![Tlokwe council](https://images.caxton.co.za/wp-content/uploads/sites/117/2015/07/Capture2.png)
Despite ongoing calls to explain the rationale behind a controversial tender, the Tlokwe City Council has remained bull-headed in its stance.
The tender raised eyebrows among opposition parties when the municipality signed a three-year contract with Future Phambili Petroleum earlier this year.
It states the company is to supply the municipality with 12 000 units per month, costing the council R20.12 per litre. At the time of sealing the deal in mid-February, the maximum national legislated retail price of paraffin was R8.33 per litre, excluding the cost of packaging. As from 1 July, the maximum was R10.14 per litre.
The DA raised their concerns following Tlokwe executive mayor, Kgotso Khumalo’s second state of the city address on 29 May which included reference to the 3500 households that would benefit from the free basic alternatives energy supply.
The majority of their objection, as issued on 10 June, is based on section 152 of the Constitution which stipulates that municipalities must ensure the provision of services to communities in a sustainable manner and structure its budget to give priority to the basic needs of the community.
Neels Coetzer, financial chairperson of the DA in the North West added that, “The ANC-governed municipality in Tlokwe could have supplied nearly three times more paraffin to the poor if they paid the regulated price of R7.00 per litre.”
As a result, for the first time in 33 years, the budget was not adopted by all in Tlokwe Municipality. The DA proposed a motion based on the fact that the budget is in contravention of Regulation 17 of the Municipal Budget and Reporting Regulations.
However, the budget was passed by the ruling party’s majority as the opposition declined to approve it. “We wanted to receive and consider the reports relating to the awarding of contracts for the supply of paraffin to indigent households as well as for the smart metering.
In response to the outcry, the municipality said the contract would be on the agenda of the council meeting of Tuesday, 30 June. But, it was announced, the ‘free alternative basic energy initiative project tender’ would be discussed during a ‘closed session.’
Following further enquiries, as initiated by the Potchefstroom Herald, the Tlokwe City Council spokesperson, Willie Maphosa issued a media release, dated 1 July.
“A report from the municipal administration regarding the supply of the free basic alternative energy to local indigent residents who are not connected to the grid, was presented to a council session held on Tuesday, 30 June 2015.” The release goes on to confirm and outline the costs associated with the project.
“The project is designed to provide each family with the following:
Paraffin stove – R164.99
Paraffin lantern – R39.99
Fire extinguisher – R249.99
Delivery to the households – R11.80
Monthly supply of 20 litre Laurel paraffin – R402.26 (R20.12 per litre).
The R20 per litre charges include packaging, delivery, sealing of packaging, primary storage, handling, goods in transit insurance as well as the cost of funding finance.
It concludes by saying that a committee, led by the MMC for Community Services, Ina Stoltz, should scrutinise the submission and advise further during the next council meeting.
* In another twist, Engen has since launched an investigation into the potential source of the supply and/or the possibility of its drums being used by a third party without authorisation to supply paraffin.
This comes after it was brought to their attention that the Tlokwe Municipality had allegedly been supplied with Engen Laurel paraffin. An appropriate course of action will be determined upon finalisation of the investigation.
* Several residents have also complained about the quality of the paraffin citing burning eyes, billowing smoke and sometimes huge, unexpected flames.
The Beeld newspaper has since sent the paraffin to the NWU Engineering department for further testing. It was revealed on Tuesday that at least 40% of the paraffin contains aromatic substances which are harmful in nature and can cause cancer.