City Power manager implicated in R44-million scandal dismissed

JOHANNESBURG – The company also received R66 million to upgrade the Eldorado Park substation.


A Project manager at City Power implicated in a R44-million scandal was dismissed from work on 1 March after being found guilty of misconduct and collusion with contractors.

According to a statement by the City of Johannesburg, the employee was found guilty of misconduct and collusion with contractors including granting payment of invoices for work not done at Hopefield substation.

The employee has been on suspension during investigation until he was found guilty of gross negligence in his duties, resulting in financial loss to the City. The contractor, a local engineering company was awarded a tender of R44 million to manage and conduct repairs at the Hopefield substation.

The company also received R66 million to upgrade the Eldorado Park substation. However, no work was done. Two directors of the company were arrested in 2017 for alleged collusion with City Power officials and receiving payments exceeding R66 million for incomplete work. The case was later withdrawn from the court roll.

The company also allegedly secured the contract through fraudulent bank guarantees which led the City to believe that they had the balance sheet to handle the project.

“Corruption is public enemy number one and we cannot allow corruption to steal from our residents. When acts of corruption take place, it undermines the hard work of honest officials in the City and honest taxpaying residents who expect services delivered in their communities,” said MMC for Environment and Infrastructure Services, Nico de Jager.

De Jager encouraged people to report any fraud and corruption activities through the 24-hour tip-off hotline on 0800 002 587 or visit the offices of Group Forensic and Investigation Service situated at 48 Ameshoff Street in Braamfontein.

What other consequences besides dismissal should be faced by officials found guilty of misconduct and corruption?

 

Related article: 

City Power employee dismissed after being found guilty of misconduct

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