Eskom taking legal action against ‘fraudsters’
● The department of public enterprises and Eskom have confirmed they are in the process of implementing various legal mechanisms against both employees and former suppliers suspected of defrauding the stateowned enterprise.
Public enterprises minister Pravin Gordhan said in response to questions from the Sunday Times that “the Eskom board and management are working on various legal mechanisms to both recover funds and ensure that appropriate enforcement actions must be taken”.
It is alleged that Stefanutti Stocks, ABB SA, and Tubular Construction Projects each received R1bn in overpayment for work done for Eskom, according to reports.
This week it was reported that Eskom, the Hawks and the National Prosecuting Authority would be focusing on the prosecution of ABB SA, Tubular Construction Projects, Stefanutti Stocks, Impulse International, Tenova Mining and Minerals SA.
Eskom spokesperson Sikonathi Mantshantsha told the Sunday Times on Friday that in due course legal action will be taken against suspects who include former Eskom executives and employees, as well as people who may not have worked for Eskom.
He said Eskom has always stated that its moral obligation is to do everything it can to recover every cent, and this will assist in reducing its current R500bn debt.
Stefanutti Stocks CEO Russell Crawford was not available for comment. According to his media spokesperson, Deborah Chapman, the matter is under investigation and until there is an outcome the company will not comment.
A Stock Exchange News Service announcement issued by the company on July 8 said: “Stefanutti Stocks disputes that it, or the joint ventures in which it participates, have been overpaid.”
The company added that the joint venture between Stefanutti Stocks and Basil Read, SSBR-JV, is “owed additional amounts in respect of work done” and that they are in a claims resolution process with Eskom.
ABB’s senior media relations manager, Eike Christian Meuter, said that based on findings during an internal investigation, the company had self-reported “potential suspect payments and other compliance concerns in connection with some of the company’s dealings with Eskom and related persons” to the Securities and Exchange Commission and the department of justice in the US, and to various authorities in SA and other countries.
She said ABB has made it public that it is expecting an “unfavourable outcome in one or more of these matters”.
Tubular Construction Projects CEO Tony Trindade and his attorneys, who are reported to be RHK Attorneys, did not respond to requests for comment.
On December 19 last year Trindade was granted bail in the Johannesburg magistrate’s court.
He appeared alongside two former senior Eskom executives, Abram Masango and France Hlakudi, and businessman Maphoko Kgomoeswana, in connection with alleged fraud and corruption linked to the Kusile power station construction project.
Impulse International Group CEO Pragason Pather refused to comment. Former Eskom CEO Matshela Koko’s stepdaughter, Koketso Choma, was part-owner of Impulse International.
Tenova Mining did not respond to a request for comment, and Minerals SA could not be reached for comment.