By: Sello Theletsane
City Power CEO Mongezi Ntsokolo has been suspended as ghosts from his past catch up with him.
Africa News Global has seen the suspension letter, which was issued on August 31. City Power said it was recently made aware of various allegations against him relating to failure to disclose accurate and substantial information about his previous employment with Fever-Tree. It also said he failed to properly address the circumstances relating to his retrenchment/retirement at Eskom and pending investigation for misconduct before he left Eskom.
“Consequently, City Power has initiated an investigation relating to these allegations through Group Forensic Investigation Service (GFIS). “Given the serious nature of the allegations made against you and the pending investigation, City Power is of the view that it will not be appropriate nor in the best interests of both you and City Power to allow you to continue in your position as a Chief Executive Officer until a determination is made regarding these allegations against you,” the letter stipulated.
Sources within City Power have told the publication that Ntsokolo, who joined the company five months ago, was a consultant for FeverTree.
“FeverTree has a multimillion-rand tender with City Power, and he only left them a month before joining City Power. A clause in the FeverTree contract says he should cool off for 12 months before joining a competitor or client. He did not declare this during his interview process,” said the source.
The publication has seen the agreement between FeverTree and its contractors. Under Restraint Provisions, it states that: “the contractor binds itself/himself/herself and undertakes for a period of twelve (12) months after the termination of this agreement that the contractor and/any connected person of the contractor or any employee of the contractor shall not accept any work from an existing client of FeverTree. A breach of the above undertaking by the contractor shall entitle FeverTree to obtain an interdict against the contractor or any of the persons mentioned above.”
According to the document, Ntsokolo was employed by FeverTree in October 2020 and joined City Power six months later in April.
Africa News Global has also seen Eskom’s letter dated December 20, 2018, intending to suspend Ntsokolo. In it, he was accused of irregular, unlawful and fruitless and wasteful expenditure, breaches of the Public Finance Management Act, the Preferential Procurement Policy Framework Act, breaches of the Treasury regulations, breaches of company policies, breaches of fiduciary duty, irregularities and conflict of interest in relations to (among other things) contracts with and /or payments made by Eskom to several companies. Ntsokolo could not be reached for comment.
City Power Spokesperson Isaac Mangena confirmed the suspension, saying the Board of City Power, at its sitting this week, resolved to suspend the CEO, pending an investigation into allegations against him that were brought to the attention of the Board.
He declined to give the reasons for the suspension, claiming that the matter was between employer and employee.
“The Board received information through a media query making serious allegations against the CEO. The Board decided to suspend him to enable them to conduct a thorough investigation,” he said.
Mangena added that Ntsokolo did not disclose the charges he had faced at Eskom.
“To the best of our knowledge, as City Power, we were not made aware of any charges of misconduct against Mr Ntsokolo. As per our processes, the incumbent of the position has a duty to disclose any material information at his disposal upon acceptance of the offer. We were made aware that he was given an early retrenchment package as part of Eskom cutting costs through his declaration,” Mangena said.
