City officials suspended for alleged corruption in City Power contract
15 June 2017
This afternoon, I was informed of the suspension of two City Power officials, both of whom are 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 two officials were suspended on the 8th of June 2017. The City has also opened a criminal case with the South African Police Services in relation to the matter.
The suspensions follow serious allegations of corruption brought to my 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 the service provider without any physical work 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.
Issued by Karabo Tledima, Media Specialist in the Private Office of the Mayor, City of Joburg, 15 June 2017
