- Eskom has confirmed disciplinary action and possible criminal charges linked to irregular diesel procurement contracts worth about R21bn.
- Investigations point to procurement control failures, questionable supplier appointments and more than R3bn in abnormal prepayments to diesel contractors.
- Several controversial companies secured contracts in the billions despite apparent concerns around experience, financial capacity and governance.
Eskom’s interim investigation into its controversial diesel procurement and storage contracts has intensified scrutiny over governance controls at the utility after widespread non-compliance with procurement and contract management processes linked to tender MWP2197GX was uncovered.
The investigation, initiated internally by Eskom’s Group Investigations and Security division in March 2025, focused on contracts for diesel supply to Eskom’s Open Cycle Gas Turbine peaking plants, including the strategically critical Ankerlig power station near Cape Town. The contracts collectively cover the supply of about one billion litres of diesel over five years and are valued at roughly R21bn.
Eskom said the probe was launched after concerns emerged during periods of severe system strain and heightened loadshedding risk in early 2025. The utility has now confirmed that disciplinary proceedings will begin against several employees implicated in procurement breaches, while suppliers found to have violated Eskom policies may also face sanctions.
The utility has further referred the matter to the Directorate for Priority Crime Investigation under the Prevention and Combating of Corrupt Activities Act, opening the possibility of criminal prosecution.
Investigative findings by amaBhungane suggest Eskom approved more than R3bn in extraordinary prepayments to certain diesel suppliers during periods when the country faced elevated loadshedding risks. The alleged prepayments were reportedly used to support suppliers that may have lacked the financial strength to fulfil supply obligations independently. The suppliers involved deny wrongdoing.
One of the most controversial awards involved Severino Industries, which secured a diesel allocation worth about R4bn despite being led at the time by a 24 year old psychology graduate, Minenhle Mavuso, who had been appointed director only days before the tender closed in December 2023.
The company’s founder, Zimbabwean born businessman Nigel Nenji, resigned shortly afterwards, leaving Mavuso as sole director. Public records indicate Mavuso simultaneously operated an online hair business while overseeing a company entrusted with one of Eskom’s most critical fuel supply contracts.
Another allocation worth roughly R4bn reportedly went to Nutinox, a relatively obscure company previously linked to controversy over a Johannesburg Water tanker contract.
amaBhungane further reports that another allocation was awarded to African Forwarding and Shipping (AFS) as the final bidder which offered Eskom a R1.60/litre discount off the wholesale price without any prepayment deal. AFS confirmed that it barely received any orders since the contract started: “AFS had bid for diesel supply on the basis of being an importer and had priced its product accordingly. Eskom unfortunately has refused to issue a [purchase order]that enable full vessel import.”
Industry observers have questioned how several relatively unknown intermediaries secured contracts originally expected to favour major refiners, importers and established petroleum operators.
When Eskom issued the tender in October 2023, the utility indicated it anticipated participation from large fuel importers and petroleum manufacturers due to the scale and operational complexity of the contract. Bidders were required to maintain at least five million litres of diesel storage capacity, equivalent to about R100m in fuel inventory, while also accepting payment terms of up to 60 days.
The emerging evidence now raises concerns that procurement requirements may not have been consistently applied during the adjudication process.
Eskom has so far declined to disclose detailed findings from the investigation, citing ongoing governance processes and the possibility of criminal proceedings. The utility also reportedly did not respond to multiple requests for access to procurement documents under South Africa’s Promotion of Access to Information Act.
Eskom Board Chairperson Mteto Nyati said the board maintained a zero tolerance approach to corruption and would pursue recovery of any financial losses linked to irregular conduct.
Group Chief Executive Dan Marokane said the interim report highlighted the need to hold employees accountable for failing to follow Eskom’s processes and confirmed that action against suppliers would also follow where necessary.
The utility acknowledged that controls over large procurement transactions had previously been weakened. In October 2022, Eskom discontinued full scope probity and proactive assurance reviews for procurement transactions exceeding R500m, arguing that the process was not cost effective and had not identified major findings historically.
Only limited anti bribery and anti-money laundering reviews were subsequently conducted, a move Eskom now admits increased exposure to procurement irregularities.
Eskom said comprehensive assurance and probity reviews were reinstated in late 2025 for all high value tenders.
The diesel procurement controversy comes despite a significant reduction in Eskom’s diesel expenditure as generation performance improved. Diesel spending between 1 April and 7 May 2026 totalled R469.24m, compared with approximately R6.4bn for the full 2025 to 2026 financial year, down sharply from R33bn in FY2023.
While Eskom has positioned the decline as evidence of improving operational stability and reduced reliance on diesel fired generation, the procurement investigation highlights the ongoing challenge of strengthening governance and procurement oversight across the utility.
The final forensic investigation report is expected to be completed by mid-June 2026.
Author: Bryan Groenendaal
Apology
GBA incorrectly raised allegations that African Forwarding and Shipping was reportedly under investigation of bribery involving Transnet officials. GBA apologies to African Forwarding and Shipping unreservedly for the error.
