City Power outlines efforts to eradicate fraud and corruption

20th May 2016

By: Mia Breytenbach

Creamer Media Deputy Editor: Features

  

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City Power plans to strengthen its corruption-busting initiatives as the utility realigns its operations with its revised business mandate.

Speaking at a media briefing in Johannesburg earlier this month, City Power chairperson Reverend Frank Chikane noted that the multi- pronged anticorruption campaign, Operation Clean-Up, sought to ramp up the utility’s fight against the scourge of corruption and misconduct by some of its officials (of which 15 had been identified), service providers, contractors and customers.

“. . . corruption and fraud impact negatively on the delivery capacity of the business,” he emphasised, highlighting that the anticor- ruption drive would focus on high-risk areas around metering, such as in applications for new meters, mapping of meters, relocation and reconnection of existing meters, as well as the procurement processes within City Power’s supply chain unit.

Metering was identified as a high-risk factor, which entailed corrupt officials and service providers offering customers stolen meters that have been tampered with, swindling customers who submit smart meter applications, while offering illegal reconnections to customers that have been disconnected because of nonpayment.

To date, City Power had lodged 851 cases with the South African Police Service and the prose- cuting authorities involving cable theft, malicious damage to property and meters, including domestic and large power users.

About 782 arrests have been made, with 274 cases having led to convictions. Chikane noted that about 707, or about 83%, of the 851 cases, involved cable theft, while 8% of the cases dealt with metering issues.

The warrant for arrests for 36 cases were still pending, while about 67 cases were in the legal process. Of the 44 cases that were remanded, about 25 were struck off the roll. Additionally, 33 cases would be subject to further investigation, while 257 cases were withdrawn, City Power MD Sicelo Xulu pointed out, adding that City Power believed it was succeeding with the majority of the cases.

Chikane, nevertheless, urged customers to report fraud and corruption incidents to City Power and warned that customers who collude with officials and service providers to carry out these unauthorised transactions would be liable to criminal prosecution.


The power utility further announced structural changes to its operations to improve performance and ensure that the business was aligned to its new mandate of being an energy company.

This follows the announcement of the utility’s changed mandate by Johannesburg Mayor Parks Tau in his State of the City Address last year, which would had resulted in City Power’s reviewing its business model, increase its generating capacity and acquire electricity from renewable and alternative sources, in addition to traditional avenues. He also mandated the utility to reduce its carbon footprint and ensure strategic use of a mix of technologies and energy sources.

The utility was mandated to achieve these objectives while maintaining business sustainability and without incurring additional costs to the consumer, Xulu explained.

To complement these changes, City Power has established the metering services business unit, which is responsible for the end-to-end management of metering. The various functions within the business associated with meter manage- ment have been consolidated within this unit to allow for a “one-stop shop” on all meter-related matters.

A focus of the unit was also to ensure that the meters were functioning and that all infor- mation was updated at the City of Johannesburg’s revenue department so that customers can receive accurate billing.

“The realignment of City Power’s operational structure favourably positions the utility to realise its revised business mandate [and] is indicative of an organisation that is agile and responsive to the changing operating environment. This new structure will unlock value, improve customer service, streamline operations and enhance efficiencies.”

While Xulu acknowledged that the new metering unit would not enable the utility to the extent where it required no assistance, he highlighted that, since rolling out smart meters, City Power read more than 100 000 meters remotely.

Notwithstanding remote reading, three independent service providers had been contracted to manually read the balance of the meters.

Focusing on the gains made in metering since the strategies had been implemented, Xulu noted that City Power achieved a 90% read rate for smart metering, which was “commendable”, while for time-of-use customers, City Power has achieved a 100% read rate. “These were some measures of progress,” Xulu concluded.

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

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