Inside Eskom’s dodgy R21 billion diesel contract

• The R21-billion contract to supply diesel to peaking plant Ankerlig has been under investigation for almost a year, but Eskom is refusing to say what it found.
• AmaBhungane’s own investigation suggests that Eskom provided R3-billion in abnormal prepayments to prop up suppliers that were seemingly unable to deliver diesel when the country was at heightened risk of loadshedding last year – an allegation that those suppliers deny.
• Eskom awarded a roughly R4-billion diesel contract to a group that is under investigation for allegedly bribing Transnet officials (though it denies involvement).
• Another roughly R4-billion allocation was awarded to Nutinox, the obscure company controversially awarded a water tanker contract by Johannesburg Water.
• A third company – led by a 24-year-old psychology graduate at the time of the tender – got a R4-billion allocation as well.

In 2024, Minenhle Mavuso (24) was living two separate lives.

In one, the BA psychology graduate ran an online wig store – Milo Hair Beauté – where a super double drawn bob would set you back R1180. In the other, she ran Severino Industries, a company that was bidding for a R21-billion contract to supply diesel to Eskom’s Ankerlig power station.

Ankerlig is one of Eskom’s Open Cycle Gas Turbines, located on the outskirts of Cape Town. As a peaking power station, it runs massive diesel generators to keep the lights on for the entire country when Eskom’s fleet can’t meet demand.

Mavuso had been appointed as a director in December 2023, a week before the tender closed, and soon after that the company’s Zimbabwean-born founder, Nigel Nenji, resigned, leaving Mavuso as the sole director.

Ten months later, Severino signed a contract to provide Eskom with roughly R4-billion worth of diesel over the next five years.

Mavuso, now 26, initially agreed to an interview then ghosted us. In a follow-up email she said: “In accordance with company policies and procedures… the company’s official response will suffice, rather than providing a separate response in my personal capacity.”

Yet Eskom’s decision to entrust one of its most critical and lucrative contracts to Mavuso’s company, is only one of the many irregularities we have unearthed while investigating tender MWP2197GX.

From R3-billion in extraordinary prepayments, to a contract awarded to a group under investigation for bribing Transnet officials, this deal is arguably shaping up as one of Eskom’s most problematic.

Two weeks ago, Eskom released a curt statement confirming that its newly established Group Investigations and Security Department was investigating “possible irregularities relating to the procurement of diesel fuel and storage contracts”.

“Eskom can confirm the investigation is now in its final stages of completion… Given that the matter is still pending, Eskom is not in a position to engage on the details or comment further at this stage,” it said.

What Eskom did not say was that amaBhungane had raised questions about the contract in June last year, which Eskom refused to answer.

Nor did Eskom say that it had ignored two PAIA requests asking it to release the documents that would explain how the winning bidders were awarded the contract.

But since then, sources have reached out with detailed forensic evidence showing purchase orders, dates, volumes and payments.

A month ago, we put 47 detailed questions to Eskom. After multiple requests for extensions, a spokesperson told us: “Eskom has issued a statement confirming that the investigation is in its final stages and remains subject to internal governance, legal and assurance processes … Accordingly, we are unable to discuss this matter any further.”

Refiners, importers and middlemen

When Eskom advertised the 5-year contract in October 2023, it was clear about who it expected to qualify.

“This contract is currently with PetroSA” – the state-owned petroleum company – “due to capacity and the value of this contract Eskom is willing to test the market on an open tender and is likely to get major importers of the product and local manufacturers in the petroleum and liquid industry.”

It wasn’t just the size of the contract – one billion litres of diesel over five years – that would likely take smaller players out of the running. It was also the rules: bidders were required to keep at least five million litres of diesel (worth around R100-million) in storage and would have to wait for 60 days to be paid.

Unless the rules were bent to suit certain suppliers.

AmaBhungane’s own investigation suggests that Eskom overlooked a series of red flags about the suppliers it picked, leaving it exposed when the tide went out and the country was threatened with loadshedding.

On 30 December 2024, Eskom sent a letter – To All Tenderers – breaking the news that the tender had been awarded: “The successful suppliers are: African Forwarding and Shipping, Astron Energy, Lanele Resources, Nutinox, Severino Industries,” Eskom’s senior manager for procurement, Antonie Mammes, wrote.

Authors: Susan Comrie and Sam Sole for amaBhungane