POWER utility Eskom says that it is implementing a full screening and security sweep of all its active contracts in a bid to clamp down on high-level crimes that have ravaged its operations over the years.
Eskom made several key arrests in 2022 related to the theft of coal, and diesel and one case of active sabotage.
In November, a truck driver and his supervisor from a transport company subcontracted to haul coal to the group’s Matla Power Station were arrested for allegedly stealing good quality coal and replacing it with poor quality product.
Two security guards employed by a company contracted by Eskom to protect Port Rex Power Station in East London were arrested for stealing 5,863 litres of diesel also in November, and in two separate incidents, truck drivers delivering coal to Camden and Kendal power stations were also arrested.
One of the biggest arrests was a contractor working at the Camden Power Station, who was arrested after he was positively linked to an incident of sabotage,
The saboteur – a contract worker – confessed that he purposefully damaged equipment to cause a breakdown at the power station so that his employer could get more maintenance contracts from the power utility.
These high-level crimes are taking place while the country experiences the worst levels of load shedding on record.
Criminal elements have caused billions of rands worth of damage and losses to Eskom over the years, as syndicates infiltrated companies contracted to work at its power stations and used contracts with the company to siphon millions of rands.
The levels of criminal activity at Eskom got so bad that the South African National Defence Force (SANDF) had to be called in to guard the infrastructure in December 2022, and to assist security forces in keeping generation capacity safe.
Responding in a parliamentary Q&A this week, Eskom – through the Department of Public Enterprises – revealed that it is making use of various security measures, both human and technological, and various detection and monitoring systems to secure its power plants.
In order not to compromise security measures, the details of the systems in place have been deemed sensitive, and disclosure is limited.
However, Eskom did note that its security is in the process of screening all active contracts, including employees of contractors employed at Eskom sites and companies against whom investigations (criminal, civil or disciplinary) have been launched, conducted/completed, or are in progress.
“The law enforcement agencies, particularly the State Security Agency, is also engaged in assisting Eskom in conducting the screening of contractors and suppliers to Eskom,” it said.
In addition, Eskom has instructed that the SAPS security clearance checks are required for contractors prior to granting admission to Eskom sites.
“Eskom Security is compiling a database of companies and persons to enable the listing/red-flagging of individuals and entities as part of due-diligence investigations,” it said.
Eskom said it has a risk-based approach to perform contract reviews in which all flagged contracts are subjected to a preliminary investigation to empower management to make informed decisions.
“The flagging instruments are in the form of contract management in which contract performance is monitored; the Fraud Hotline where stakeholders can report suspicious contracts; internal and external audit findings; as well as complaints the Procurement & Supply Chain Management system,” the group said.
Eskom said it is also enforcing controls on new contracts and those which are being targeted for modifications or review.
“In addition, where there is irregular expenditure on contracts, they are reviewed for elements of fraud and corruption,” the group said.
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