Report says SOEs should be probed by Hawks

A report on a probe commissioned by the National Treasury into procurement procedures at Eskom and Transnet has recommended criminal investigations into the conduct of some senior officials between 2012 and 2016.

The Fundudzi Forensic Services report published by the National Treasury yesterday details, among others, findings of a forensic investigation into the appointment and management of advisory work done by McKinsey and Company SA, Regiments Capital Management and Trillian Capital at Eskom and Transnet.

It says The Hawks should investigate whether officials at Transnet and Eskom, including Anoj Singh, a former group chief financial officer at both utilities, as well as those from McKinsey and Regiments, did not receive gratification in terms of the Prevention and Combating of Corrupt Activities Act.

The Treasury asked Fundudzi to probe whether Singh facilitated the appointment of McKinsey, Trillian or Regiment Capital in Eskom and Transnet and whether this amounted to abuse of a position of authority, a breach of trust or violation of the law.

During the period 2012 to 2016, Transnet appointed McKinsey for advisory service on several projects, including the procument of 1 064 locomotives.

The report finds that McKinsey and Singh compromised the integrity of the procurement process by sharing pointers of a procurement to be initiated prior to the approval of the confinement by former Transnet group CEO Brian Molefe, who like Singh also reprised the role at Eskom.

McKinsey and Regiments started with work relating to projects before the conclusion of the procurement process, with the former using the “letters of intent” issued by Singh as the basis to commence.