City Power fires another allegedly corrupt employee
The City has fired its second employee in a week over alleged misconduct related to R126m contract to build a substation in Eldorado Park
10 March 2019 - 18:13
byKarl Gernetzky
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Johannesburg's City Power has dismissed another of its employees for alleged misconduct related to work done with contractor Setheo Engineering.
This is the second employee within the last week dismissed as a result of collusion with the contractor, who allegedly received R88m for incomplete work at the Eldorado Park substation, MMC for environment and infrastructure services Nico de Jager said on Sunday.
Two directors of Setheo Engineering were arrested in 2017, for alleged fraud and corruption. The National Prosecuting Authority however withdrew the case from the court roll.
Johannesburg Mayor Herman Mashaba has written to recently appointed NPA head Shamila Batohi over the withdrawal of this case, among others.
The City maintains Setheo received the contract via fraudulent Absa bank guarantee which led the City to believe that they had the balance sheet to handle the project.
Setheo Engineering couldn't immediately be reached for comment on Sunday, but has denied wrongdoing, and has been reported as saying its work was ahead of schedule until payment difficulties hobbled its operations.
De Jager said on Sunday that the City was proceeding with the project, but had faced delays. The project was now being overseen from within the City of Johannesburg, rather than through contractors, and the dismissed employees had been involved in project management, he said.
City Power had returned R50m to the the City of Johannesburg's fiscus in the past financial year, due to savings on procuring materiel for various projects, said De Jager.
City Power is a municipal entity that is wholly owned by the City of Johannesburg, but it has an independent board.
It contributed about a third of the city's direct revenue in the 2017/2018 financial year, and is by far the largest line item in the city's budget - receiving about R15.7bn during that period.
City Power has been a major target of the City of Johannesburg’s anti-corruption unit.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
City Power fires another allegedly corrupt employee
The City has fired its second employee in a week over alleged misconduct related to R126m contract to build a substation in Eldorado Park
Johannesburg's City Power has dismissed another of its employees for alleged misconduct related to work done with contractor Setheo Engineering.
This is the second employee within the last week dismissed as a result of collusion with the contractor, who allegedly received R88m for incomplete work at the Eldorado Park substation, MMC for environment and infrastructure services Nico de Jager said on Sunday.
Two directors of Setheo Engineering were arrested in 2017, for alleged fraud and corruption. The National Prosecuting Authority however withdrew the case from the court roll.
Johannesburg Mayor Herman Mashaba has written to recently appointed NPA head Shamila Batohi over the withdrawal of this case, among others.
The City maintains Setheo received the contract via fraudulent Absa bank guarantee which led the City to believe that they had the balance sheet to handle the project.
Setheo Engineering couldn't immediately be reached for comment on Sunday, but has denied wrongdoing, and has been reported as saying its work was ahead of schedule until payment difficulties hobbled its operations.
De Jager said on Sunday that the City was proceeding with the project, but had faced delays. The project was now being overseen from within the City of Johannesburg, rather than through contractors, and the dismissed employees had been involved in project management, he said.
City Power had returned R50m to the the City of Johannesburg's fiscus in the past financial year, due to savings on procuring materiel for various projects, said De Jager.
City Power is a municipal entity that is wholly owned by the City of Johannesburg, but it has an independent board.
It contributed about a third of the city's direct revenue in the 2017/2018 financial year, and is by far the largest line item in the city's budget - receiving about R15.7bn during that period.
City Power has been a major target of the City of Johannesburg’s anti-corruption unit.
gernetzkyk@businesslive.co.za
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