Today, I led an oversight visit to the Hopefield and Eldorado Park Substations, where construction work has ground to a halt.
Present during this visit were councillors from different political parties, representing the Section 79 Oversight Committee; the City Manager; representatives from the Board of City Power; as well as the MMC for Environment and Infrastructure Services.
These two substations highlight the weak corporate governance and corruption at City Power which has for too long been allowed to rob our residents of much needed service delivery.
A City Power contractor was awarded a R168 million contract to build a new substation in Eldorado Park. The contractor has failed to deliver on the contract despite receiving R66 million from the City to date.
Making matters worse, the same contractor was awarded a similar tender worth R44 million to manage and conduct repairs at the Hopefield Power Station. The contractor has been paid R22 million by the City to date. Despite this payment having already been made, we estimate R1.5 million worth of work has been done.
Two City Power officials, who were project managers, have already been suspended.
The City has also opened a criminal case with the South African Police Services. Last week, I wrote to the HAWKS requesting feedback in relation to their investigation.
I conducted an oversight visit to the substations last week and found that minimal work had been delivered by the contractor. I am deeply concerned that the contractor has received huge payments upfront without work being done.
Following my visit, I immediately called for this oversight visit to the substations today. During the oversight visit the following was agreed:
- The contractor will provide a copy of an alleged guarantee of R44 million which it provided for the Hopefield contract by 12pm today. City Power officials claim to have no knowledge of said guarantee;
- City Power will confirm whether a R14 million guarantee provided by the contractor for the Eldorado Park substation was given to the City prior to the City making any payment to the contractor;
- City Power is to compile a report detailing the awarding of the tender, payments made and work done to date; and
- The Section 79 Oversight Committee will conduct their own independent investigation and compile a report to be tabled before Council.
Had City Power’s governance and management systems not been eroded by corruption, there would have been proper management of these projects and quality services would have been delivered to the residents of these communities.
Our residents are sick and tired of the countless power outages they experience on a monthly basis. It is widely known that our aging electricity infrastructure has received little to no attention over the past two decades, and it is vital that we turn this sad state of affairs around.
Going forward, our priority will be to bring stability to City Power and ensure that that projects are properly managed and implemented to ensure better service delivery to our residents.
“I will ensure that those found wanting, following these investigations, will face the full might of the law and that any stolen money is returned.
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