The Hawks, South Africa’s elite crime-fighting unit, have launched a substantial raid at the Johannesburg headquarters of City Power, a municipal entity embroiled in allegations of fraud and corruption exceeding R500 million. The targeted operation, which occurred on Friday afternoon, primarily focuses on Tshifularo Mashava, who has been serving as CEO since June 2022.Reports indicate that law enforcement officials seized a variety of IT equipment and documentation linked to serious allegations of tender-related impropriety. Initial findings from the investigation reveal alarming instances of gross price inflation, along with payments made to contractors for work that was reportedly never completed.
This revelation underscores a troubling pattern of financial mismanagement that has long troubled the utility.Under Mashava’s stewardship, City Power’s financial practices have come under scrutiny from the Auditor-General. Noteworthy discrepancies have been highlighted, particularly amid the catastrophic collapse of Johannesburg’s electricity grid. Adding to the entity’s woes, it was reported that as of 30 September 2024, City Power faces a shocking R16.3 billion negative bank balance, prompting serious questions regarding fiscal governance and accountability.
Moreover, the investigation, aptly titled “Power Connections,” has disclosed that City Power sustained an unprecedented R2.8 billion loss during the 2023/24 financial year, which concluded on 30 June 2024. This alarming financial trajectory has raised considerable public concern, as residents grapple with the consequences of alleged mismanagement that appears to extend far beyond the management’s upper ranks.
In a response to the raid, City Power issued a statement rejecting the term ‘raid’ to characterise the Hawks’ actions. They suggested that the Directorate of Investigating Priority Crimes merely visited their premises to formally seek information regarding their business operations. Furthermore, City Power disputed claims regarding the seizure of documents and IT infrastructure, as well as any form of interrogation.
Despite this, the entity has indicated its commitment to cooperating fully with the Hawks’ requests for information. Such denials raise further questions about the transparency and accountability of City Power in managing public resources.
As this case unfolds, the potential repercussions of the alleged corruption could resonate throughout Johannesburg, given the critical services City Power provides and the urgent need for trust in public institutions.