The Directorate for Priority Crime Investigation (Hawks) has conducted a raid on City Power, Johannesburg’s municipal electricity utility, seizing documents linked to alleged irregular payments and procurement fraud. The investigation centers on suspicious contracts, including one that reportedly ballooned from R8.6 million to R100.6 million without justification.
Deepening Corruption Probe
According to News24 journalist Khaya Koko, who has been tracking the case, the Hawks are scrutinizing procurement irregularities during the 2023/24 financial year, particularly involving inflated maintenance budgets and outsourced consultancy work.
Key findings under investigation include:
-
Gross inflation of prices in tenders.
-
Fraudulent purchase orders issued to contractors.
-
Questionable payments authorized by City Power’s CEO, Tshifularo Mashava, including consultancy contracts and a R3.7 million “business breakfast” event.
Auditor General’s Warnings Ignored?
The raid follows scathing reports from both the Auditor-General and the City of Johannesburg’s finance department, which flagged:
-
R5 billion in irregular expenditure by City Power.
-
A R16.3 billion negative bank balance accumulated over years of financial mismanagement.
Koko noted that while red flags were raised, corrective action appears lacking, prompting the Hawks’ intervention.
Will the Investigation Widen?
So far, the raids have targeted only City Power, but concerns remain over whether the probe could extend to other municipal departments. The Hawks have not confirmed if further searches are planned.
What’s Next?
As the investigation unfolds, pressure mounts on City Power’s leadership to account for the alleged misuse of public funds. With Johannesburg residents enduring frequent power outages and tariff hikes, the outcome could have major political and service delivery implications.
