Corruption Arrests Highlight Systemic Issues in Johannesburg's Electricity Billing

Two suspects were arrested last week in Johannesburg following an entrapment operation linked to electricity billing fraud. The contractor allegedly offered to reduce or reverse a resident’s municipal electricity debt of over R114,000 in exchange for a payment of R53,000.

The case has drawn attention from civic organization JoburgCAN, which helped escalate the complaint. Julia Fish, executive manager of JoburgCAN, stated that while there is progress in tackling corruption within City Power, significant gaps remain. "This shows on the one hand that there is a commitment to rooting out bad actors, but also clearly that there are issues in the system that can be taken advantage of by those bad actors," Fish said.

Fish added that corruption may not be limited to external contractors and could involve internal staff within the billing or procurement department. City Power spokesperson Isaac Mangena confirmed that between July 2024 and February 2025, eleven employees were arrested for procurement and payment irregularities. A forensic investigation initiated in October 2023 uncovered fraudulent job numbers, duplicate approvals, manipulated invoices, and contractor misconduct.

JoburgCAN receives complaints about billing problems daily, ranging from estimated bills to incorrect metering. Although the organization does not resolve individual disputes due to capacity constraints, it provides guidance and escalates extreme cases. JoburgCAN collaborates with the Presidential Joburg Working Group’s water and power workstreams and works closely with law enforcement on whistleblower reports.

Mangena emphasized that City Power has adopted a zero-tolerance stance toward corruption involving employees, contractors, and service providers. The utility is continuing its investigation into allegations that internal staff may have assisted the contractor involved in the latest case.