Inside the Corruption, Mismanagement, and Fraud Worsening Johannesburg’s Electricity Woes
Johannesburg residents have grown weary of blackouts, but new revelations show that power outages are only the surface-level symptom of a much deeper crisis at City Power.
An explosive investigation by News24 has uncovered alarming levels of mismanagement, illegal recruitment, and fraudulent qualifications within the electricity utility, which the City of Johannesburg owns.
The situation has become so dire that even the municipality itself admits it risks financial collapse. At the core of the crisis? Unqualified senior staff, manipulated procurement processes, and billions lost to fraud and negligence.
Dubious Qualifications & “Illegal” Appointments
One of the central figures in the unfolding scandal is Mmakgomo Mary Sebesho, City Power’s senior manager for acquisition management and enablement. Appointed in October 2023, she is accused of submitting a fake degree from the University of South Africa (Unisa). Sebesho claimed to hold a BCom in Strategic Supply Chain Management, but Unisa confirmed that it has never offered such a degree.
Sebesho isn’t the only questionable appointment. Two other senior managers — Sinenhlanhla Myeza and Aubrey Kunene — are also under fire, with their appointments reportedly violating the Municipal Systems Act. These roles were internally advertised via email in July 2023, bypassing the legal requirement to publicly advertise managerial roles and disclose essential job post information.
These illegal recruitments are now the subject of a South African Local Government Bargaining Council dispute, highlighting how systemic non-compliance has plagued the entity’s leadership.
Rotten Procurement: A Hotbed for Looting
Sebesho’s portfolio involves managing procurement — an area where City Power has bled billions. The Auditor-General’s November 2024 report reveals that the utility suffered net losses of R2.8 billion in the 2023/24 financial year, primarily due to looted maintenance budgets and inflated pricing.
One shocking example: R66.7 million was spent refurbishing infrastructure in Randburg and Roodepoort, areas that continue to experience over 11,000 outage complaints per week. Internal documents show that contractors, in collusion with City Power employees, fraudulently inflated invoices for these failed projects.
Governance in Tatters: No Checks, No Oversight
The Auditor-General’s report placed significant blame on CEO Tshifularo Mashava and the executive team for failing to implement proper internal controls. The AG stated that City Power leadership consistently flouted laws and failed to prevent mismanagement, allowing a culture of corruption to flourish.
Worryingly, none of the new senior managers appointed in 2023/24 have received the legally required minimum competency training, which ensures procurement decisions are cost-effective and constitutional. This is a violation of the Supply Chain Management Framework under the Municipal Finance Management Act.
Crumbling Infrastructure, Soaring Complaints
City Power receives thousands of calls daily from angry residents left in the dark — quite literally. The deteriorating infrastructure is a direct result of years of corruption, poor project management, and embezzlement of public funds. Earlier reports also exposed R335 million being spent in just six months on frivolous items like air fresheners, BIC pens, and mops — all at inflated prices.
Despite these mounting issues, City Power spokesperson Isaac Mangena insists the utility uses a third-party vetting agency for background checks. However, he refused to disclose the company’s name, raising further questions about accountability.
What Happens Next?
Facing immense public pressure and media scrutiny, City Power announced in April that it had dismissed five employees, suspended several managers, and launched probes into internal fraud. Yet, the scale of the rot suggests these are merely band-aid solutions to a structural disease.
Johannesburg residents deserve more than damage control. Without urgent reform, transparency, and legal accountability, City Power’s failure could drag the entire municipality into a financial abyss — leaving South Africa’s economic heartland quite literally powerless.
Also read: North West Scholar Transport Crisis: Students Face Walking Due to Budget Shortfall
