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City Power board responds to media article

The Board received a list of allegations and afforded the affected officials an opportunity to address the Board on these allegations.

City Power Board of Directors notes the reports in the media with regard to a request to suspend two of its senior officials. While the City Power Board had taken a decision not to engage in public on the above matter, having already explained its decision and reasons for its decision to its shareholder, in light of the reports in the media it has become necessary to publicly clarify the board’s decision.

The board is, at all times, constrained to act in accordance with the requirements of South African labour law, whereby both substantive and procedural fairness requirements must be respected. Once the request was received by the board, the board obtained independent legal advice on how to proceed.

The board was advised that it must act to give effect to such legal requirements. The board wrote to the executive mayor advising of the legal constraints within which the board must act and also requesting further information regarding the allegations so that the board could follow due process for suspension.

The board received a list of allegations and afforded the affected officials an opportunity to address the board on these allegations. It was apparent from the responses of the affected officials that the allegations either prima facie alleged no wrongdoing or were previously investigated by independent persons and no evidence of alleged fraud and/or corruption was found.

The board was advised, by independent legal advice, that the suspensions of these officials in the current circumstance would be unwarranted and unlawful and would expose the company to legal risk. The board then, having applied its mind and acting within the constraints of the legal requirements, could not suspend the affected officials without new substantive information.

The Board of Directors of City Power have a zero-tolerance-based approach to fraud and corruption and reaffirm their ongoing commitment to the fight against corruption. The board is fully supportive of the investigation being undertaken by Sizwe Ntsaluba Gobodo and will continue to ensure the full co-operation of City Power and its staff with this investigation.

The board is also fully committed to act upon any substantive information regarding corruption or maladministration by any City Power official including, the MD, and in the event that information is revealed, which justifies the suspension of any official, the board will act in a substantive and procedurally fair manner.

Yumna Sheik, spokesperson for City Power

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