R1.8bn Eskom tenders reported to authorities
ESKOM auditing irregularities reported to the authorities were in relation to Impulse International – at which former Eskom acting chief executive Matshela Koko’s stepdaughter was a director – and the reinstatement of former CEO Brian Molefe, the utility’s spokesman Khulu Phasiwe said.
Eskom’s internal auditors SizweNtsalubaGobodo had raised these irregularities as part of its year-end audit of the state power utility, Phasiwe said.
The Independent Regulatory Board for Auditors (Irba) said last week it had referred audit irregularities at Eskom and Transnet, reported by SizweNtsalubaGobodo, to the authorities.
In terms of the Auditing Profession Act, a reportable irregularity is any unlawful act or omission committed by any person responsible for the management of an entity that has caused, or is likely to cause, material financial loss to the entity, is fraudulent or amounts to theft, or represents a material breach of fiduciary duty.
Irba chief executive Bernard Agulhas said that the board had referred the continuing irregularities concerning Eskom to the Companies and Intellectual Properties Commission, the auditor-general and the Department of Public Enterprises.
Although Agulhas could not comment on the nature of the irregularities, Phasiwe said one was about awarding tenders to Impulse International.
The Sunday Times reported in March that, following the appointment of Koko’s stepdaughter, Koketso Choma, as a director at Impulse International in April 2016, the company had been awarded eight lucrative contracts from a division formerly headed by Koko.
Impulse International had been awarded R1.8-billion in Eskom tenders from 2014.
Choma is no longer listed as a director, but her business partner, Pragasen Pather, was in continuous contact with Koko days before Eskom awarded multimillion-rand contracts to the company, according to the Sunday Times.
Phasiwe said the Eskom board had taken adequate steps to the satisfaction of its auditors that the irregularities relating to Impulse International were no longer continuing. Recommendations stemming from a board investigation into the matter had been sent to Public Enterprises Minister Lynne Brown, he said. Regarding Molefe’s matter, “it was noted that the irregularity could only be closed out when the court proceeding had been concluded”, Phasiwe said.
Agulhas said one Transnet irregularity had been referred to the Hawks, the auditor-general, the Department of Public Enterprises and the Department of Labour. A second report was still being processed.
Transnet had not responded to a request for comment at the time of publication. — BDLive