JOBURG — City Power 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.
The board of City Power, according to a press release , has approved the request by Xulu. “Based on external legal advice obtained by the board, the board remains of the view that the suspension of Xulu is unwarranted and would not be considered appropriate.
“Based on external legal advice obtained by the board, the board 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,” spokesperson Hloni Motloung said.
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, Motloung said.
“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.”
The City’s Mayor Herman Mashaba made public recently that the independent forensic investigation into City Power tenders valued at billions of rand is underway.
Last week, Anthony Still said he was removed by Mashaba as MMC for Environment and Infrastructure Development, the head of the department that oversees Pikitup, Johannesburg Water, City Power and other service delivery entities because he would not suspend Xulu while investigations into allegations against him were underway.
The Speaker of Council in the City, Vasco Da Gama, said the MMCs serve at the pleasure of the mayor. He added that this was not a sudden move, but that conversations between Still and Mashaba had been underway for months.
He added that this was not a sudden move, but that conversations between Still and Mashaba had been underway for months.
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