Mayor hails Eldorado Park community for preventing damage to electricity substation amid contract dispute - Times LIVE
   
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Mon May 29 13:24:20 SAST 2017

Mayor hails Eldorado Park community for preventing damage to electricity substation amid contract dispute

TMG Digital | 2017-05-19 14:37:01.0
Herman Mashaba.
Image by: Gallo Images/Foto24/Mary-Ann Palmer

City of Johannesburg executive mayor Herman Mashaba said on Friday his administration would act against an allegedly corrupt City Power contractor‚ whose employees almost caused major damage last night.

Mashaba said the community leaders of Eldorado Park and surrounds had last night prevented the attempted destruction of a City Power substation‚ used to supply needed electricity to the area.

"This is after employees of sub-contractors protesting against a City Power contractor targeted the substation. The protesters allege that City Power’s contractor has failed to pay R1.8 million to sub-contractors for services rendered."

Mashaba said that given these developments‚ he would personally meet with representatives of the sub-contractors this afternoon with the MMC for Environment and Infrastructure Services‚ Nico de Jager.

 In 2015‚ his office explained‚ the contractor was awarded a contract for the construction of a new substation in Eldorado Park worth R126 million.

"Despite receiving a significant remittance from the City‚ thus far totalling R65 million‚ the contractor has failed to deliver on a number of specific tasks which have already been paid for. This includes: fencing‚ paving‚ high and medium voltage switch gear‚ high and medium voltage power cables‚ completed steel work; and completed building.

"The contractor has also failed to deliver on job creation in the area by effectively sourcing and remunerating local sub-contractors – a requirement of the agreement between City Power and the contractor.

"The City will be launching a full investigation into irregularities surrounding the contract as well as pursue legal action against the contractor for the recovery of monies owed to the residents of this City.

"We will also pursue criminal charges against the contractor and any city officials found wanting."

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