By Thapelo Molefe
The Special Investigating Unit (SIU) has secured a preservation order from the Special Tribunal freezing 17 immovable properties valued at R76.5 million and seven luxury vehicles linked to businessman Siyabonga Nkosi and associated trusts in an Eskom-related corruption investigation.
The order, granted by Judge BM Ngoepe, bars the sale, transfer, or concealment of the assets while the SIU pursues legal steps to set aside irregular contracts and recover public funds allegedly lost through procurement fraud.
According to the SIU, the investigation was authorised under Proclamation R.80 of 2022 and focuses on procurement irregularities at Eskom’s Kusile and Matla power stations between 2021 and 2023.
The SIU said Eskom officials manipulated procurement processes involving relay equipment, which is used to ensure the stability and operation of power stations.
Instead of transparent purchasing, officials allegedly approved inflated and irregular purchase orders that enabled excessive payments for goods that were either overpriced or not properly required.
“Instead of delivering reliable service, Nkosi’s companies delivered invoices,” the SIU said in its findings.
The investigation found that relays were allegedly priced at about R50,000 each, while market prices ranged between R180 and R450. This discrepancy, according to the SIU, resulted in a direct financial loss of R73.65 million to Eskom.
The SIU further alleges that officials deliberately split purchase orders to keep transactions below the R1 million threshold, a practice that allowed them to bypass formal procurement processes. This tactic enabled the use of informal tender procedures and reduced oversight.
It was also found that false part numbers were allegedly uploaded into Eskom’s procurement systems, ensuring that only selected and allegedly colluding vendors could participate in the process. Some of the procured equipment reportedly remains unused in storage years after purchase.
Nkosi is cited in both his personal capacity and as trustee of the Nkosi Royal Trust, Sibongukukhanya Trust, and Siyabonga Kankosi Trust. The SIU says these entities were used as conduits to channel funds originating from Eskom procurement contracts.
The preserved assets include high-value properties located in Gauteng, KwaZulu-Natal and Mpumalanga. The SIU also listed luxury vehicles allegedly acquired through the proceeds, including Lamborghinis, Porsche Cayennes and a Porsche Panamera.
The preservation order means the assets will remain under legal restriction while the SIU prepares to approach the Special Tribunal to have the underlying contracts reviewed and set aside.
“The order allows for the SIU to launch proceedings within sixty days from the date of the order,” the unit said.
SIU said the preservation order is part of broader efforts to recover public funds and prevent further dissipation of assets linked to alleged corruption.
It added that its investigation into Eskom procurement at Kusile and Matla power stations remains ongoing, with further legal action expected as more evidence is processed.
The SIU reiterated that its mandate is to protect public assets and ensure accountability in state procurement processes, particularly in high-value infrastructure sectors such as energy.
“Protecting the public interest and assets through prevention measures and systemic investigations to eradicate fraud, maladministration, and corruption,” the SIU said.
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