5 April 2024

City Power Johannesburg

40 Heronmere Road, Reuven
Booysens
2016

Subject: Immediate TOOLS DOWN - Grievances and Breach of Agreement

CC: All Main Contractor's, Chief Execu ve Officer, GE, GMs, Depot Manager

The purpose of this correspondence is to bring to your a en on several unresolved grievances that the City Power
Subcontractors Associa on (CPSA) has been facing in our engagement with both Main Contractors and City Power.
Due to the ongoing issues men oned below, we regret to inform you that CPSA has decided to ini ate an
immediate TOOLS DOWN un l these ma ers are adequately addressed.

1. Non-Payment on Old Jobs: It has come to our a en on that several outstanding payments for completed jobs
da ng back to previous contractors remain unpaid. We remind you that mely payment is crucial for the
sustainability of our subcontractors and their ability to con nue suppor ng your projects.

2. Return of Proformas without Clear Reasons: We have observed a recurring problem where proformas are being
returned to us without any clear reasons provided. This lack of transparency hampers our ability to address
poten al issues promptly and delays the progress of ongoing projects.

3. Scratching of Invoices and BOQ Items: CPSA has noted the scratching of invoices and items that are clearly
outlined in the Bill of Quan es (BOQ). Such ac ons not only cause confusion but also give rise to mistrust and
hinder the smooth func oning of our working rela onship.

4. Manipula on of BOQ and Unfair Material Prices: It has been brought to our a en on that there are instances of
manipula on of the BOQ within City Power's system, which has resulted in unfair material prices for subcontractors.
This exploita on directly affects the financial viability of our members and undermines the trust we have in this
partnership.

5. Lack of Purchase Orders (POs) and Non-Payment for New Contracts: CPSA has received reports that no POs have
been created, and consequently, no payments have been made for the new contracts awarded over the past four
months. This prolonged breach of the agreement between respec ve par es is unacceptable and needs immediate
a en on.

Considering the severity and urgency of these grievances, CPSA has deemed it necessary to enforce a TOOLS DOWN
ac on un l a resolu on is reached. We request your prompt a en on to these ma ers and expect a concrete plan
of ac on to rec fy them within reasonable meframe of receiving this le er.

It is our belief that by addressing these grievances in a mely and sa sfactory manner, we can restore a posi ve
working rela onship and ensure the successful comple on of ongoing projects. CPSA stands ready to engage in
construc ve discussions to find resolu ons that are fair and acceptable for all par es involved.

Your immediate and sincere a en on to this ma er is greatly appreciated. We eagerly await your response and
hope for a swi resolu on to these issues.

Yours sincerely, -0 5 - 04
2024
The Secretary
City Power Subcontractors Associa on (CPSA)