TWO City Power officials were suspended on June 8, after they were both accused of involvement in alleged corruption relating to a contract awarded in 2015 for the construction of a new substation in Eldorado Park, worth R126 million.
The City has also opened a criminal case with the South African Police Services in relation to the matter.
City of Jo’burg, Executive Mayor, Clr Herman Mashaba said the suspensions follow serious allegations of corruption brought to his attention after employees of sub-contractors connected to the construction project protested against City Power’s main contractor and threatened to burn the substation down. Community leaders of Eldorado Park and surrounds prevented the attempted destruction of the substation, which is used to supply electricity to Eldorado Park and surrounding areas.
“Upon meeting with sub-contractors, I was shocked at the details of alleged corruption, fraud and non-payment detailed by them. It was uncovered that, in February, almost R66 million was paid to the service provider without any physical work having been done.
“I would like to thank the City’s Internal Forensic Investigations Unit, led by General Shadrack Sibiya, for the work which they have done in investigating this matter. I am especially grateful to the leadership of the Hawks for agreeing to prioritise this investigation and working with General Sibiya’s team.
“Working together with all institutions within the criminal justice system, such as the Hawks, is vital to ensuring that corrupt individuals have nowhere to hide in the City. I remain committed to ensuring that legal action is taken against the contractor for the recovery of monies owed to the residents of this city. Corruption has no place in this administration and we will work tirelessly, and in collaboration with institutions such as the Hawks, to ensure that the residents of Johannesburg receive the quality services they deserve,” he said.
When the CHRONICLE contacted City Power spokesperson, Vigil James, he said that as it stands, this is all the information until there is an update.
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