Another day, another probe

Johannesburg’s City Power is once again under the microscope as the Hawks, South Africa’s Directorate for Priority Crime Investigation, visited the utility’s headquarters this week. The focus: a controversial R67 million contract for electricity transformers that were allegedly paid for but never delivered in 2023.

City Power spokesperson Isaac Mangena emphasized that the visit was part of a standard investigation, not a raid. “The Hawks had previously served City Power with a formal Request for Information. We continue to cooperate fully and provide all necessary information,” he said, clarifying that crime-fighting teams often return to gather additional details as investigations unfold.

A contract gone wrong

The probe, ongoing since 2024, centers on procurement irregularities flagged in City Power’s operations. Last year, the Auditor-General highlighted serious internal control weaknesses, urging a closer look into the utility’s processes. Subsequent investigations by City Power uncovered collusion between employees and service providers, duplicate approvals, fraudulent job numbers, and breaches of procurement protocols. These lapses reportedly resulted in significant financial losses for the utility.

Social media reactions have been swift, with many residents expressing frustration over City Power’s governance issues, especially given Johannesburg’s persistent electricity challenges. Users noted the irony of a public utility losing millions while many households face load-shedding and high electricity bills.

Cooperation and transparency

Mangena stressed that City Power is committed to transparency. “These visits are part of the lawful investigative process, and we welcome the Hawks anytime,” he said. This echoes a statement from July when the utility denied reports of a “raid” and reaffirmed cooperation with authorities.

Experts say this case underscores the ongoing struggle of South African municipalities to maintain robust governance structures. Professor Waldo Krugell of North-West University noted, “Cases like these highlight the critical need for stricter oversight and accountability in public utilities. When procurement processes fail, the burden ultimately falls on citizens who pay for these services.”

The Hawks’ investigation is expected to continue in the coming weeks, with authorities likely to request further documentation and interviews with relevant personnel. Meanwhile, City Power must grapple with the dual challenge of restoring public trust and tightening its internal controls to prevent similar incidents in the future.

Johannesburg residents are watching closely, aware that transparency and accountability are key not just for the utility’s bottom line, but for the reliability of power supply across the city.

{Source: The Citizen}

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