High court cancels City Power's billion rand contract

High court cancels City Power's billion rand contract

City Power has welcomed a ruling by the high court in Johannesburg ordering the cancellation of the R1.5 billion labour contract.

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The matter went to court after City Power CEO Lerato Setshedi became aware of alleged irregularities in tender processes involving the company.


The labour contract involves more than 60 companies contracted to deliver services to do general maintenance of City Power's infrastructure.


The power utility spokesperson Isaac Mangena says some crucial documents in the tender processes were missing.


"Including the fact that the process itself was interfered with and there were some irregularities.


"So, we decided to go to court to ensure we deliver a tender that is fair and ethical."


Setshedi has set up a team to ensure the new tender process is above board and fair.  


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