Manager arrested after the company received a payment of 66 million rand for the City Power substation, but did not do any work



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A project manager for Setheo Engineering appeared briefly in commercial crimes court in Palm Ridge on Monday.

He is expected to appear in court again for a formal application for bail on Monday of next week.

The city of Johannesburg said City Power awarded the company a contract in 2015 to build a new substation at Eldorado Park, worth R126m.

An investigation by the city’s investigative and forensic services department found that nearly R66 million was paid to the service provider in February 2017 without any physical work being performed.

It is alleged that two City Power officials collaborated with Setheo Engineering officials to ensure that the bills were paid.

Since then, the two officials have been fired.

“The matter came to the attention of the city after employees of subcontractors related to the construction project protested against the main contractor for City Power and threatened to set the substation on fire,” the city said in a statement.

Community leaders in and around Eldorado Park prevented the attempted destruction of the substation.

TimesLIVE



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