SIU authorised to investigate corruption and maladministration of nine Eskom contracts

SIU

Cape Town — President Cyril Ramaphosa signed a new proclamation and amended another to authorise the Special Investigating Unit (SIU) to investigate allegations of corruption and maladministration in affairs at Eskom.

In a statement, the SIU revealed it will also look at the Department of Rural Development and Land Reform in a bid to recover any losses suffered by the State. Proclamation 178 of 2024 authorises the SIU to investigate nine Eskom contracts. Those include the following:

  • The procurement of and contracting for coal from Tegeta Exploration and Resources (Pty) Limited for coal supplied by Optimum Coal Mine (Pty) Limited and the Brakfontein Colliery Mine.
  • Procuring and contracting for coal information technology services under a master services agreement concluded with T Systems International GmbH.
  • The procurement of and contracting for information technology services related to software licence and support agreements concluded with SAP South Africa (Pty) Limited.
  • Procurement of and contracting for coal services concerning Task Order SM008 for “capital scrubbing”.
  • The procurement of and contracting for coal security services from Combined Private Investigations (Pty) Limited.
  • The procurement of and contracting for coal forensic investigation services from Kapditwala Incorporated, trading as Dentons South Africa.
  • The procurement of and contracting for information technology services from Cutting Edge Commerce (Pty) Limited (formerly Leonardo Business Consulting).
  • Serious maladministration in connection with the affairs of Eskom relating to a pre-payment by Eskom of approximately R1.68 billion for coal from Optimum Coal Mine to Hendrina Power Station, which pre-payment was later changed to a guarantee.
  • Serious maladministration in connection with the affairs of Eskom relating to a pre-payment by Eskom of approximately R659 million to Tegeta Exploration and Resources (Pty) Limited

The SIU will also investigate any unauthorised, irregular and wasteful expenditure that occurred by Eskom or the State, which will look at any unlawful or improper conduct by officials, employees, suppliers, service providers or any involved parties with Eskom.

The proclamation looks at all unlawful and improper conduct between 1 March 2006 and 30 August 2024, as well as any activities before 1 March 2006, or after 30 August 2024, pertinent to the investigation.

The Proclamation will also amend Proclamation No. 24 of 2017 within the Department of Rural Development and Land Reform and comes after the SIU’s investigation, which said the SIU can further investigate areas that existing proclamations did not cover.

The amendment authorises the SIU to investigate the following areas in the Department:

  • the Bekendvlei, Nirwanda, Wonderhoek, Mont Piquet, Appelkloof and Rietvlei farms.
  • Mike’s Chicken (Pty) Limited, immovable assets and animals for Project Harmonie, Project Uitkyk and Project Dipalemo.
  • Shares in Bambanani Fruits BEE (Pty) Limited regarding the Department’s Proactive Land Acquisition Strategy or the Land Redistribution for Agricultural Development Policy and identifying, selecting, and appointing strategic partners and beneficiaries

The investigation also looks at any unlawful, improper or wasteful expenditures by the Department, or unlawful conduct by any Department officials, employees or service providers.

“Beyond investigating maladministration, corruption, and fraud, the SIU will identify systemic failures and recommend measures to prevent future losses,” SIU spokesperson, Kaizer Kganyago, said.

“The SIU is also authorised under the SIU Act to initiate a civil action in the High Court or a Special Tribunal in its name to address any wrongdoing identified during its investigation resulting from acts of corruption, fraud, or maladministration,” he concluded.

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Compiled by Matthew Petersen

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