South Africa’s SIU authorised to investigate allegations of corruption and maladministration in nine Eskom contracts

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  • South Africa’s President, Cyril Ramaphosa, has authorised the Special Investigating Unit (SIU) to investigate allegations of corruption and maladministration in the affairs of Eskom Holdings SOC Limited and recover any losses suffered by the State.

Eskom investigations

Proclamation 178 of 2024 authorises the SIU to investigate allegations of corruption and maladministration at Eskom regarding the following contracts:

  • The procurement of and contracting for coal from Tegeta Exploration and Resources (Pty) Limited for coal supplied by Optimum Coal Mine (Pty) Limited 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 (Pty) Limited.
  • Procurement of and contracting for coal services concerning Task Order SM008 for โ€œcapital scrubbingโ€.
  • The procurement of and contracting for coal security services from Combined Private Investigations (Pty) Limited.
  • 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 (Pty) Limited (formerly Leonardo Business Consulting).
  • 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 (Pty) Limited.

Additionally, the SIU will investigate any unauthorised, irregular, fruitless, or wasteful expenditure incurred by Eskom or the State. The investigation will encompass any unlawful or improper conduct by Eskom officials, employees, suppliers, service providers, or any other involved parties.

The Proclamation covers allegations of unlawful and improper conduct that occurred between 1 March 2006 and 30 August 2024, as well as any related activities before 1 March 2006 and after the date of the Proclamation that are pertinent to the matters under investigation or involve the same persons, entities, or contracts.

The SIU is also authorised under the SIU Act to initiate a civil action in the High Court or a Special Tribunal in its name to address any wrongdoing identified during its investigation resulting from acts of corruption, fraud, or maladministration.

Author: Bryan Groenendaal

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