Dodgy Eskom contracts under the microscope
The Special Investigating Unit (SIU) has been authorised to investigate allegations of corruption and maladministration related to nine contracts involving Eskom’s operations and coal and diesel procurement.
On Friday, 30 August 2024, the SIU announced that President Cyril Ramaphosa had signed an amended proclamation permitting it to probe the contracts.
It will also investigate any unauthorised, irregular, fruitless, or wasteful expenditure incurred by Eskom or the country.
“The investigation will encompass any unlawful or improper conduct by Eskom officials, employees, suppliers, service providers, or any other involved parties,” the SIU said in a statement.
The President’s declaration — Proclamation 178 of 2024 — authorises the SIU to investigate the following contracts:
- The procurement of and contracting for coal from Tegeta Exploration and Resources for coal supplied by Optimum Coal Mine and the Brakfontein Colliery Mine
- Procuring and contracting for coal information technology services under a master services agreement concluded with T-Systems International GmbH
- The procurement of and contracting for information technology services related to software licence and support agreements concluded with SAP South Africa
- Procurement of and contracting for coal services concerning Task Order SM008 for “capital scrubbing”
- The procurement of and contracting for coal security services from Combined Private Investigations
- The procurement of and contracting for coal forensic investigation services from Kapditwala Incorporated, trading as Dentons South Africa
- The procurement of and contracting for information technology services from Cutting Edge Commerce
- Serious maladministration in connection with the affairs of Eskom relating to a pre-payment by Eskom of approximately R1.68 billion for coal from Optimum Coal Mine to Hendrina Power Station, which pre-payment was later changed to a guarantee
- Serious maladministration in connection with the affairs of Eskom relating to a pre-payment by Eskom of approximately R659 million to Tegeta Exploration and Resources
The amended proclamation allows the SIU to investigate allegations of unlawful and improper conduct from 1 March 2006 to 30 August 2024.
Civil rights organisation AfriForum welcomed the proclamation’s signing, describing it as a giant step to promote accountability in South Africa.
It says it submitted an application to Eskom in July 2022 to obtain information about its coal and diesel contracts.
“The organisation believes that Eskom’s coal and diesel contracts contain information that may expose irregularities and corruption at the power supplier,” it added.
Campaign officer on corruption at AfriForum Charné Mostert says the SIU’s announcement highlights the deep corruption and maladministration at the state-owned power utility.
“This makes it inevitable that Eskom must reveal the details of these contracts,” says Mostert.
“We will continue unabated to demand that these contracts be made completely public so that the public can see the extent of the Eskom crisis.”
In July 2023, SIU spokesperson Kaizer Kganyago said the organisation was expanding its investigations into Eskom. He said the investigations were growing constantly as it uncovered more.
“When we started, we looked at some of the small investigations that related to employees,” Kganyago said.
“Later on, it expanded to include investigations of the coal contracts, and that then extended to include investigations of sabotage.”
The SIU turned away from investigating individuals to focus on syndicates involved in supplying coal and diesel to Eskom.
Kganyago’s comments echoed those made by Electricity and Energy Minister Kgosientsho Ramokgopa in an interview around the time.
“We are placing significant amounts of effort in ensuring that we protect these assets and defend the gains we have made,” Ramokgopa said.
To this end, the National Electricity Crisis Committee (Necom) established a team of intelligence and police experts to focus on crime, corruption, and safety at Eskom.
However, we need to “go beyond the ordinary men to the main orchestrators and the brains behind the efforts to undermine electricity supply,” added Ramokgopa.
He said the destruction of infrastructure was orchestrated, with Necom identifying several links between Eskom sabotage and the destruction of rail infrastructure in the country.
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