SIU to probe City Power managers after allegations of bogus call-outs emerge

The Special Investigating Unit has confirmed they are investigating allegations of corruption levelled against two senior managers at City of Joburg’s power utility, City Power.

The City Buzz has learned that two officials, whose names are known to the paper, are being investigated for allegedly approving ‘bogus’ callouts to two companies amounting to more than R1 million during the month of June alone.

According to a reliable source who is close to the investigation, the two managers allegedly approved 984 and 600 bogus callouts at once, for engineering and electrical companies respectively, purported to have been done in one day. The names of the two companies are also known to the Tribune.

Read: Xulu says City Power still pays him

For the engineering, the source alleged that the transaction amounted to more than R700 000, and R400 000 to the electrical company.

The money paid to the contractors is for costs associated with crane trucks which are used for out of reach electrical work, as well as the driver and his assistant, according to the source.

The source said they have also been accused of colluding with a powerful political figure cum businessman who has been contracted to supply smart meters nationwide. The City Power senior managers are said to have tried to increase the businessman’s contract by R1 billion in August 2016, without going to tender – in spite of the fact that the appointed consultant, who was the responsible decision-maker in this case, was against the extension, said the source.

Read: Bramley resident hit back at City Power

Captain Dubs Medupi of the SIU, confirmed on 31 August that they are investigating the allegations but did not wish to divulge further information.

“I can confirm that the investigation into the allegations of bogus call-outs by City Power officials is currently underway. The investigation is not yet complete but further information will be made available when it is done,” he said.

Joburg Mayor Herman Mashaba, in his reply to questions sent to him on 31 August, said they will also conduct their own investigation. Mashaba said the City receives a number of allegations of fraud and corruption daily, and they will refer the matter to their forensic team to investigate.

“We are not yet aware of your allegations. We are busy with numerous cases of fraud and corruption within City Power. We shall report as we receive evidence of wrongdoing,” said Mashaba in his email reply.

Read: Mashaba shocked by bylaw ignorance

“We have a group forensic team where all received cases are referred to for investigation. At this stage, we are not yet aware of this particular one. [We] will pass [it] on for an official investigation.”

Details: [email protected]

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