Auditing company denies employees are bribed by residents
A municipal source told the Courier that a sub-committee had been established to investigate the claims of 'bribery' and would only comment once the sub-committee had completed its findings.

Claims made by Councillors that employees of an auditing company hired to stamp out illegal electrical connections in Endumeni are bribed to keep offenders ‘switched on’ are yet to be substantiated.
So says Andrew Hancock of Rio Ridge Electrical. He was reacting to a Courier article published on July 17 where comments made by Councillors Bongiwe Mbatha and Mayor Thulani Mahaye that employees were paid to re-connect residents who were made to have illegal connections in their homes.
“No evidence has been found, neither is it forthcoming.
“Regarding such allegations, the contractor does not tolerate unethical conduct from its staff members and strict disciplinary processes are used to eradicate and deal with any proven violation,” Mr Hancock said.
“The figure of 295 relates to illegal connections that have been identified and removed. They are not tampered meters removed as is stated in the article. There is a clear distinction between illegal connections and tampered metering.
“Tampered meters identified and dealt with amount to 2 672 as at the time of the meeting. All amnesty customers have been attended to.
“This information was not included in the article.
“The article refers to “40 meter boxes replaced”.
This is incorrect. No such figure was stated anywhere in the hand-outs or verbally. Meters replaced amounted to 775.
“All these figures were readily available and are contained in handouts which were provided freely at the meeting.” The Courier has tried in vain to obtain a copy of the ‘free handouts’. An official from Technical Services said he had ‘lost his copy’ while another official was on leave when the Courier asked for official comment after the meeting.
“One Councillor made certain allegations and was requested to provide specific details to assist in investigations. These details have yet to be supplied. It would appear that this alleged information was available some time prior to the meeting and yet it was not seen fit, in the interests of all involved parties, to make it available at any time prior to the meeting, or since.
“The statement in the article, that the electricity losses have been cut from R18 million to R12 million, differs from the figures stated in the meeting, by the Speaker. The figures stated were that losses have been cut from R23 million to R12 million since the auditing started.
“This positive and substantial saving was not highlighted. Since the meeting available figures indicate theft losses have reduced by a substantial amount in excess of R8 million, having steadily increased from prior to 2013 and peaking in 2014 at R26.8 million.
“The Councillors were urged to wait for the financial figures to be finalised by the municipality so that financial facts can be discussed rather than unsubstantiated amounts.”
The Courier has tried in vain to obtain a copy of the ‘free handouts’. An official from Technical Services said he had ‘lost his copy’ while another official was on leave when the Courier asked for official comment after the meeting.
Speaker Mdluli had reminded Councillors at the meeting that ‘we know that there are individuals within the community who go after the contractors when they have disconnected and reconnect them for a fee.”
He also reminded them in the light of this, not to be too quick to accuse the contractor.
Mr Hancock said in a statement that ‘another Councillor claimed that the contractor had “made no difference”.
Such a statement is clearly inaccurate. A little research would have established the facts. R26.8 million to R18.8 million reduction in losses is substantial.
Based on the auditing figures:
Tampering constitutes approximately 29% of the residences.
Amnesty applicants accounted for approximately 11%. (Included in the 29% above).
If one adds the illegal connections dealt with one reaches an approximate total of 31%, losses through tampering and illegal connections.
If one adds the faulty meters changed it brings the total loss percentage to approximately 36%.
“Another major contributor to continuing losses is the evidence that during the course of the continued auditing process, re-tampering is occurring prolifically.
“Actions to remedy ongoing electricity theft have been proposed. Certain proposals were contained in the handout documents at the meeting.”
A municipal source told the Courier that a sub-committee had been established to investigate the claims of ‘bribery’ and would only comment once the sub-committee had completed its findings.



