City Power fires warning at ‘internal collaborators’
City Power announced on Tuesday that it had launched disciplinary and legal actions after a forensic investigation exposed financial irregularities.
The utility's spokesperson, Isaac Mangena, said that CEO Tshifularo Mashava confirmed fraudulent procurement, collusion, and inflated invoices caused financial losses.
Fifteen employees face disciplinary action, with one facing prosecution.
Payments to implicated contractors have been frozen.
The probe also linked internal collusion to cable theft.
"We have been relentless in our efforts to clean up City Power’s systems. This investigation confirmed what we had long suspected—there were individuals within and outside of the company exploiting weaknesses for personal gain. That some of the challenges we are dealing with are very close to home. We will not tolerate such behaviour as it robs the city and its tax-paying citizens,” said Mashava.
Mashava added that City Power would be reviewing its internal control environment to ensure that the gaps that the Auditor-General flagged and the recent investigation are closed to avoid recurrence.
She said that the utility is committed to ensuring that every cent is accounted for and spent correctly.
"The net is closing in on all internal collaborators who are actively contributing towards reversing the gains we have made in trying to improve the quality of services to the residents of Johannesburg. We are sending a strong message to anyone who thinks they can manipulate the system—we are coming for you.”
