City Power dismisses employee in connection with R44m substation corruption

2019-03-05 17:06

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The City of Johannesburg has dismissed a City Power project manager who has allegedly been implicated in corruption involving R44m at the Hopefield substation.

The employee was dismissed on Friday after he was found guilty of misconduct and of colluding with contractors by granting payment for work that had not been carried out, MMC for environment and infrastructure Nico de Jager said.

De Jager said the employee was suspended when City Power initiated an investigation into his involvement in the awarding of the tender. 

He was found guilty of gross negligence in his duties which resulted in financial loss to the City.

ALSO READ: I am not corrupt, says axed City Power managing director

"The contractor involved was awarded a tender of R44m to manage and conduct repairs at the Hopefield substation.

"The same contractor, Setheo Engineering, also received R66m to upgrade the Eldorado Park substation. But work was never done," De Jager said in a statement.

De Jager added that two directors of Setheo Engineering were arrested in 2017 for colluding with City Power officials and receiving payments exceeding R66m for work that was never completed in the building of the Eldorado Park substation.

"They had secured the contract, issued under the previous administration, through fraudulent bank guarantees which led the City to believe they had the balance sheet to handle the project," he added.

The NPA decided to withdraw the case against the directors, De Jager said.

The City has encouraged people to report any fraud and corruption to its 24-hour hotline on 0800 002 587 or to visit its offices.

Read more on:    city of johannesburg  |  johannesburg ­  |  corruption
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