Manager arrested after firm was paid R66m for City Power substation but did no work

A project manager from Setheo Engineering briefly appeared in the specialised commercial crimes court in Palm Ridge on Monday.

He is expected to appear in court again for a formal bail application on Monday next week.

The City of Johannesburg said the company was awarded a contract by City Power in 2015 to build a new substation in Eldorado Park, worth R126m.

An investigation conducted by the city’s forensic and investigation service department found that in February 2017 almost R66m was paid the service provider without any physical work being done.

It is alleged that two City Power officials colluded with officials from Setheo Engineering to ensure that invoices were paid.

The two officials have since been dismissed.

“The matter was brought to the city’s attention after employees of subcontractors connected to the construction project protested against City Power’s main contractor and threatened to burn the substation down,” said the city in a statement.

Community leaders of Eldorado Park and surrounds prevented the attempted destruction of the substation.

TimesLIVE