Business 21.5.2017 08:42 am

Hawks to investigate ‘corrupt’ City Power contractor in Eldorado Park

Johannesburg mayor Herman Mashaba.

Johannesburg mayor Herman Mashaba.

‘I was shocked at the details of corruption, fraud and nonpayment,’ says Mayor Herman Mashaba.

The Directorate for Priority Crime Investigation (the Hawks) has agreed to prioritise an investigation into an allegedly corrupt City Power contractor in Eldorado Park, City of Johannesburg mayor Herman Mashaba says.

Mashaba said he and the head of the city’s internal forensic investigations unit, Shadrack Sibiya, held an urgent meeting on Saturday afternoon with the national leadership of the Hawks, including acting head Lt-Gen Yolisa Matakata.

“This follows serious allegations of corruption being brought to my attention relating to a contract awarded to build a new electricity substation in Eldorado Park,” he said.

On Friday Mashaba met subcontractors who were owed R1.8 million by the contractor.

“I was shocked at the details of corruption, fraud and nonpayment detailed by them. This week tensions rose at the City Power substation in Eldorado Park when employees of subcontractors protested against the contractor and threatened to burn the substation down.”

Community leaders of Eldorado Park and surrounds prevented the attempted destruction of the substation which was used to supply electricity to Eldorado Park and surrounding areas, he said.

“The contract to build a new substation in Eldorado Park is worth R126 million. Despite receiving a significant remittance from the city, thus far totalling R66 million, the contractor has failed to deliver on a number of specific tasks which have already been paid for.

“I am extremely grateful that the leadership of the Hawks agreed to a meeting at such short notice and have also agreed to prioritise an investigation into this matter,” Mashaba said.

Working together with institutions such as the Hawks was vital in ensuring that corrupt individuals faced the full might of the law and that justice was served.

“I am committed to ensuring that legal action is taken against the contractor for the recovery of monies owed to the residents of this city. Furthermore, we will pursue criminal charges against the contractor and any city officials found wanting.

“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,” Mashaba said.

– African News Agency (ANA)

 

today in print