• The DA has accused City Power Johannesburg of bowing to political interference by "suspending" its CEO.
• The party said other executives stand accused of serious misconduct; yet, they remain in their jobs.
• City Power said its CEO was put on special leave by mutual agreement and all allegations were being investigated. 

The DA has said that the suspension of City Power Johannesburg's CEO, Lerato Setshedi, "demonstrates that the board is playing ANC politics, instead of maintaining critical oversight of the ailing power utility, improving operations and implementing a workable turnaround strategy".

In a statement by the party's Nico de Jager, the DA said Setshedi was placed on special leave for alleged maladministration, leaving the entity with an unknown and inexperienced general manager at the helm.

But City Power firmly denied this. Isaac Mangena, media relations manager at City Power, told News24 serious allegations were levelled against Setshedi by senior members of staff.

"So the board saw it fit that for a proper and fair investigation of such allegations to take place unhindered. Setshedi agreed with the board to take special leave. So there were no political interference or pressure exerted to the Board (sic)," Mangena said.

He also denied that the newly appointed general manager Malope Ramagaga was "unknown and inexperienced".

"Ramagaga has been working for 19 years of uninterrupted service in various roles and departments. He may be unknown, but not inexperienced," Mangena said.

De Jager further alleged that three other executives at the institution stand accused of corruption and allegations of inflating invoices; yet, they are still in their offices while investigations are under way.

Dismal failure

"At face value this is a dismal failure by the board of directors to maintain a level stability in the troubled entity.  

"City Power is a City entity that has been suffering over the past 10 years since the implementation of project Phakama whereby the City took over the entire value chain of revenue collection leaving City Power with the maintenance and expansion of the infrastructure as well as aspects of meter reading only.

"The DA in Johannesburg believes in the rule of law as a key principle. We believe that all these allegations of maladministration and corruption of all officials should be investigated and where anyone is found to be guilty of wrongdoing that the appropriate steps should be taken," De Jager said.

Mangena told News24 investigations into these allegations are currently under way by the Group Forensic and Investigation Service, which is the City of Johannesburg's anti-fraud and corruption department.

"We are not at liberty to divulge what the allegations are to the media.

"Upon the conclusion of the investigation, City Power won't hesitate to act should there be evidence of wrongdoing."

Despite this, the DA said it still could not understand the motivation behind the suspension of the CEO without an explanation from the political leadership.

No political pressure

"All citizens are equal before the law and this principle doesn't seem to apply. Any allegation and especially at executive level should be investigated, this can be done without leaving the entity paralysed and exposed.

"The DA hopes that these are not trumped up charges against executives who are not willing to play to the hand of a political master. If that were to be the case it is the residents of Johannesburg that stand to be the biggest loser when the lights do go out," De Jager said.

Mangena reiterated that Setshedi had not been suspended, but was put on special leave, which he and the board agreed to.

"There was no political interference or pressure exerted to the board."