Contractors who worked with City Power protested on Wednesday over unpaid invoices amounting to R1.2 billion.
City Power confirmed the demonstration, outside the its head office in Reuven, was linked to payment disputes.
Spokesperson Isaac Mangena said some of the protesting contractors previously worked on the Vlakfontein housing electrification project.
CITY TO ENGAGE CONTRACTORS
Mangena said City Power was only the “implementing agent” in this project and not responsible for making payments.
“The responsibility for paying contractors, therefore, lies with the department,” Mangena said.
He added that City Power acknowledged concerns from unpaid contractors in other operations and maintenance projects, saying the delays were due to outstanding transfers from the City of Johannesburg.
“Limited funding has been received in recent months, which has not been sufficient to cover the full operational costs of the entity, owing to the broader financial pressures faced by the City,” Mangena said in a statement.
Mangena said the city had set aside R56 million to be released between Wednesday and Thursday to reduce the debt.
He added that engagements with owed contractors would follow to provide updates and address outstanding issues.
