The former managing director of Eskom, Dawid Malherbe, was found guilty of fraud and money laundering on Friday at the Bellville Specialised Commercial Court, police said in a statement.
Malherbe was arrested with another suspect in 2013 after a whistle blower alerted the Hawks to irregularities in the power utility’s tender awarding process, police said.
“The Financial and Asset Forfeiture Investigations and Anti-Corruption Task Team investigated the allegations and found that Malherbe, during his tenure as Eskom’s managing director between 2007 and 2009, unduly awarded tenders to Energy Utility Services, the company which he owned.
“The results of the internal investigations as well as the reports from the external auditors found that Malherbe’s actions of awarding tenders to his company amounted to irregular, wasteful and fruitless, expenditure. At the knowledge of the results, Malherbe immediately resigned,” police spokesperson Lieutenant Colonel Robert Netshiunda said.
Netshiunda said Eskom endured losses in the region of R65m.
“Asset Forfeiture Unit has thus far managed to recoup approximately R10m through the attachment of the accused’s assets,” he added.
The second accused was granted immunity from prosecution after agreeing to testify against Malherbe, Netshiunda said.
National Head of the Hawks Lieutenant General Mthandzo Ntlemeza welcomed the guilty verdict and applauded the investigating team for securing a conviction.
Sentencing proceedings were scheduled for August 11.