Ekurhuleni municipality’s multimillion-rand electricity revenue shortage has deepened with the discovery that someone in the municipality’s information and communication technology (ICT) department has been producing unauthorised electricity tokens.
These tokens, which TimesLIVE Premium understands are valued at millions of rand, were discovered by the council’s energy department, according to an insider at the metro.
“What was discovered is that during testing of the system people within ICT were producing valid tokens that were linked to active meters connected to consumers — something that is not supposed to happen,” the source said.
“We also picked up that the amounts linked to these transactions were greater than the R20,000 limit that was set.”
These revelations come as the city is conducting an independent investigation into dubious electricity revenue losses that run into billions of rand.
In the first quarter of the current financial year, the city calculated that its electricity revenue losses were R2bn, Jongizizwe Dlabathi, the mayoral committee member responsible for finance, said this week.
“Because this was material, we then brought a report to the attention of the mayoral committee and it agreed in that meeting that we need to follow through on this to determine the root causes.
“It was quite clear that there are weaknesses in our meter readings, particularly for our large users,” he said.
Dlabathi said the losses could be attributed to several factors related to a previous decision to move the city’s billing function from the energy department to ICT.
These include the discovery of just over 1,900 faulty meters, manipulation of 1,600 municipal accounts belonging to ratepayers, as well as the deletion of accounts.
When it announced the forensic investigation last week, the city also revealed that it had placed ICT head Moloko Monyepao on precautionary suspension pending the outcome of the forensic investigations.
“This decision arises from serious allegations of mismanagement related to financial losses incurred by the city, primarily due to issues around inaccurate billing systems, interim meter readings, account manipulations, insufficient administrative oversight and poor management of business systems,” the city said at the time.
But Monyepao is fighting his suspension and has filed an application at the labour court to have the suspension declared invalid and unlawful and to have it overturned so he can return to work.
In his application Monyepao said he fell victim to political fighting and removal of people “perceived as obstacles to prevalent looting” in the municipality. He said he resisted efforts by his colleagues in the city’s top leadership to appoint an external service provider to manage billing, which had been a headache for the city long before billing was moved to ICT.
“Unbeknown to me, when I was trying to assist the city I was stopping the gravy train for others.
“It seems very senior persons have been involved and may have been benefiting from the remote metering contract which I decided should be terminated and for the ICT department to take over,” he said.
Monyepao said no allegations of misconduct were made against him.
“What was just circulated is that the city was losing billions.
“It was reasoned that since the ICT department was in charge of the billing system then it must be that there is wrongdoing within the department. However, no specifics are being provided. It is all smoke and mirrors.”
Monyepao further alleged the process that led to his suspension was unlawful and irregular in that it did not comply with the disciplinary code for senior managers of 2010, which requires that the decision to take action be a council decision and that there must be clear allegations against him.
In his case, he said there was no council resolution that he be suspended, nor was there any evidence that then acting city manager Kagiso Lerutla was delegated by council to suspend him. Monyepao also said he was never furnished with detailed reasons for his suspension.
“To date, I am not aware of any allegations which the city or the municipal council has levelled against me,” he said.
The city, through its spokesperson, confirmed that it has opposed Monyepao’s application, adding that he had been furnished with details of allegations against him in line with legislation, but said it could not disclose this due to ongoing litigation.
“The forensic investigation is comprehensive and ongoing, with significant billing and revenue irregularities resulting in losses amounting to approximately R2bn. The city is expediting this process, but cannot provide an exact completion date,” the municipality said in a statement.
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