SIU uncovers fraudulent scheme among Eskom employees

SIU

Cape Town — The Special Investigating Unit (SIU) launched an extensive investigation into corruption at Eskom and revealed schemes involving employees who manipulated procurement processes to siphon more than R1 billion.

SIU Head Advocate, Andy Mothibi addressed the Standing Committee on Public Accounts (SCOPA) and revealed that employees had conducted transactions after hours as to go undetected, revealing that 334 employes had financial ties to Eskom vendors, while a further 5 464 employees did not delcare any conflict of interest, SowetanLIVE reported.

“Some of them were done after hours – not because they were committed to ensuring the work was done but as part of the modus operandi,” Mothibi said.

He said the scheme extended to family members who laundered stolen funds, where senior officials failed to defend Eskom in dispute-resolution cases, and allowed fraudulent claims to be paid out in exchange for kickbacks. He said the Executives and senior members were part of the scheme.

He added that employees also abused emergency procurement processes and had pre-planned to declare emergencies, highlighting that employees were looking to exploit areas of vulnerability.

Mothibi said 194 disciplinary referrals were made to Eskom, while 14 cases were referred to the National Prosecuting Authority (NPA). According to Mothibi, three employees have been arrested so far, including one who was found guilty of seven counts of corruption and two counts of fraud.

Mothibi highlighted the need for more security and transparency when it came to Eskom’s operations, IOL reported.

The investigation was conducted with intricate detail and was a key step towards addressing corruption within the troubled power utility.

Mothibi highlighted urgent strategies the SIU employed to ensure accountability, including the imaging of more than 500 laptops of identified employees. He said it was not enough to vet Eskom officials upon hiring.

He said the investigations cover a two-decade period between 1 January 2003 and 2 December 2022 and focused on maladministration at the Medupi, Kusile and Ingula build projects, with losses estimated to be around R200 billion.

SCOPA heard that the intermediary companies hired to provide security were not fit for the job and in 2023, the SIU started investigating the appointment of George Fivaz Forensic and Risk to gather intelligence for Eskom.

SIU investigator Viven Govender said the investigation of the Fidelity contract around the same time led it to probe two other emergency contracts with similar hallmarks.

Govender said that in one contract, up to 90% of the work was outsourced and Eskom employees contacted intermediaries before actual service providers for quotations.

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Compiled by Matthew Petersen

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