Scam alert: City Power warns of syndicates preying on suppliers

City Power took the opportunity this week to remind suppliers of syndicates who are preying on suppliers using City Power and their employees’ names to solicit quotations.

City Power scam: What you need to know

Requesting quotations

Fraud and corruption at municipal level seems to be an ever present part of our news cycle.

The electricity provider now urges those looking to do business with them to acquaint themselves with their procedures to ensure that they do not risk getting scammed.

The advice should be heeded by anyone looking to respond to requests for quotations by municipalities as the syndicates involved are increasingly targeting vendors.

How does it work?

According to the power utility, the scams involve members of the syndicates approaching vendors by fraudulently using the names and contact details of their officials.

With this in mind vendors need to safeguard themselves by ensuring they are well versed in the proper processes for conducting business with municipalities and utilities like City Power.

Importantly vendors should be very suspicious if they are solicited by an official for a quotation. Requests for quotations should be advertised on the relevant website or via the newspaper to ensure all parties have an equal opportunity to provide a quotation for goods or a service.

City Power’s Guidelines for service providers

To clarify the process that City Power follows when requesting a quotation, the electricity provider gave the following guidelines for service providers. City Power does not:

• contact nor call suppliers during the process of requesting quotations
• issue purchase orders via fax
• issue purchase orders within a short space of time eg. Two days.

In addition, purchase orders are issued within 14 (fourteen days) after the closing date, and no City Power official is allowed to contact a supplier directly to request a quotation for any goods or service.

Lastly, the elelctricity provider will not ask its suppliers to drop off a consignment of goods at any location except at its main stores on its premises, 40 Heronmere Rd Reuven

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