City Power official being probed over kickbacks

The board of City Power has suspended its general manager, Percy Mphahlele, following allegations of using his son’s company to receive kickbacks from companies doing business with the power supplier.

The decision was taken at a virtual meeting last week after it emerged that Mphahlele was among several City Power executives being investigated by the City of Joburg’s (COJ) group forensic investigations unit (GFIU).

City Power spokesperson Isaac Mangena confirmed the suspension, which came into effect on Thursday.

“The suspension is to allow the company to conduct a thorough investigation into the serious allegations levelled against Mr Mphahlele,” said Mangena.

Mphahlele, who runs capital projects at City Power, is being probed after the GFIU received a tip-off and bank statements showing he was using his son, Prince Mphahlele’s company, Hlelele Power Projects, to receive kickbacks from City Power service providers allegedly appointed to projects under his control.

Other allegations being investigated by the GFIU include claims that Mphahlele was one of the owners of ABC Motsepe League club Baberwa FC, alongside Freddy Raphahlelo, the owner of an electrical company called F&J Electrical which is doing business with the City.

According to a whistleblower’s report, the two used the money earned from City Power’s projects to fund the club’s operations.

Hlelele Power Projects allegedly received over R6-million in payments from companies doing work for the COJ. Mangena said the probe involves internal and external individuals and companies.

Sunday Would could not reach Mphahlele at the time of going to print yesterday.