Eskom scrutinising over 6 000 contracts

ESKOM is reviewing more than 6 000 contracts with a value more than R1 billion each and those below the R1bn mark, following reports of corruption and state capture.

Eskom board member Sindi Mabaso-Koyana and acting chief executive Phakamani Hadebe told Parliament yesterday they were cracking down on corruption.

In addition, the power utility is investigating 239 employees for irregularities at Eskom. This excludes 24 employees also under investigation for doing business with the company.

One employee had a contract worth R26 million.

“On the 24 employees that contravened policy, they came to tell us the previous leadership encouraged them to do business with Eskom,” she said.

Former acting chief executive and head of generation Matshela Koko’s stepdaughter had a contract worth R1bn.

He was cleared in the earlier probe, but Eskom launched fresh charges against Koko before he resigned.

Mabaso-Koyana said since they took over in January five executives, including Koko, ex-chief financial officer Anoj Singh and former acting chief executive Sean Maritz, have resigned.

She said four more executives were on suspension pending an investigation.

Hadebe said they would apply that Koko, Singh and others be declared delinquent directors. This would prevent them from serving on any board or at a company.

Eskom has also issued an instruction that no employee will now do business with the company.

Mabaso-Koyana said: “On this recovery plan, we are reviewing 97% of all the contracts above R1bn,” she said.

Mabaso-Koyana also said they would no longer do business with McKinsey and Trillian.

She told the portfolio committee on public enterprises that McKinsey was willing to pay back the R1bn and Trillian was resisting paying back R500m.

The power utility is demanding the R1.5bn back from the two companies, after it found the money was paid irregularly.

Mabaso-Koyana said they wanted to steer clear of state capture links, hence an investigation and a review of the contracts.

“We are saying any company implicated during state capture, we want to steer clear of that.

“It is important for us as a board to move away from trouble. We are reviewing all the contracts.

“We are starting with those above R1bn and those below R1bn,” said Mabaso-Koyana.

She said they would later move to other contracts, and could not say how long the review would take.