Ghost vendors bust in swoop on syndicate runners in Soweto

ESKOM, together with the Hawks, has made a major breakthrough busting seven runners for a syndicate selling prepaid electricity at a discount in Soweto.

Five of the seven appeared in the Protea Glen Magistrate’s Court yesterday. They had warrants of arrest against them for selling illegal, prepaid electricity vouchers, a crime also known as ghost vending.

Ghost vending is costing Eskom R300 million a year – or a quarter of its R1.2 billion annual revenue losses in the prepaid sector.

The case was postponed to December 2. Bail of R50 000 each was set for the five. The suspects will remain in custody pending payment of bail.

The other two were ordered to report to Moroka and Meadowlands police stations.

The suspects, whose cases date as far back as 2011, are believed to be runners for a ghost-vending syndicate operating across provincial borders, selling illegal prepaid power vouchers to customers through offers of “cheap” electricity. For example, they sell electricity worth R400 for R200.

The scheme works off stolen vending machines. Syndicates continue using the machines and printing vouchers that Eskom can’t stop remotely. It’s only when the machine is physically found that it can be stopped.

The arrests were part of an undercover operation led by the Hawks and Eskom’s investigations and revenue protection teams.

Tip-offs can be sent to 32211.