Hawks Investigate Suspicious Payments at Johannesburg City Power

Natalie Nyathi

The Hawks, South Africa’s Directorate for Priority Crime Investigation, are currently investigating suspicious payments at Johannesburg City Power. While some reports initially described a “raid,” City Power has clarified that the Hawks visited their headquarters yesterday, to deliver a formal request for information.

According to reports, the investigation focuses on roughly R500 million in questionable payments made to contractors, allegedly with the approval of City Power executives. EWN reported that the investigation relates to questionable payments to contractors amounting to about R500 million, with one of these payments inflated by more than 1000%.

Several specific instances are under scrutiny. One involves R335 million spent on maintenance projects that failed, despite warnings that the invoices were dodgy. Another case concerns a contract for electrical infrastructure that was allegedly inflated by over 1000%. City Power was initially quoted R8 million but reportedly paid R100 million for the same supply. Additionally, City Power is being questioned for paying R55 million to an external company to handle managerial duties, even though senior staff were already in place to manage those responsibilities.

City Power spokesperson Isaac Mangena stated that the Hawks’ visit was not a formal search-and-seizure operation. He emphasized, “There was no raid, there was no confiscation of any documents, of any IT equipment or even files and there was no interrogation of any of our executives. We can, however, confirm that members of the Hawks did visit City Power and delivered a formal request for information to the business. We will, as City Power, cooperate fully with this lawful request.”

The investigation comes at a critical time for City Power, which has been struggling with financial difficulties and allegations of mismanagement. The utility has also faced allegations of fraudulent payments and nepotism involving its CEO, Tshifularo Mashava. Mashava, who was appointed CEO in 2022, has previously stated that she has been working to turn around City Power’s fortunes, claiming, “Personally, since I took over, we have flipped the organisation upside down internally.”

The Hawks have not yet commented on the investigation.