Joburg electricity arrests expose deep-seated billing corruption

The arrest of two suspects last week in a corrupt scheme linked to electricity billing has exposed deeper concerns about systemic weaknesses in Johannesburg’s power and billing systems.

The suspects were arrested following an entrapment operation after a contractor allegedly offered to reduce or reverse a resident’s municipal electricity debt in exchange for a payment of R53,000.

The resident had reportedly been disputing an electricity bill that had accumulated to more than R114,000.

The case has drawn attention from civic organisation JoburgCAN, which helped to escalate the complaint. City Power said it was continuing with its investigation.

Speaking to Our City News, JoburgCAN executive manager, Julia Fish, said the incident showed both progress in tackling corruption and the gaps that still exist within municipal systems.

“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.

“There are clearly people, not just external contractors, in the billing or procurement department that are enabling and assisting with the extortion and only a full investigation will hold them accountable and lead to more arrests,” she said.

According to Fish, JoburgCAN receives complaints about billing problems on a daily basis, ranging from estimated bills and incorrect metering to disputes that can last for years.

Although the organisation does not resolve individual billing disputes due to capacity constraints, it provides guidance to residents and escalates extreme cases.

JoburgCAN participates in the Presidential Joburg Working Group’s water and power workstreams and works with the City through a co-governance model aimed at improving oversight and service delivery. The organisation also works closely with law enforcement when whistleblower reports emerge.

City Power spokesperson Isaac Mangena told OCN that the recent arrests were part of a broader effort to strengthen governance and crack down on corruption within the utility.

“City Power has adopted a zero-tolerance stance toward corruption involving employees, contractors and service providers,” Mangena said.

He said between July 2024 and February 2025, eleven employees were arrested in connection with procurement and payment irregularities.

Mangena added that a forensic investigation initiated in October 2023 also uncovered fraudulent job numbers, duplicate approvals, manipulated invoices and contractor misconduct.

The investigation resulted in disciplinary action against fifteen employees, with several dismissed and at least one case currently before the courts.

Mangena said the allegation that the contractor involved in the latest case had help from someone within the billing department was still under investigation.

“Any representation by a contractor that they can personally reverse an account outside of lawful procedures constitutes fraudulent misrepresentation and is treated as such,” he said.