The City of Ekurhuleni has announced significant progress in its efforts to recover a massive revenue shortfall stemming from electricity meter irregularities, a scandal that was under investigation by slain auditor Mpho Mafole prior to his assassination.
Mayor Nkosindiphile Xhakaza, addressing the media at a briefing in the metro’s Germiston headquarters, stated that interventions have already successfully recouped nearly R400 million of the estimated R2 billion deficit. The shortfall was identified due to inadequate revenue collection within the metro’s electricity department.
“The strategy is yielding significant results,” Mayor Xhakaza reported. “Firstly, we tackled the root cause by focusing on the integrity of our billing system.”
The mayor detailed that through significant investments and by returning the function to its parent department, the accuracy of the city’s automated meter reading system has now reached 97%.
The matter initially came to light after an interim report into the revenue shortfall was handed to Mayor Xhakaza in April of this year. The investigation prompted the immediate suspension of an official.
An internal disciplinary process related to the irregularities is now at an advanced stage, though the mayor confirmed it has been delayed by legal challenges from the implicated officials.
“We instituted decisive consequence management which resulted in the suspension of the CIO,” Xhakaza said. “There is [a] current and ongoing disciplinary hearing taking place.” He added that despite multiple attempts to avert the process through the courts, the officials have lost their cases “with cost” and the hearing is proceeding.
The drive to recover funds comes amidst the shadow of the murder of Mpho Mafole, the auditor who was investigating the financial discrepancies. Mafole was killed in a drive-by shooting.
While the metro leadership asserts it is turning a corner, opposition party the Democratic Alliance (DA) has welcomed the recovery efforts but disputes the official figure. DA caucus member, Fana Nkosi, claimed the actual shortfall is higher than the reported R2 billion.
“Actually it’s more than 2 billion rand because as of the fourth quarter the shortfall was 4 billion rand in energy,” Nkosi stated, adding that the party looks forward to the full amount being recovered.
The City of Ekurhuleni maintains it is on track with its strategy and is working to recover an additional R700 million. Mayor Xhakaza has assured residents that those implicated in wrongdoing will be held accountable.
