City Power Launches Legal Process To Eradicate Fraud And Corruption
City Power in Johannesburg says it has launched a comprehensive disciplinary and legal process to eradicate fraud and corruption within the organisation. This comes after a forensic investigation uncovered serious financial irregularities.
City Power CEO Tshifularo Mashava says the investigation revealed that some employees had approved payments for contractors invoices that contained equipment sourced from City Powers own stores.
The investigation which was initiated in October 2023 has led to the identification of 15 employees who will be subject to disciplinary action, with one employee facing criminal prosecution.
City Power spokesperson, Isaac Mangena explains, One of the contractors invoiced City Power for a mini substation that already belonged to the entity, with the approval of a manager. This contravened the Code of Conduct for Municipal Staff Members contained in Schedule 2 of the Municipal Systems Act. The internal investigation was initiated on 18 October 2023, following concerns raised by our Group Executive for Operations, Charles Tlouane, regarding procurement and invoicing processes. A thorough forensic audit was authorized and conducted by our Chief Audit Executive, Sandy Makola, revealing systemic gaps in our procurement framework.
