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IOL News
2 days ago
- Business
- IOL News
eThekwini Municipality denies awarding contracts for smart meters amid allegations of wasteful expenditure
eThekwini Municipality denies purchasing smart meters from seven companies, saying the procurement process is still ongoing. Image: Willem Phungula eThekwini Municipality has denied awarding seven companies to supply electricity smart meters. In a written response to the story that the Independent Media published last week, the city's spokesperson, Gugu Sisilana, said the municipality was not aware of differing quantities being placed across suppliers; therefore, dismissing the assertion of wasteful expenditure. Sisilana said the procurement process is still ongoing. 'The allegations of wasteful expenditure, which are not corroborated by any evidence, are not true. This is due to the fact that the procurement process for electricity meters is still ongoing through the Supply Chain Management process. We are not aware of differing quantities being placed across suppliers,' she said. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading Despite the city's denial and information obtained from the city's website, it was revealed that indeed the companies were awarded. Independent Media also saw purchase orders matching the companies on the city's website. Sources within the municipality have described the decision to award all the companies as an attempt to avoid awarding the tender to a qualified supplier with the lowest quote. The source said the only possible reason for this was that the officials wanted kickbacks from the highest bidders. In May 2024, the National Treasury approved the RT29 national transversal for smart metering. The Treasury approved seven companies for the city to choose from when buying these smart meters. In the purchase orders, the city ordered 2,000 smart meters from a particular supplier, which cost R2,591 per unit, whereas the other supplier's unit price was R1,645. One provider charged R2,218 per item, while the other charged R1,811. The city had to pay R5.9 million for 2,000 smart meters from the highest-priced supplier, which likewise had a unit price of R2,600. The source said the city also ordered non-smart meters for R1,996 per unit, which totalled R4.5 million for 2,000 units. It is not clear why the city needed non-smart meters and which customers will be supplied with them, whereas others use smart meters. Among the companies are two giant cellular network companies. In contrast to non-smart meters, which require personnel to physically visit the site and disconnect when consumers have circumvented them or established unauthorised connections, smart meters may be switched off by city officials from the office, the source claimed. 'This is another wasteful expenditure the city has incurred, and there is 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,' said the source. The municipality has been in the headlines for incurring costs that many view as wasteful, stemming from court cases it has lost. It was recently forced to pay a supplier more than R20 million, which was an interest that had accumulated from the court appeals it had finally lost. The supplier had initially demanded R30 million, which the city disputed but lost the appeal.

IOL News
5 days ago
- Business
- IOL News
Fingers pointed at eThekwini Municipality over alleged wasteful expenditure on overpriced smart meters
The eThekwini Municipality's procurement of water meters has come under scrutiny Image: Supplied 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. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading 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

IOL News
6 days ago
- Business
- IOL News
eThekwini Municipality under fire for expensive smart meter purchases
eThekwini Municipality could face another backlash for purchasing costly smart meters, leaving cheaper ones of the same quality. Image: Willem Phungula eThekwini Municipality could be in hot water again for an apparent wasteful expenditure after procuring electricity smart meters from the highest bidders instead of the lowest. In what sources have described as an attempt to avoid awarding the tender to a qualified supplier with the lowest quote, the city decided to buy smart meters from all seven suppliers at once. The source said the only possible reason for this was that the officials wanted kickbacks from the highest bidders. In May 2024, the National Treasury approved the RT29 national transversal for smart metering. The Treasury approved seven companies for the city to choose from when buying these smart meters. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad Loading In the purchase orders seen by Independent Media, the city purchased 2,000 smart meters from a particular supplier, which cost R2,591 per unit, whereas the other supplier's unit price was R1,645. One provider charged R2,218 per item, while the other charged R1,811. The city had to pay R5.9 million for 2,000 smart meters from the highest-priced supplier, which likewise had a unit price of R2,600. The source said the city also ordered non-smart meters for R1,996 per unit, which totalled R4.5 million for 2,000 units. It is not clear why the city needed non-smart meters and which customers will be supplied with them, whereas others use smart meters. According to the source, the distinction between smart and non-smart meters is that the former can be turned off by city officials from the office, while the latter require staff to travel to the location and disconnect in cases where customers have bypassed them or made illegal connections. 'This is another wasteful expenditure the city has incurred, and there is 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,' said the source. The city had not responded to the questions sent to its communications team on Wednesday. The municipality has been in the headlines for incurring costs that many viewed as wasteful, emanating from the court cases the city had lost. It was recently forced to pay a supplier more than R20 million, which was an interest that had accumulated from the court appeals it had finally lost. The supplier had initially demanded R30 million, which the city had disputed but lost the appeal.


