Two City Power project managers, Maete Thoka and Godfrey Mulaudzi, have since been dismissed, after being accused of colluding with Setheo to ensure that invoices submitted were paid, without promised work done on the substation. Picture: Soweto Urban
The project manager linked to the incomplete Eldorado Park substation made his first court appearance in the specialised commercial crimes court on Monday.
Brighton Chifamba from Setheo Engineering has been accused of corruption and collusion, after the company was awarded a contract by City Power in 2015 to construct the substation. The contract was worth R126 million.
The incomplete Eldorado Park substation. Picture: Soweto Urban
Investigations were launched after employees of subcontractors linked to the project protested against City Power’s main contractor. The employees threatened to burn the station down, which was prevented by community leaders from Eldorado Park and surrounding areas.
The protest action resulted in City of Joburg’s forensic and investigating service (GFIS) being called upon, which found that in February 2017, close to R66 million was paid to Setheo Engineering, without any work having been done on the project.
Two City Power project managers, Maete Thoka and Godfrey Mulaudzi, have since been dismissed, after being accused of colluding with Setheo to ensure that invoices submitted were paid, without promised work done on the substation.
The investigation was then escalated to Absa Bank, after allegations of a fraudulent bank guarantee being submitted, worth over R14 million.
Absa found the bank guarantee was fraudulent, that Setheo holds no accounts with Absa as the account number didn’t exist, and the Absa logo was simply photoshopped onto documents, “from an unknown source”.
“Corruption has no place in the City of Johannesburg,” asserted GFIS strategic stakeholder management director, Lucky Sindane.
“The city 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.”
Chifamba is expected to appear in court for a formal bail hearing next Monday.
Residents are urged to report any fraud or corruption-related activities to the city’s 24-hour tipoff hotline, on 0800-002-587, or visit the offices of the GFIS in Braamfontein.
(Compiled by Nica Richards)
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