A man contracted to the City of Johannesburg made a brief appearance in the Palm Ridge Magistrate’s Court on Monday facing charges of fraud and corruption.
“The charges relates [sic] to the contract agreement between the contractor and the City of Johannesburg to build a new substation in Eldorado Park worth R126 million,” Gauteng NPA Spokesperson, Phindi Mjonondwane said in a statement on Monday.
“The allegations are such that, despite receiving remittance from the City to the total of R66 million, the contractor failed to deliver as no work was done,” Mjonondwane added.
The matter was postponed for the accused, 49-year-old Brighton Chifamba, to make a formal bail application.
The Gauteng National Prosecuting Authority (NPA) could not rule out the possibility of more arrests in this case.
The accused’s company – Setheo Engineering – was allegedly wrongfully awarded a contract from the City to build the substation, IOL reported.
The publication further reported that two City Power officials allegedly colluded with officials at Setheo Engineering and ensured that the invoices that were submitted, were paid even though there was no work done.
They said City Power project managers have since been dismissed.
According to the Citizen, the City of Johannesburg’s forensic and investigating service (GFIS) discovered in February 2017 that close to R66 million had been paid with no work done.
This came after protests by the employees of sub-contractors connected to the construction project against City Power’s main contractor. Protesters reportedly threatened to burn the substation down
In addition, investigations revealed that the bank guarantee submitted by Setheo was fraudulent.
Chifamba is due back in court on Thursday.