15 March 2019
CITY POWER COMMITS TO ENSURE COMMUNITY IS PRIME BENEFICIARY IN ELDOS POWER STATION PROJECT
"City Power is committed to resolving the issues pertaining to construction of Eldorado Park substation and ensure residents benefit both in terms employment opportunities and service delivery," City Power CEO Lerato Setshedi said.
In recent weeks several community members have been wondering whether the project would go ahead and if they will be re-hired after the project was stopped in 2015 due to an investigation into corrupt activities at the project.
Setheo Engineering received payments exceeding R88 million for work that was never completed in the building of the Eldorado Park substation. They had secured the contract through a fraudulent bank guarantee which led the City to believe that they had the balance sheet to handle the project.
Several City Power employees were suspended while others have been fired after court and internal disciplinary processes.
"We are committed to restarting the project as soon as possible," said Setshedi. "We are committed to ensure that people who were initially employed before the project was stopped get re-employed and afforded economic opportunities".
Although City Power is in dispute with Setheo Engineering, which is the main contractor hired when the project started, we are currently in talks with other contractors and subcontractors to ensure work starts.
One of the preconditions of entering into any formal contract with contractors and subcontractors, would be that they employ locals starting with those who were previously employed before project got stopped.
"Ours is to protect the interests of the community. They are the custodians of this project," Setshedi added. "Once completed the project will strengthen electricity supply and boost network reliability. It will also provide economic opportunities to the community."
City Power is currently busy considering a process of finalizing Eldos substation project, including completing project scoping for the remaining work, and other Supply-chain management processes.
The contract between Setheo (main contractor) and City Power has been cancelled due to fraudulent activities, and City Power is currently planning to start with a new procurement process for a completion of the substation. This is done in consultation with the community.
City Power has contacted sub-contractors associated with the project to establish what they were contracted for in order to consider whether City Power may contract them when finalizing the construction project.
Issued by City Power
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