{"id":496753,"date":"2023-06-18T10:59:49","date_gmt":"2023-06-18T08:59:49","guid":{"rendered":"https:\/\/mybroadband.co.za\/news\/?p=496753"},"modified":"2023-06-18T11:01:10","modified_gmt":"2023-06-18T09:01:10","slug":"the-eskom-cover-up","status":"publish","type":"post","link":"https:\/\/mybroadband.co.za\/news\/investing\/496753-the-eskom-cover-up.html","title":{"rendered":"The Eskom cover-up"},"content":{"rendered":"<p>Former CEO Andr\u00e9 de Ruyter and other whistleblowers have exposed widespread fraud and corruption at Eskom. Instead of tackling these problems, there is a huge effort to cover them up.<\/p>\n<p>In his book, Truth to Power, De Ruyter exposed widespread corruption, fraud, and sabotage at the power utility.<\/p>\n<p>He explained how criminal networks involving high-profile politicians infiltrated all levels of Eskom\u2019s operations.<\/p>\n<p>At every step of its supply chain, Eskom must defend itself against armed robbery, fuel theft, sabotage, and corruption.<\/p>\n<p>Criminal networks, for example, pay off security personnel and plant workers and force engineers and managers to create fake procurement orders for goods or services.<\/p>\n<p>In many cases, the corrupt procurement companies re-sell stolen Eskom parts back to the utility without any repercussions.<\/p>\n<p>Although De Ruyter\u2019s recent revelations made headlines, fraud and corruption at Eskom are nothing new.<\/p>\n<p>Eskom was a key focus area in the Judicial Commission of Inquiry into Allegations of State Capture, and the Gupta family featured prominently.<\/p>\n<p>When Cyril Ramaphosa took over from Jacob Zuma as South Africa\u2019s president in 2018, he promised Eskom\u2019s reform would be a major focus.<\/p>\n<p>Eskom\u2019s leadership team looked through years of records and found $1.5 billion of irregular contracts, promising to open criminal cases against senior Eskom executives.<\/p>\n<p>\u201cWe will continue to shake these cobwebs,\u201d former chairman Jabu Mabuza told reporters that year. \u201cThere may be more.\u201d<\/p>\n<p>However, very little has happened to root out corruption at Eskom. One reason is that the ruling party and connected politicians benefit from the malfeasance.<\/p>\n<p>De Ruyter provided Sydney Mufamadi and Pravin Gordhan with names of high-ranking politicians allegedly involved in corruption at the power utility.<\/p>\n<p>To date, none of these men wanted to reveal the names, although <strong><a href=\"https:\/\/mybroadband.co.za\/news\/energy\/492141-pravin-gordhan-refuses-to-name-senior-politicians-accused-of-eskom-corruption.html\">they have been published in the press<\/a><\/strong> with the caveat that the intelligence linking the individuals to cartels at Eskom may be unreliable.<\/p>\n<p>Accomplished advocate, former police superintendent, and &#8220;Applied Law for Police Officials&#8221; textbook author Cerita Joubert has since found that the intelligence <strong><a href=\"https:\/\/mybroadband.co.za\/news\/investing\/494469-big-questions-about-andre-de-ruyters-r500-million-security-tender.html\">was a critical first step<\/a><\/strong> from which investigations should be launched.<\/p>\n<p>Yet, instead of targeting politicians accused of malfeasance, the ruling party is taking aim at De Ruyter.<\/p>\n<p>More recently, the City Press newspaper reported that a high-ranking Eskom executive is <strong><a href=\"https:\/\/mybroadband.co.za\/news\/technology\/494529-police-link-high-level-eskom-exec-to-power-station-sabotage.html\">linked to sabotage<\/a><\/strong> at power stations.<\/p>\n<p>What surprised many people is that the investigation into the executive and other Eskom employees has been dragging on for years. These employees are still working at Eskom.<\/p>\n<div id=\"attachment_496755\" style=\"width: 1210px\" class=\"wp-caption aligncenter\"><a  data-lightbox=\"post-image\" href=\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2023\/06\/Ghaleb-Cachalia-SONA-2019.jpg\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-496755\" class=\"size-full wp-image-496755\" src=\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2023\/06\/Ghaleb-Cachalia-SONA-2019.jpg\" alt=\"DA's Deputy Shadow Minister of Trade and Industry, Ghaleb Cachalia during the 2019 South African State of the Nation Address at Parliament in Cape Town.