Note to Broadcasters: Please find attached soundbites in English and Afrikaans by Gerhard Strydom
Following the DA’s successful intervention into the questionable Gas-to-Power Plant deal in Matlosana, the deal has been halted pending full public consultation and legal compliance.
This comes after the Executive Mayor, Fikile Mahlophe, submitted an item requesting approval for a Gas-to-Power Plant project to be transferred to the municipality during a Special Council Meeting held on 6 May 2025. He also proposed entering into a Public-Private Partnership (PPP) with the company Urban Blue. This project is said to involve converting gas into electricity, although this was not fully explained in detail to the Council.
This after the recent announcement by the Executive Mayor regarding the Gas-to-Power Plant project, as reported in the newspapers, which came as a surprise to Council members.
Investigations revealed that the company’s business address is connected to a Sushi restaurant in Kuilsrivier, Cape Town, their website address was created six months ago while claiming to have been doing business since 2017, and the company is in the process of deregistration due to non-compliance with the Companies Act.
The DA could not support this proposal due to several unanswered questions about the company involved and the municipality’s non-compliance with prescriptive legislation. Specifically, we highlighted the municipality’s failure to comply with Section 120 of the Local Government: Municipal Finance Management Act, 56 of 2003.
Section 120 requires, among other things, a public consultation process before any PPP may be considered by Council. Following the DA’s intervention, the item was subsequently withdrawn for further investigation.
The DA in Matlosana recognizes the critical importance of complying fully with all applicable laws and regulations. We reaffirm our commitment to supporting and advancing development initiatives that deliver tangible benefits to our community.