City Power gets tough on fraud and corruption

10 May 2016

 

City Power, the City of Johannesburg’s electricity utility, has introduced tough measures to stem the tide of fraud and corruption, which cost the entity millions of rands every year and impact on service delivery.

 

The measures were announced at a media briefing at the utility’s headquarters by board chairman the Rev Frank Chikane, Member of the Mayoral Committee for Environment and Infrastructure Services Councillor Matshidiso Mfikoe and Managing Director Sicelo Xulu on Monday May 9.

City Power has set up a hotline to enable members of the public to report fraud and graft. It has also established the Metering Services Business Unit to deal with all meter-related issues.
Meter tampering and cable theft are two of the biggest challenges facing the entity. The corruption busting plans form part of the entity’s revised business mandate.

MMC Mfikoe announced that starting from June this year, City Power would add other energy sources – such as solar and gas – into the mix for the benefit of especially residents of informal settlements, who will also be provided with gas stoves, gas cylinders and solar geysers. According to the Rev Chikane, the new strategy is a demonstration of the utility’s zero tolerance to fraud and corruption.

To date, more than 850 cases of cable theft, malicious damage to property and illegal metering – involving both domestic and large power users – have been reported to the police. 
About 780 suspects were arrested. Of these, 274 people have been convicted. Chikane said fraud and corruption mostly involved collusion among contractors, customers and some City Power employees.

At least 15 employees have been implicated.Residents can report cases of fraud and corruption on toll free number 0800 00 251 or 24-hour hotline (011) 490-7553, run by an independent service provider.

“Meter tampering and illegal connections are not victimless crimes. On the contrary, they constitute theft on a massive scale against the ratepayers of Johannesburg. These acts amount to theft against the poor communities. Hundreds of millions of rands that could otherwise have been invested to refurbish ageing infrastructure and provide basic services to poor communities are being diverted by such acts to line the pockets of corrupt individuals,” Chikane said.

He also announced that City Power employees would be vetted.

“We’re doing this in the best interest of ratepayers because corruption impacts service delivery,” he said.

City Power also announced structural changes to its operations to improve performance and ensure it is aligned to its new mandate.

In his State of the City Address last year, Executive Mayor Councillor Parks Tau mandated City Power to review its business model, increase its generation capacity, acquire electricity from renewable and alternative sources, reduce its carbon footprint and ensure strategic use of a mix of technologies and energy sources.

Xulu said: “The realignment of City Power’s operational structure favourably positions the utility to realise its revised business mandate. This new operating structure is indicative of an organisation that is agile and responsive to the changing operating environment. This new structure will unlock value, improve customer service, streamline operations and enhance efficiencies.”