By Everson Luhanga
- A forensic investigation has exposed massive financial fraud at City Power.
- Employees and contractors colluded to inflate invoices and steal from the company.
City Power has launched a full disciplinary and legal process after a forensic investigation exposed serious financial irregularities within the organisation.
The probe, ordered by CEO Tshifularo Mashava, revealed widespread fraud in procurement and payment processes, leading to major financial losses.
City Power spokesperson Isaac Mangena said the report was finalised and handed to the CEO on 7 March. However, before the company could act, it was leaked to the media and external parties.
“The investigation uncovered fraudulent job numbers, duplicate approvals and collusion between employees and contractors, which resulted in inflated costs and unnecessary spending,” said Mangena.
In one case, an employee approved payment for a mini-substation that already belonged to City Power. Another instance saw contractors invoicing for equipment sourced directly from the company’s own stores.
Mangena said this conduct violated the Municipal Systems Act’s Code of Conduct for municipal staff.
The internal probe was launched on 18 October 2023 after Group Executive for Operations, Charles Tlouane, raised concerns about procurement and invoicing. A forensic audit, led by Chief Audit Executive Sandy Makola, confirmed deep-rooted corruption.
“The Auditor General also flagged issues in City Power’s contracting system and recommended tough action against those responsible,” Mangena added.
Mashava vowed to clean up the organisation, saying: “This investigation confirmed our suspicions—some of the problems we face are coming from within. We won’t tolerate this, as it robs the city and its people.”
The investigation has already led to major action:
- 15 employees are facing disciplinary proceedings, with one set for criminal prosecution.
- Several contractors have been implicated, and their payments have been frozen pending further analysis.
- The probe has raised suspicions that some of these corrupt dealings are linked to cable theft and infrastructure vandalism.
Mangena said City Power has ramped up efforts to fight theft and corruption, with a focus on both internal staff and service providers.
Pictured above: City Power’s CEO Tshifularo Mashava
Image source: City Power
