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SIU freezes assets of Eskom official in R54 million tender scandal

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By Thapelo Molefe

The Special Investigating Unit (SIU) has secured a preservation order to freeze the assets of an Eskom employee and his family following an investigation into an “alleged bribery and corruption scheme” involving a R54 million tender.

The order, granted by Special Tribunal President Judge Margaret Victor, targets an Eskom surveyor and project manager Johannes Seroke Mfalapitsa, his spouse Ndiyafhi Denge, and associated individuals. 

It prevents them from “selling, disposing, leasing, encumbering, transferring, donating, or dealing in any manner whatsoever” with the assets while the SIU pursues civil action to recover the state’s losses.

According to the SIU, Mfalapitsa allegedly received payments through a network of family and associates. 

“Over R8 million in payments were made to him and his family from companies unlawfully favoured in a R54 million tender,” SIU spokesperson Kaizer Kganyago said in a statement on Tuesday.

Investigators found that Mfalapitsa acted as the “Employer’s Agent” and technical evaluator for Eskom’s tender for High-Definition Surveying Services.

His spouse, Denge, allegedly received over R2.2 million, while his brother, David Mfalapitsa, received over R228,000 from a service provider’s director.

The network extended to Mpho Negondeni, described as a woman Denge raised as her own, and her company, Tabogambambe (Pty) Ltd, which were used as conduits for illicit payments. 

“Over R3.6 million flowed from service providers to them, which was then used to pay for the construction of the Bendor property and to make payments to Ms Denge,” the SIU said.

The investigation revealed that Mfalapitsa occupied multiple conflicting roles in the tender process, in direct violation of Eskom’s Conflict of Interest Policy. 

“He helped draft the tender’s scope of work, evaluated bidders’ technical submissions, and was appointed the Project Manager for the awarded contract,” Kganyago noted.

Crucially, the SIU found that “while evaluating bids, his spouse was already receiving payments from one of the bidders, NTG Solutions CC. He failed to declare this in his annual conflict of interest declarations from 2016 to 2024.” 

Mfalapitsa is currently suspended, and the SIU has referred the matter for disciplinary action.

Forensic analysis of bank statements shows that Eskom paid three service providers, Buzwe Geomatics Engineering Services, NTG Solutions, and Litha Langa Consulting,more than R29 million under the contract.

The SIU said that these companies then made “a series of round-figure, VAT-less payments to entities and individuals linked to Mr Mfalapitsa.”

Buzwe, which received the largest share, allegedly funneled approximately R7 million to the Mfalapitsa network.

Evidence suggests that Mfalapitsa “favoured Buzwe in work allocations, against his supervisor’s advice,” and that funds were used to purchase building materials, pay contractors, and add luxury features, including a swimming pool and balustrades, at the Bendor property.

The SIU has preserved two key assets believed to be proceeds of the scheme. The first is a luxury property in Bendor, Limpopo, valued at approximately R3.9 million. 

The SIU states that “at least R1.5 million of its construction costs originated from unlawful payments.” The second is a Nissan NP200 motor vehicle, allegedly acquired by Mfalapitsa from another Eskom employee using funds traced to the scheme.

The SIU plans to institute civil action in the High Court or Special Tribunal to review and set aside Eskom’s award of the tender and to recover financial losses.

In the meantime, any evidence pointing to criminal conduct has been referred to the National Prosecuting Authority (NPA) for further action.

“The SIU is empowered to take civil action to correct wrongdoing caused by acts of corruption, fraud or maladministration,” Kganyago said.

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