Project manager at the centre of R126 million incomplete Eldorado Park substation arrested
Setheo Engineering, is a company that was awarded a contract by City Power in 2015 for the construction of a new substation in Eldorado Park, worth R126 million.
Brighton Chifamba, a project manager from Setheo Engineering briefly appeared in the Specialised Commercial Crimes Court in Palmridge today. He is expected to appear in court again for a formal bail application on Monday, 19th October 2020.
Setheo Engineering, is a company that was awarded a contract by City Power in 2015 for the construction of a new substation in Eldorado Park, worth R126 million. An investigation conducted by the City’s Forensic and Investigation Service (GFIS) department uncovered that, in February 2017, almost R66 million was paid to the service provider without any physical work done.
It is alleged that two City Power officials, Maete Thoka and Godfrey Mulaudzi who were both project managers colluded with officials from Setheo Engineering and ensured that invoices that were submitted were paid without any physical work done on the substation.
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The two officials have since been dismissed. The matter was brought to the City’s 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 EldoradoPark and surrounding areas. It is also alleged that Setheo Engineering submitted a fraudulent bank guarantee totaling just over R14 million.
The City then requested ABSA Bank to verify the authenticity of an ABSA guarantee submitted. An investigation by Absa revealed that the bank guarantee was indeed fraudulent. It further revealed amongst other things that Setheo Engineering holds no accounts with Absa, the account number mentioned in the guarantee does not exist, and that the Absa logo was copied and pasted from an unknown source. Corruption has no place in the City of Johannesburg.
The City 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.
The City would also like to encourage people to report any fraud and corruption activities through our 24hour tipoff hotline 0800 002 587 or visit the GFIS offices situated at 48 Ameshoff Street in Braamfontein.
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