Johnathan Paoli
THE Special Investigating Unit (SIU) and the Hawks briefed the Standing Committee on Public Accounts on Tuesday in Cape Town on the intelligence report commissioned by former Eskom CEO Andre de Ruyter.
The intelligence report followed a private investigation commissioned by de Ruyter, who resigned in May 2023 amid allegations of corruption and mismanagement.
The SIU said that it received and analysed the intelligence report, compiled by a company led by former National Police Commissioner called George Fivaz Forensic and Risk, which claimed to expose four criminal cartels operating inside Eskom, allegedly linked to two senior Cabinet members and said to be responsible for sabotaging Eskom’s power stations and destabilising the country.
The report further alleged that there was an illicit procurement process to defraud Eskom and that some of the cartel members were involved in assassination plots.
Both the SIU and the Hawks said that they had found the report to be based on unverified and incomplete information, and that some of its allegations are false or misleading, in addition to questioning the credibility and motive of the report commissioned by de Ruyter.
Upon conducting its own investigation into the allegations of corruption and maladministration at Eskom, the SIU and Hawks said that they had found evidence of irregularities, overpricing, fraud and collusion in various contracts and transactions involving Eskom officials, suppliers, contractors, consultants and intermediaries.
The SIU said that it has finalised 312 investigations, which have resulted in referrals for disciplinary action against 476 officials, referrals for criminal prosecution against 162 persons or entities, referrals for executive action against 27 senior managers or accounting officers, and referrals for tax reviews against 76 persons or entities.
The Hawks said that it finalised 198 investigations, resulting in referrals for criminal prosecution against 132 persons or entities, arrests of 48 persons or entities, seizures of assets worth R1.5 billion, and convictions of 12 persons or entities
Furthermore, the unit said that it has recovered or prevented the loss of R2.3 billion from Eskom, and has instituted civil litigation to recover a further R4.8 billion from persons or entities who have unduly benefited from irregular contracts.
In addition, the SIU said that it had identified systemic weaknesses and vulnerabilities in the governance, procurement, and operational processes of Eskom, and has made recommendations to improve compliance, accountability, and efficiency.
The SIU said that it has collaborated with other law enforcement agencies, such as the Hawks, the NPA and the Asset Forfeiture Unit (AFU) to ensure a coordinated and effective response to the problems at Eskom and that it plans to engage with the Presidency and the Department of Public Enterprises in order to develop a mechanism for the successful monitoring and reporting on the implementation of the SIU recommendations.
The briefing concluded with a reaffirmation of the Hawks and SIU’s commitment to fighting corruption and maladministration at the power utility, and called for the support and cooperation of all stakeholders in ensuring that those who are responsible for wrongdoing are held accountable and that Eskom is restored to its rightful place as a reliable and sustainable provider of electricity to the nation.
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