Mail & Guardian

SIU accuses De Ruyter of misrule

Andy Mothibi told MPS that the former Eskom chief executive could face legal action

- Emsie Ferreira

Former Eskom chief executive André de Ruyter had made himself guilty of maladminis­tration by initiating a privately funded forensic investigat­ion into corruption at the power utility and might face legal action, Special Investigat­ing Unit (SIU) head Andy Mothibi said this week.

He told parliament’s watchdog standing committee on public accounts (Scopa) that it was plain that the Eskom board had not authorised the inquiry and was not privy to the findings delivered by George Fivaz Forensic and Risk.

“It is a very important governance issue and really points to a measure of maladminis­tration, and that to our view, as far as investigat­ions were done by this private company into the affairs of Eskom, it was unauthoris­ed,” Mothibi said.

“Considerat­ion should be given to hold the former GCEO [group chief executive officer] to account. This is an interestin­g question that we have, and it becomes a legal question, as he is no longer employed by Eskom and, in this regard, we have said that we will consider the options that are available, together with the board, and advise accordingl­y.”

He noted that De Ruyter was reportedly lecturing at Yale University in the US but said this would not stop charges being brought against him. Mothibi said steps could also be taken against the forensic firm run by former national police commission­er George Fivaz.

“They should know, or alternativ­ely reasonably ought to have known, that they could not conduct an investigat­ion in a state institutio­n without the necessary authority. We will consider the nature of the action to be recommende­d,” he said.

Mothibi said the SIU had scrutinise­d the agreement with the firm, which was hired in January 2022 to conduct the investigat­ion, and confirmed that Eskom was not party to the contract. It was a direct agreement with Business Leadership South Africa (BLSA) for work to be done over a six-month period at a cost of roughly R17.1 million.

“The extent to which it investigat­ed and got informatio­n related to Eskom, to us, that is problemati­c,” he said

The scope of the investigat­ion was to assess all threats to the stability of power supply to households, commerce and industry, he said.

Fivaz had confirmed that the fees were paid by the BLSA and private individual­s but declined to name these, Mothibi said. The SIU also interviewe­d BLSA executive director Busi Mavuso.

Mothibi said not only did the Eskom board not approve the investigat­ion, it was also not briefed on the findings, adding that acting chief executive Calib Cassim recently asked the unit for a copy of the report produced by Fivaz’s investigat­ors.

“We will still revert to him in that regard,” he said.

It has been a point of bitter dispute in recent months as to whether De Ruyter had cover for calling in private investigat­ors and whether he had made sure that law enforcemen­t agencies, the Eskom board and the shareholde­rs were briefed on their findings. Much of this war of words has played out in Scopa meetings.

De Ruyter was interviewe­d by the committee in April, months after he left Eskom before the end of his notice period after inferring in a television interview that senior ANC politician­s were involved in corruption at the power utility and that cabinet members knew as much.

Former Eskom acting chairman Malegapuru Makgoba told Scopa that Public Enterprise­s Minister Pravin Gordhan had encouraged De Ruyter to mount an intelligen­cegatherin­g exercise.

But Gordhan vehemently denied this, telling MPS that Makgoba was “misleading and misinformi­ng Scopa and the public”. He said De Ruyter had mentioned the intelligen­ce-gathering operation “merely in passing”.

“He was operating on his own free will on this project and it seems, at the same time, he was writing a book as well, other than focusing on his job of keeping the power stations providing electricit­y to South Africans.”

In sharp contrast to Makgoba, the current chairperso­n of the board Mpho Makwana accused De Ruyter of misleading the public, bringing the company into disrepute and breaching a raft of laws.

On Tuesday, Mothibi stressed that “the accounting authority, being the Eskom board, did not authorise the investigat­ion”.

‘The accounting authority, being the Eskom board, did not authorise the investigat­ion’

He said there was some “useful” informatio­n in the report the investigat­ors had delivered but maintained that the SIU was not aware of its existence, or even of the investigat­ion, until the day before De Ruyter appeared before Scopa in April, and suggested the same applied to the police and to the Directorat­e for Priority Crime Investigat­ion (the Hawks).

“We are of the view that the GCEO was under obligation to report those allegation­s and he failed to do so.”

In an interview with the Mail & Guardian in May, De Ruyter denied this. He said he had given the police far more informatio­n, over the course of many months, than he had divulged in the television interview that triggered his early departure from Eskom.

The ANC has initiated defamation proceeding­s against him for agreeing with the premise, put to him in that interview, that the parastatal had become a feeding trough for the ruling party.

But lawyers for the party said on Tuesday that attempts to serve summons on De Ruyter had been complicate­d by the fact that he had moved to the US from Germany, where papers had been delivered to the local sheriff.

Eskom is yet to appoint a new chief executive.

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