City Power steps up efforts to clear R900m contractor debt - EWN

City Power said it was stepping up efforts to settle outstanding payments to contractors, with about R900 million owed to service providers.

The utility said it had made partial payments totalling about R200 million since introducing financial ring-fencing on 1 October.

This followed an engagement with protesting contractors and subcontractors outside City Power’s Reuven head office.

City Power spokesperson Isaac Mangena said the new arrangement gave the utility greater control over its revenue and was expected to improve payment turnaround times.

Mangena said the utility would prioritise the oldest verified invoices as funds became available.

"This is actually a moving target with the contractors because contractors continue to work and submit invoices on a daily basis. So, our focus is to reduce overdue accounts and establish a consistent payment cycle within the 30 days as required by the National Treasury and the Auditor-General." Mangena said.

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