Special Investigating Unit investigates allegations of corruption and maladministration at Eskom
30 August 2024
SIU authorised to investigate allegations of corruption and maladministration in nine Eskom contracts and amendment of the Department Of Rural Development And Land Reform investigation
President Cyril Ramaphosa has signed has two proclamations- one new and one amendment- authorising the Special Investigating Unit (SIU) to investigate allegations of corruption and maladministration in the affairs of Eskom Holdings SOC Limited and the Department of Rural Development and Land Reform and recover any losses suffered by the State. Eskom investigations Proclamation 178 of 2024 authorises the SIU to investigate allegations of corruption and maladministration at Eskom regarding the following contracts:
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.
Additionally, the SIU will investigate any unauthorised, irregular, fruitless, or wasteful expenditure incurred by Eskom or the State. The investigation will encompass any unlawful or improper conduct by Eskom officials, employees, suppliers, service providers, or any other involved parties. The Proclamation covers allegations of unlawful and improper conduct that occurred between 1 March 2006 and 30 August 2024, as well as any related activities before 1 March 2006 and after the date of the Proclamation that are pertinent to the matters under investigation or involve the same persons, entities, or contracts.
Department of Rural Development and Land Reform Proclamation 178 of 2024 amends Proclamation No. R.24 of 2017, within the Department of Rural Development and Land Reform. The amendment results from the SIU’s investigations, which revealed that the SIU needs to investigate further areas that the existing proclamations did not cover. The SIU requested a Proclamation amendment in terms of time and focus areas.
The amendment authorises the SIU to investigate the following areas in the Department: The acquisition by the Department or beneficiaries of:
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.
Additionally, the SIU will investigate any unauthorised, irregular, fruitless, or wasteful expenditure incurred by the department or the State. The investigation will encompass any unlawful, improper or corrupt conduct by Department Officials, employees, suppliers, service providers, or any other involved parties. Beyond investigating maladministration, corruption, and fraud, the SIU will identify systemic failures and recommend measures to prevent future losses.
In line with the Special Investigating Units and Special Tribunals Act 74 of 1996 (SIU Act), the SIU will refer any evidence of criminal conduct uncovered during its investigation to the National Prosecuting Authority (NPA) for further action. 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.
Issued by Kaizer Kganyago, Spokesperson, Special Investigating Unit, 30 August 2024
