Eskom sets out to catch crooked ex employees
Ropes in Sars, the Hawks and the NPA to go after those involved in malfeasance
ESKOM has roped in the SA Revenue Service (Sars), the Special Investigating Unit (SIU), the Hawks and the National Prosecuting Authority (NPA) to go after former employees and suppliers implicated in malfeasance at the power utility.
A number of former top Eskom executives and companies are in the firing line for the widespread looting at the power utility over a number of years.
Eskom said it is gunning for all previous senior employees who have left its employ and are implicated in malfeasance of any kind.
“In its efforts to recover financial losses against suppliers and former employees, Eskom is working closely with Sars, the SIU, the Hawks, and the head of investigations at the office of the National Director of Public Prosecutions,” an Eskom report said.
The power utility is working in collaboration with law enforcement agencies such as the NPA and the Hawks to have criminal charges instituted against them.
Mkhuleko Hlengwa, chairperson of the standing committee on public accounts (Scopa) said the committee’s stance on the matter was known and was publicly communicated late last month in a parliamentary statement.
Scopa said when it met with Public Enterprises Minister Pravin Gordhan and Eskom’s CEO, André de Ruyter, among others, it requested the power utility to submit a report on how it was planning to claw back the money stolen from it.
The SIU is also conducting investigations into Medupi and Kusile, focusing on procurement contracts, claims brought by contractors, variations, and dispute adjudication assessments, including coal contracts, prepayments and bank guarantees.
Energy expert Ted Blom said: “Kusile moved from the initial scope or budget of around R33 billion to board approval of around R69bn after the first frauds, scope changes and Chancellor House intervention.
“Thereafter it became a ‘free for all’ and ballooned to R250bn, where it stands now.
“The cost to the company is estimated to be R300bn by 2026, if we are lucky. Eskom needs every dollar to pay down the ballooned debt of close to R500bn, otherwise, the consumer will pay,” Blom said.
The focus on former executives and managers follows Gordhan’s writing to ANC chief whip Pemmy Majodina in a letter dated July 6 that Eskom had overpaid by R4bn to companies it does business with at the Kusile power station.
The overpayments have been referred to the SIU, the police and the NPA while being subjected to forensic investigations.
ABB South Africa, Tubular Construction Projects, the Stefanutti Stocks Basil Read joint venture and the Stefanutti Stocks Izazi joint venture were each overpaid by R1bn while Tenova Mining and Minerals SA received R735m and various site service contracts not in the scope of the SIU received R180m.
Eskom said no consequences or actions had been meted out as yet as the investigation by the SIU and the Hawks was incomplete and none of the main role players were currently working for power utility.