Workers livid as City Power fails to pay contractors

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13-08-2025
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Sowetan Live
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Power utility owes R1.1bn for various projects

City Power owes 172 contractors working on various projects across Johannesburg about R1.1bn in outstanding payments, which have not been paid for more than five months.

The nonpayment has had a ripple effect, leaving some workers in Vlakfontein – involved in a department of human settlements initiative and City Power’s microgrid project – without their wages. 

The housing project accommodates families relocated from the Phumlamqashi informal settlement, where they had built on an Eskom servitude and needed to be moved to an area with proper roads and basic infrastructure.

It also provides homes for some residents from Vlakfontein.

An Eskom servitude is land reserved for power lines and related infrastructure, where no one is allowed to build.

[Construction Workers]

Construction Workers

Image: Antonio Muchave

The workers said they began construction in July and were promised payment by mid-month. When that didn’t happen, they were told their salaries would be paid on July 31 and then later on August 11. None of the promises materialised.

On Monday, a human settlements official informed the workers that City Power was responsible for the payments and advised them to stop working until they were paid.

Tensions mounted with workers opting to drive to City Power’s offices in Booysens to demand answers.

Mandla Vilane, who represents the workers said: “We have been working very hard and even knocking off at 6pm or 8pm some days. This is painful. I am very disappointed in what they are doing to us. We should not be fighting to get our salaries.”

Vilane, who has four children aged three to 27 years old, said he did not have food to feed his family or money to pay for crèche.

Another worker, Sithembile Miya, 32, said she was saddened to be going home without her salary and would again have to make promises to her landlord about her late rent.

“Building these shacks has not been easy. We have worked really hard in difficult conditions and now to be told that we won’t be getting our salaries is just too sad. I am a parent and my family has needs. We are very disappointed at how we are being treated,” she said.

Miya, who has three children aged six to 13, said she owed money for school transport and R1,300 for rent.

“My children need to eat and I need to be able to afford rent. Now I had to send my landlord a video showing her that there is a strike and we are not getting paid. I keep making promises that we will get paid and giving her hope.”

City Power spokesperson Isaac Mangena said the utility was aware of the pressures contractors face due to the delays.

“The entity [City Power] is dependent on the shareholder [the City of Johannesburg] for monthly operational and capex [capital expenditure] budget allocations. We have explained this undesirable situation to our contractors to bear with us. As soon as funds are made available to us, we will settle the backlog, which is now sitting at just over R1bn,” he said.