The managing director of Johannesburg’s power utility City Power has been relieved from all his contractual responsibilities, City of Johannesburg mayor Herman Mashaba said on Monday.
In a statement, Mashaba said a forensic report tabled in front of City Power’s board last week detailed serious misconduct by managing director Sicelo Xulu.
Xulu was placed on special leave in February.
The Board would ordinarily institute a disciplinary hearing, however Xulu’s contract will expire in August and as such the city would not be able to complete a disciplinary hearing, Mashaba said.
Xulu was hence released from all his contractual agreements.
“This decision – which I fully support – will begin the process of restoring good governance and ending corruption at the power utility,” Mashaba said.
“Weak corporate governance and corruption at City Power have for too long been allowed to rob our residents of much needed service delivery.”
Mashaba said he has instructed the city’s forensic and investigation unit to keep all relevant information for possible future criminal charges against city officials implicated.
He said weak governance has been made evident by alleged corruption and gross mismanagement of the Eldorado Park and Hopefield substation contracts.
“Millions of Rands were paid to a contractor who has not performed the work required,” Mashaba said.
“Had City Power’s governance and management systems not been eroded by corruption, quality services would have been delivered to the residents of these communities.”