By Johnathan Paoli
Elite investigators from the Hawks raided the Johannesburg headquarters of City Power on Friday as part of a sweeping investigation into alleged corruption involving irregular payments and inflated contracts totalling more than R500 million.
The utility’s CEO, Tshifularo Mashava, has emerged as a central figure in the probe.
The Directorate for Priority Crime Investigation (DPCI), also known as the Hawks, descended on City Power’s offices to gather information related to the case.
Although initial reports described the operation as a raid, City Power has denied this in a media statement issued on Friday night.
“City Power Johannesburg refutes media claims that a raid and seizure took place at our headquarters. There was no raid, no confiscation of documents, files, or IT equipment. And there was no interrogation,” the utility said in a statement.
“We can, however, confirm that members of the Directorate for Priority Crime Investigation (Hawks) did visit City Power and delivered a formal request for information (RFI). City Power will cooperate fully with this lawful request.”
According to internal investigation files seen by News24, the Hawks are scrutinising three high-value transactions approved under Mashava’s tenure.
These include allegations of price inflation, duplicate payments, and unauthorised appointments of contractors.
At the centre of the investigation is a R335 million payment for maintenance projects that City Power’s own internal assessments found were either substandard or never completed at all.
Documents suggest that staff had flagged the invoices as suspicious before payment was made, but executives proceeded with the transaction regardless.
Another case under review involves the procurement of electrical infrastructure.
City Power was initially quoted R8 million for the supply—but ultimately paid R100 million, representing a staggering markup of over 1,000%.
Investigators suspect deliberate cost inflation and possible collusion between City Power officials and external service providers.
In a third instance, the utility reportedly contracted a private consulting firm to perform managerial functions already assigned to senior internal staff.
The appointment cost R55 million, with investigators questioning both the duplication of duties and the inflated contract value—raising suspicions of fraudulent intent.
Mashava, who was appointed CEO of the city-owned utility in June 2022, is now reportedly the main focus of the Hawks’ investigation.
Her tenure has been dogged by controversy, with previous allegations of financial mismanagement, nepotism, and corruption.
In September 2024, the Auditor-General flagged City Power for serious governance failures, highlighting irregular expenditure and a deterioration in service delivery.
Mashava has not issued a public response to the Hawks’ investigation or the corruption allegations.
City Power, which is responsible for delivering electricity to South Africa’s economic hub, has long battled operational challenges, including frequent outages, billing issues, and ageing infrastructure.
The Johannesburg City Council has yet to release an official statement.
However, opposition parties are expected to table urgent motions calling for Mashava’s suspension and an independent forensic audit of all contracts signed during her tenure.
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