City Power MD takes leave while graft probe continues

In the latest instalment of the ongoing investigation into City Power by Joburg mayor Herman Mashaba, City Power’s managing director, Sicelo Xulu, has offered to take leave with immediate effect pending the finalisation of the forensic investigation into allegations of fraud and corruption at City Power.

City Power earlier this month said it was cooperating with the forensic investigation instituted by Mashaba aimed at rooting out corrupt activities in the awarding of tenders at the entity.

City Power board chairman Frank Chikane said auditors Sizwe Ntsaluba Gobodo had the board’s support.

“City Power board welcomes the executive mayor’s initiative, and pledges its full and unwavering support of this process and to the appointed investigating company. The investigators arrived at City Power premises on February 7, 2017 and have commenced their duties,” Chikane said on Thursday.

“In the past four years, the board of directors, in conjunction with the current leadership, developed and implemented a range of interventions to combat the scourge of corruption and fraud. The board has proactively investigated and successfully dealt with a number of cases across the company’s operations.”

Mashaba announced the forensic probe into tenders worth billions of rands earlier this month.

“When I entered office I declared corruption public enemy number one and I am committed to rooting it out of every corner of our city. The days of politicians and officials shamelessly looting public money are over,” said Mashaba.

He said a report on the probe would be available within weeks.

It was announced today by City Power spokesperson Hloni Motloung that the City Power board has approved the request by Xulu to take leave pending the finalisation of the forensic investigation into corruption.

“Based on external legal advice obtained by the board, it remains of the view that the suspension of Xulu is unwarranted and would not be considered appropriate.

“Xulu’s decision to take leave is informed by a desire to defuse any perceived tension between the City Power board and its shareholder, the City of Johannesburg.

“Xulu has advised the board that he has taken the current situation into consideration and the potential impact that this may have on both the board and the business, and concluded that it is best for him to stand aside while this process unfolds. Xulu therefore requested permission from the board that he be allowed to take leave pending the outcome of the investigation.

“The board and Xulu are fully committed to cooperate with the investigation and are hopeful that the investigation is conducted in an expeditious manner and will be finalised within the expected timeframe.”