply, prompting leadership changes and partial administration by KwaZulu-Natal officials. The internal audit uncovered irregularities in AUS’s contract awards, including a lack of necessary documentation and recommendations against awarding them the contracts.

“Someone must account for this; some of these meters have been operational for more than a year now. The head of the department must answer for this; the buck stops with the head. He is on suspension, but he must account for this,” he said.

AUS has denied any wrongdoing, asserting that their meters are high-quality and meet specifications. However, the ongoing scrutiny raises serious questions about the procurement process and the future of smart meter implementation in the region.

Mthethwa estimates the revenue loss to be in the hundreds of millions but stated that we will wait for the investigation to unfold to determine the correct amount.

LISTEN to the full interview with Ml Sulaimaan Ravat and Thabani Mthethwa, Democratic Alliance (DA) Caucus leader in eThekwini, here.