\" width=\"1200\" height=\"800\" srcset=\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2023\/06\/Ghaleb-Cachalia-SONA-2019.jpg 1200w, https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2023\/06\/Ghaleb-Cachalia-SONA-2019-600x400.jpg 600w, https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2023\/06\/Ghaleb-Cachalia-SONA-2019-800x533.jpg 800w, https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2023\/06\/Ghaleb-Cachalia-SONA-2019-768x512.jpg 768w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><\/a><p id=\"caption-attachment-496755\" class=\"wp-caption-text\">Ghaleb Cachalia, DA public enterprises spokesperson. CC BY-ND 4.0: Ashraf Hendricks\/GroundUp<\/p><\/div>\n<p>DA public enterprises spokesperson Ghaleb Cachalia said instead of holding Eskom and other implicated parties to account, Parliament\u2019s portfolio committee helps with the cover-up.<\/p>\n<p>\u201cIn the portfolio committee, there is a large number of people, and you can guess from which political party, who cover it up,\u201d he said.<\/p>\n<p>Cachalia said the committee members covered up for the minister, Eskom, and other government officials implicated in the problems at the power utility.<\/p>\n<p>\u201cThat is not the way the portfolio committee for public enterprises should behave,\u201d Cachalia said.<\/p>\n<p>Cachalia\u2019s experience echoes that of De Ruyter, who said he received no help from police, related state security agencies, or the government to fight fraud and corruption.<\/p>\n<p>According to De Ruyter\u2019s Scopa submission, he has reported allegations and fraud and corruption to many organs of state.<\/p>\n<ul>\n<li>He met with senior police officials and the State Security Agency at the end of last year to ask for assistance in investigating corruption at Eskom.<\/li>\n<li>He said he reported \u201cthe matter\u201d to the then Interim Chair of Eskom, Prof Malegapuru Makgoba.<\/li>\n<li>He shared \u201chigh-level concerns about corruption and theft in Eskom\u201d with the National Police Commissioner and his staff.<\/li>\n<li>He reported the main findings of his intelligence dossier to Minister Pravin Gordhan and the National Security Adviser, Dr Sydney Mufamadi.<\/li>\n<\/ul>\n<p>However, he soon realised there was no significant political will to aggressively target corruption at Eskom. In fact, the inverse was often true.<\/p>\n<p>In one case, a contractor working in the procurement department was arrested after an investigation fingered him in criminal activity.<\/p>\n<p>However, soon after the arrest, the suspect was released by the police \u2018on the instructions of a senior police officer\u2019.<\/p>\n<p>De Ruyter highlighted that getting the government or the security cluster to act on fraud and corruption at Eskom was very challenging.<\/p>\n<p>This was why he launched a private investigation into problems at Eskom and publicly exposed fraud and corruption through his book and eNCA interview.<\/p>\n<hr \/>\n<p><em>A version of this article was first published by <strong><a href=\"https:\/\/dailyinvestor.com\/energy\/19337\/big-eskom-cover-up\/\" target=\"_blank\" rel=\"noopener\">Daily Investor<\/a><\/strong> and is republished with permission.<\/em><\/p>\n<h3 class=\"my-4\">Now read:\u00a0<a href=\"https:\/\/mybroadband.co.za\/news\/energy\/496737-south-africa-has-the-skills-to-fix-eskom.html\">South Africa has the skills to fix Eskom<\/a><\/h3>\n","protected":false},"excerpt":{"rendered":"<p>Whistleblowers have exposed widespread fraud and corruption at Eskom. Instead of tackling these problems, there is a huge effort to cover them up.<\/p>\n","protected":false},"author":341108,"featured_media":489213,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[80335],"tags":[61891,71154,35,17032,4198,86221],"class_list":["post-496753","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing","tag-andre-de-ruyter","tag-ghaleb-cachalia","tag-headline","tag-jabu-mabuza","tag-pravin-gordhan","tag-sydney-mufamadi"],"_links":{"self":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/496753"}],"collection":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/users\/341108"}],"replies":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/comments?post=496753"}],"version-history":[{"count":1,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/496753\/revisions"}],"predecessor-version":[{"id":496757,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/496753\/revisions\/496757"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media\/489213"}],"wp:attachment":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media?parent=496753"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/categories?post=496753"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/tags?post=496753"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}