Hans India
26-05-2025
- Business
- Hans India
Monsoon, global and domestic macros to steer markets
Amidst heightened volatility triggered by weak U.S. bond auctions and rising treasury yields sparking a global risk-off sentiment, fresh Trump tariff tantrums and some renewed FII selling; Indian stock market witnessed modest losses during the week ended. Benchmark indices the Nifty and the Sensex ended the week with a decline of 0.7 per cent at 24,853 and 81,721 respectively. Market action will largely hinge on the behaviour of foreign institutional investors (FIIs). Last week FII sales amounted to Rs11,591 crore. The FII long-short ratio fell from 42.37 percent to 32.99 percent, reflecting a cautious turn among big market players. Indian market remained resilient, buoyed by strong buying from domestic institutional investors (DIIs) and retail participants. Crude oil prices continue to be a key market factor, given their influence on inflation trends. The Indian rupee snapped a three- day losing streak to appreciate by 50 paise to close at Rs 85.45 against the US dollar over the weekend. The rebound was driven by a sharp decline in the dollar index, strong domestic equities, and improved global risk appetite, even as foreign fund outflows and elevated crude prices continued to exert pressure. The dollar index, which tracks the greenback against six major currencies, fell 0.60 per cent to 99.36, weighed down by lower US. Treasury yields and renewed demand for riskier assets. In the US markets, the biggest weekly decline for stocks since early April is again testing the risk appetite of everyday investors. Trump's 'rush' towards giving boost to crypto currencies is raising fears of possible forex volatility in coming weeks. Moody's downgrade of the US credit rating from 'Aaa' to 'Aa1,' citing a ballooning federal deficit and a $36 trillion national debt, pressured the US dollar below the 100 mark as it underscored growing concerns over the country's economic outlook and fiscal sustainability. Gold rallied more than 5 per cent, reaching a two-week high of $3,366.5 per ounce, driven by a weaker dollar and persistent safe-haven demand. The rally was further supported by a surge in Chinese gold imports despite high prices and increased geopolitical tensions in the Middle East. The metal spiked sharply on Friday following Trump's latest tariff threats targeting the EU and Apple. In near term, Indian market direction will be dictated by macro-economic data like India GDP data, progress of monsoon, the US federal budget, inflation figures, and weekly jobless claims. Trump's renewed tariff threats will remain center stage, keeping risk appetite subdued. IPO Corner: After a small hibernation, the primary market is going to be busy next week with a total of nine initial public offerings (IPOs) worth more than Rs 6,900 crore, including four from mainboard segment. This is the first time in the current year that four public issues from the mainboard segment are opening in a single week, as last this was seen in December 2024. The improved market sentiment from the second week of April seems to be boosting the primary market mood. It is pertinent to observe that the Nifty surged 14 percent and the Nifty Midcap 100 index gained more than 20 percent so far from April lows. Companies like Schloss Bangalore and Aegis Vopak Terminals are leading the return with sizable public issues, though most firms are opting for modest valuations and trimming their offer-for-sale portions to suit current investor appetite. In the mainboard segment, Brookfield-backed Schloss Bangalore, which operates hotels, palaces and resorts under The Leela brand, will be the first to open its Rs 3,500 crore maiden public issue next week, with price band of Rs 413-435 per share. The Aegis Vopak Terminals that operates storage terminals for liquefied petroleum gas plans to raise Rs2,800 crore, at the upper end of price band of Rs 223-235 per share. Prostarm Info Systems plans to raise Rs168 crore. The UPS & inverter manufacturer has fixed price band at Rs95-105 per share. Scoda Tubes, the stainless-steel tubes and pipes maker aims to raise Rs 220 crore and has set price band at Rs 130-140 per share. Observers believe if the sentiment remains positive the number of IPOs launch in the coming months could increase substantially as more than 60-65 companies including LG Electronics India, NSDL, Brigade Hotel Ventures, Credila Financial, Sri Lotus Developers, Caliber Mining and others are ready with SEBI approval. Over 80 companies, including startups like Zepto, PineLabs, Lenskart, and PhonePe, are in different stages of IPO approval. SEBI is hopeful of resolving pending concerns around the long- delayed NSE IPO. If stability continues, a strong wave of listings is expected between September 2025 and February 2026, 'pulling away' funds from the secondary market. FUTURES & OPTIONS / SECTOR WATCH Tracking the volatility in the underlying cash market, derivative segment also witnessed sharp whipsaw movements in several stock futures. Despite market closing on a positive note over the weekend it closed the week relatively flat. The combined market valuation of six of the top-10 most valued firms eroded by Rs 78,166.08 crore last week. The Nifty slipped 0.67 per cent for the week, while the Bank Nifty was down 0.08 per cent. The coming week will be a monthly F&O expiry week. In the options market, prominent Call open interest for Nifty was seen at the 25,000 strike, while the notable Put open interest was at the 24,500 strike. For Bank Nifty, the prominent Call open interest was seen at the 55,500 and 56000 strikes, whereas notable Put open interest was at the 55,000 strike. Implied volatility (IV) for Nifty's call options settled at 15.03 per cent, while put options conclude at 15.95 per cent. The India VIX, a key market volatility indicator, closed the week at 17.26 per cent. The Put-Call Ratio Open Interest (PCR OI) for the week was 0.79. Only if Nifty clears 25,150 market can see a quick rally toward 25,500. But if the index slips below 24,500, expect a sharp sell off. If 24,500 holds, adopt buy on dips strategy. Keep leveraged exposures at modest levels, a cautious outlook is advised for the present. Savvy funds are accumulating PSU Banks (many are available cum dividend at attractive yields). Buy PNB, Canara Bank and UCO Bank. Coming week may yet test traders' patience, as no clear direction is emerging on the stage, leaving market players searching for stronger signals amid all the noise. Stocks looking good are Axis Bank, Ashok Leyland, BHEL, Jio Financial, NHPC, PNB and Union Bank. Stocks looking weak are Biocon, Colgate, Cummins, HUDCO, Jubilant Food, Patanjali and Shree Cements. (The author is a senior maket analyst and former vice- chairman, Andhra Pradesh State Planning Board)