Ex-Eskom execs under fire over R4bn overpayments
A NUMBER of former top Eskom executives are in the firing line for the widespread looting at the power utility over a number of years, including overpaying R4billion to companies it was in business with at the Kusile power station.
The EFF yesterday demanded criminal charges against all current and former Eskom employees who were complicit with the “deliberate” overpayments to companies that looted the power utility under the guise of construction work at the Kusile power station.
Public Enterprises Minister Pravin Gordhan wrote to ANC Chief Whip Pemmy Majodina, in a letter dated July 6, that Eskom had overpaid by R4bn to companies it was in business with at Kusile. The standing committee on public accounts has demanded a report from Gordhan and Eskom’s chief executive, André de Ruyter, on the plan to recover the money stolen from the power utility.
The overpayments have been referred to the Special Investigating Unit (SIU), the police and the National Prosecuting Authority 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. According to Eskom, the project director, the project’s employer representative and the project senior contracts manager who were involved with the settlement and negotiations either resigned with immediate effect when the investigations were initiated or resigned prior to the initiation of the probe.
The EFF said the corruption revealed that there was deliberate mismanagement at Eskom. “This corruption proves to us that the frequent power cuts that have riddled the nation and instability at Eskom were not due to the utility being an inherent burden, rather there has been deliberate mismanagement of funds and poor construction that has led to the crisis facing Eskom,” it said.
Eskom’s effort to recoup the R4bn will be a tough task as some of the companies are under strain. Basil Read, which got a cut of R1bn, was in June 2018 placed under business rescue and for Eskom to get the money, it must file for a claim with the business rescue practitioners.
Stefanutti, which benefited from the 2010 corruption, also scored a billion rand from Eskom. Another company that was overpaid by Eskom was ABB, a Swiss company with operations across Africa. Eskom said no consequences or actions have been meted out as yet as the investigation by the SIU and the Hawks is incomplete and that none of the main role-players are currently working for the power utility.
“In its efforts to recover financial losses against suppliers and former employees, Eskom is working closely with the SA Revenue Service, the Special Investigating Unit, the Hawks, and the head of investigations at the office of the National Director of Public Prosecutions,” reads the report, dated June 10.