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Major Fraud Discovered at City Power Amid Economic Challenges in South Africa

Johannesburg City Power experienced substantial losses due to fraud, with 15 employees facing action. Durban’s restaurant industry is in decline due to cost pressures and load shedding, despite community efforts for recovery. The South African government aims to conduct five million TB tests annually to tackle rising infections and deaths, especially among high-risk populations.

Johannesburg City Power has reported substantial financial losses due to a major fraud scheme, which has led to disciplinary actions against 15 employees involved. A recent Auditor General report highlighted the organization’s weak internal controls that have resulted in billions in irregular expenditure. Furthermore, the investigation revealed that contractors submitted fraudulent, duplicate, and inflated invoices, prompting City Power to suspend payments to those contractors until a comprehensive review is conducted. City Power spokesperson Isaac Mangena stated that payments to the contractors have been halted for further analysis.

Umhlanga, a prestigious destination for dining and nightlife in Durban, is experiencing significant economic challenges as many restaurants close due to high rental costs and escalating operating expenses exacerbated by load shedding. The restaurant sector, contributing over R6 billion to the economy and sustaining millions of jobs, faces increased pressure, particularly in Durban, which has been harder hit than other cities. Various obstacles, including beach closures, water restrictions, and limited consumer spending, have negatively impacted both small establishments and national franchises such as Famous Brands, which has shut down 41 outlets across the country. Nevertheless, Durban’s resilience suggests a potential for recovery, supported by organizations like the Restaurant Association of South Africa and the Durban Chamber of Commerce.

The South African government is targeting an annual tuberculosis (TB) testing rate of five million as part of the End TB campaign, initiated prior to World TB Day on March 24. This initiative seeks to minimize new infections and reduce TB-related fatalities. Given TB’s status as a leading cause of death worldwide and the highest mortality rate among South African men, 2023 saw 270,000 new cases and 56,000 deaths, with 54% of victims also living with HIV. Health Minister Dr. Aaron Motsoaledi emphasized the necessity for extensive testing, especially among high-risk groups, including families of TB patients and HIV-positive individuals, addressing the issue of asymptomatic cases, which account for a significant portion of infections and transmission.

In summary, Johannesburg City Power faces financial repercussions from a fraudulent scheme involving its employees, prompting critical evaluation of internal controls. Meanwhile, the restaurant industry in Durban struggles with closures due to economic challenges, yet shows resilience through community support efforts. Additionally, the government’s ambitious plan for comprehensive TB testing underscores the urgent need to combat this health crisis, particularly among vulnerable groups, as part of a broader public health initiative.

Original Source: allafrica.com

Leila Abdi

Leila Abdi is a seasoned journalist known for her compelling feature articles that explore cultural and societal themes. With a Bachelor's degree in Journalism and a Master's in Sociology, she began her career in community news, focusing on underrepresented voices. Her work has been recognized with several awards, and she now writes for prominent media outlets, covering a diverse range of topics that reflect the evolving fabric of society. Leila's empathetic storytelling combined with her analytical skills has garnered her a loyal readership.

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