City Power (CP) has launched a full-scale disciplinary and legal process after a forensic investigation exposed financial irregularities within the utility.
The investigation, sanctioned by CP CEO Tshifularo Mashava, uncovered serious breaches in procurement and payment processes, weakening internal control systems and leading to financial losses.
The report was finalised and submitted to the CEO’s office on March 7. However, before the utility could act on its findings and recommendations, it was leaked to external parties, including the media.
The investigation findings revealed serious irregularities in the procurement system, including fraudulent job numbers, duplicate approvals and collusion between employees and contractors, which caused CP significant financial losses, with fraudulent invoices unnecessarily inflating costs.
In some instances, the investigation found that some implicated employees approved payments of contractors’ invoices that contained equipment sourced from CP’s stores.
One contractor billed CP for a mini-substation it already owned with managerial approval. This action contravened the Code of Conduct for Municipal Staff Members contained in Schedule 2 of the Municipal Systems Act.
“The internal investigation was initiated on October 18, 2023, following concerns raised by our group executive for operations, Charles Tlouane, regarding procurement and invoicing processes.
“A thorough forensic audit was authorised and done by our chief audit executive, Sandy Makola, revealing systemic gaps in our procurement framework. The Auditor General (AG) also flagged some of these contracting flaws and recommended harsher sanctions on those implicated.
“We have been relentless in cleaning up CP’s systems. This investigation confirmed what we had long suspected – individuals in and outside of the company were exploiting weaknesses for personal gain. Some of the challenges we are dealing with are close to home. We will not tolerate such behaviour because it robs the city and its tax-paying citizens,” said Mashava.
The investigation resulted in these actions:
• Fifteen employees were identified for disciplinary action, with one facing criminal prosecution;
• Several contractors were implicated, so payments to them were frozen. A deeper analysis of their dealings with CP is underway;
• A comprehensive audit of all expenditure and contracting work is ongoing to detect and eliminate further fraud;
• Internal controls were tightened to prevent a repeat of such misconduct, including centralising procurement approvals and stricter monitoring.
“Our suspicion and deep concern is that this collusion between our employees and contractors could be at the centre of the scourge of cable theft and vandalism that is crippling our infrastructure. In the past year, we intensified the fight against theft and vandalism, with a key focus on internal staff and service providers. All indications at that stage were that those responsible for stealing and destroying our infrastructure had a deep knowledge of our operations and network. They had possible inside information allowing them to target certain vulnerable cables and transformers.
“Between July 2024 and February 2025, we arrested 279 suspected criminals, including 11 employees. Three were dismissed as part of a broader strategy to clean house and bolster the security of essential services. Over the weekend, two more suspects were apprehended, including one of our contractors,” she said.
The two men were nabbed on Rifle Range Road on March 14. The suspects, 37 and 52, were found opening an electrical supply pillar box without a valid authorisation or necessary documentation, including job cards or wayleaves. One individual had a CP access card, while the other had no identification.
Verification by the project area manager confirmed that neither suspect had permission to be on site. The pair were handcuffed and handed to the local police station and face charges of tampering with essential infrastructure.
These arrests are part of a sustained crackdown that has seen CP, in collaboration with law enforcement agencies, intensify efforts to dismantle syndicates targeting Johannesburg’s energy infrastructure, marking a 99% increase in arrests compared to this period last year.
“It is clear that the collusion between contractors and employees extends beyond the scope of our investigation. We believe they collaborate with some of these syndicates, destroying our network and causing untold damage to the city’s economy.
“Meanwhile, the outcomes of the forensic probe, which unearthed financial irregularities and fraud, come at the back of a report from the AG, which previously flagged financial and operational inefficiencies within municipal-owned entities, emphasising the urgent need for accountability and governance improvements. We are reviewing our internal control environment to ensure the gaps flagged by the AG and the recent investigation are closed to avoid recurrence. CP is committed to ensuring that every cent is accounted for and spent correctly for the benefit of Johannesburg residents.
“The net is closing in on all internal collaborators actively contributing towards reversing the gains we have made trying to improve the quality of services to the residents of Johannesburg. We are sending a strong message to anyone who thinks they can manipulate the system – we are coming for you.
“Whether you are an employee or a contractor, if you are found engaging in fraudulent activities, you will face the consequences,” Mashava warned.
CP is co-operating with law enforcement agencies to ensure swift dealing of criminal elements. The utility will not hesitate to take further legal action against any individuals or entities implicated in corruption. It is worth noting that the CP board supports the executives’ actions against corruption and welcomes the developments thus far. After the investigation is over, the board will receive the final report.
“We are committed to restoring trust in CP and ensuring the public knows we are actively cleaning up the rot within the entity. Those who have stolen from the company have stolen from the people of Johannesburg, which is unacceptable,” Mashava concluded.
