October 7, 2003
By Thomas Thale
The city is to launch an investigation into allegations that City Power, a city owned electricity utility, awarded a lucrative contract to a company co-owned by the wife of its CEO, Mogwailane Mohlala.
The Star reported on Tuesday that Mohlala's wife, Melita, is a co-owner of Phumelela Interiors, a company that was awarded a tender worth R2,8-million to supply the electricity utility with furniture.
City Power's chairperson, Niven Pillay was quoted in The Star as saying that Mohlala had disclosed his wife's interests in Phumelela, but the company still won the tender because of "other technical and commercial considerations, including the fact that they were the cheapest, which weighed in their favour".
Kgotso Chikane, the mayor's spokesman, said that Amos Masondo, the executive mayor, had ordered the City Power board of directors to probe all issues relating to these allegations. "The board will use its discretion in deciding how the investigation will be conducted," Chikane said.
The board is to report to the mayor within a week on the progress of the investigation. "We are hoping for a speedy inquiry so that we can close the chapter on these allegations," Chikane added.
Permission to use web site material
Publishers may use material from this site free of charge, as long as:
- Credit is given to either the "City of Johannesburg website
(www.joburg.org.za)" or to "Johannesburg News Agency
(www.joburg.org.za)";
- If the article is used online, a link is provided to the original
article on this website;
- The name of the article's author is acknowledged;
-
The webmaster is informed of how and where the material is used (fill
in this brief online form).
Johannesburg News Agency is operated by BIG Media at 011-484-1400 |
