- R76.5 million in properties and luxury vehicles linked to Siyabonga Nkosi frozen by Special Tribunal.
- SIU uncovers price inflation of up to 11,000% on basic electrical components at Eskom power stations.
- Civil recovery and potential criminal prosecution processes to follow within 60 days.
South Africa’s Special Investigating Unit has secured a preservation order freezing assets worth R76.5 million linked to businessman Siyabonga Moses Goodwill Nkosi and his associates, in a significant development in efforts to tackle corruption within Eskom.
The order, granted by the Special Tribunal, covers 17 immovable properties and a fleet of seven luxury vehicles, including high end brands such as Lamborghinis and Porsche models. The ruling prevents the sale or transfer of these assets while authorities move to recover public funds lost through irregular procurement practices.
The investigation, authorised by President Cyril Ramaphosa, centres on alleged corruption at Eskom’s Kusile and Matla power stations, where procurement processes were reportedly manipulated between 2021 and 2023.
According to the SIU, officials approved inflated purchase orders for relays, critical components used in power station operations. Equipment with a market value of between R180 and R450 was allegedly procured at prices as high as R50,000 per unit, representing markups exceeding 11,000%. The scheme resulted in an estimated financial loss of R73.65 million to the utility.
Investigators also found that in some cases invoices were submitted without delivery of goods or services, raising concerns about systemic weaknesses in contract management and oversight within Eskom’s operations.
Further irregularities included the deliberate splitting of purchase orders to remain below the R1 million threshold, enabling officials to bypass formal procurement procedures. The SIU also identified the use of false part numbers on Eskom systems, effectively restricting bidding to pre-selected vendors and inflating costs for equipment that remains unused in storage.
The SIU alleges that proceeds from the scheme were channelled through a network of trusts, including the Nkosi Royal Trust, Sibongukukhanya Trust and Siyabonga Kankosi Trust. These entities were reportedly used to acquire properties across Gauteng, KwaZulu Natal and Mpumalanga, as well as to fund the purchase of luxury vehicles.
The preservation order marks a critical step in the SIU’s civil recovery process. The unit has 60 days to institute proceedings to set aside the irregular contracts and reclaim misappropriated funds.
In parallel, any evidence of criminal conduct identified during the investigation will be referred to the National Prosecuting Authority for potential prosecution. The case forms part of a broader crackdown on procurement fraud within South Africa’s state-owned enterprises, a key issue impacting energy security and infrastructure performance across the country.
Author: Bryan Groenendaal
