City Power seeks legal advice on MD suspension

INDEPENDENT legal advice was sought by City Power on whether to suspend its managing director Sicelo Xulu at City of Joburg’s mayor Herman Mashaba’s behest.

Yesterday, the board clarified its position.

Chairman Reverend Frank Chikane said the board of directors had taken a decision not to engage in public on this, having already explained its decision and reasons to its shareholders.

“The board is, at all times, constrained to act in accordance with the requirements of South African Labour Law that both substantive and procedural fairness requirements must be respected. Once the request was received by the board, it obtained independent legal advice on how to proceed.

“The board was advised that it must act to give effect to such legal requirements. The board wrote to the executive mayor advising of the legal constraints within which it must act and also requesting further information regarding the allegations so that the board could follow due process for suspension,” he said.

The board then received a list of allegations and afforded the affected officials an opportunity to address it on these allegations.

“It was apparent from the responses of the affected officials that the allegations either prima facie alleged no wrongdoing or were previously investigated by independent persons and no evidence of alleged fraud and/or corruption was found.

“The board was advised, by the independent legal advisors, that the suspensions of these officials in the current circumstance would be unwarranted and unlawful and would expose the company to legal risk.”

The directors, having applied their minds, and acting within the constraints of the legal requirements, could not suspend the officials without new substantive information.

“The board of directors of City Power have a zero-tolerance based approach to fraud and corruption and reaffirm their ongoing commitment to the fight against corruption.

“The board is fully supportive of the investigation being undertaken by Sizwe Ntsaluba Gobodo and will continue to ensure the full co-operation of City Power and its staff with this investigation.

“The board is also fully committed to act upon any substantive information regarding corruption or maladministration by any City Power official including the managing director and, in the event that information is revealed which justifies the suspension of any official, the board will act in a substantive and procedurally fair manner.”

‘The board is fully supportive of the investigation’