Sicelo Xulu speaks at a media briefing, 5 November 2013, in Johannesburg, where it was announced that City Power had been cleared of all allegations of fraud and corruption relating to a tender for prepaid meter boxes. Picture: Michel Bega
In a statement on Monday, the Democratic Alliance said it had learnt with dismay of the appointment of Sicelo Xulu as the CEO of the SA Institute of Electrical Engineers (SAIEE).
The party’s Gauteng leader, John Moodey, claimed Xulu has been tainted by serious corruption and mismanagement allegations from his time as the managing director of City Power, the City of Johannesburg’s power utility.
“Under his leadership, City Power’s governance and management systems were eroded by corruption. This in turn stifled the City Power’s ability to deliver quality services to the residents of Johannesburg.”
Moodey would write to the president of the SAIEE, Dr Hendri Geldenhuys, calling for the immediate removal of Xulu from his position.
“In addition, the DA calls for the SAIEE to conduct an investigation into the circumstances around Mr Xulu’s appointment into this important role.”
They said Xulu was removed from his position at City Power in July 2017 following the conclusion of a forensic report into widespread corruption and mismanagement allegedly costing the public billions.
This emanated from a multibillion-rand smart meter tender that was awarded to Vivian Reddy’s Edison Power Group, Moodey said.
“It was no secret that Vivian Reddy was a close ally and friend to Jacob Zuma. In another twist, the DA has learnt that Xulu is also the nephew of Jacob Zuma.”
Moodey said the weak corporate governance and corruption that festered at City Power under the leadership of Xulu was highlighted by the alleged gross mismanagement of the Eldorado Park and Hopefield substation contracts, where millions of rands had been paid to a “dodgy contractor”.
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“Two directors of the company were arrested in 2017 for colluding with City Power officials and receiving payments exceeding R88 million for work that was never completed in the building of the Eldorado Park substation and refurbishment of the Hopefield substation. They had secured the contract through a fraudulent bank guarantee which led the City to believe that they had the balance sheet to handle the project.
“The SAIEE’s mission is to provide ethical leadership to the electrical engineering discipline and one of its objectives is ‘to promote and uphold the professional standing of members of the Institute and to provide career guidance for younger members’.
“To think that Sicelo Xulu is now seen fit to lead the SAIEE is an indictment on this important institution. This is only made worse given the enormous challenges our country is facing when it comes to an uninterrupted power supply and ending the deep-rooted corruption at Eskom.”
Moodey also called on Geldenhuys to explain his comments at the time of Xulu’s appointment since he was quoted in the media saying that the SAIEE was aware of the allegations against Xulu and had conducted serious investigations, but “no evidence was found that indicated in any way that he has acted dishonestly in his previous job”.
“I have spoken to the Mayor of Johannesburg, Herman Mashaba, who has confirmed that the SAIEE made no effort to contact the City to verify or request information on the forensic report which made damning findings against Mr Xulu.
“On top of this, the City of Johannesburg opened a criminal case against Mr Xulu following the conclusion of the forensic investigation. This criminal case is currently under investigation by the Hawks.”
He said Xulu had appeared on eNCA’s “The Fix”, interviewed by Karima Brown and Peter Bruce, unpacking some of the challenges facing Eskom.
“The fact that this individual is provided with such a platform by the SAIEE is a disgrace and calls into question their commitment to providing ethical leadership in this important sector.
“For every day that Mr Xulu continues in this role, the SAIEE is suffering irreparable harm. Not only is the Institute failing its membership, but the entire country as we desperately look for integrity in this sector and solutions to the myriad of challenges facing Eskom.”
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