Asset Forfeiture Unit scores half a billion rand restraint order against former ABB South African employees, their wives and Eskom sub-contractors
20 April 2023
The High Court of South Africa: Gauteng Local Division, Johannesburg on 06 April 2023 awarded a provisional restraint order valued at R583.8 million in favour of the NPA's Asset Forfeiture Unit (AFU). The restraint order was granted in terms of Section 26 of the Prevention of Organised Crime Act 121 of 1998 and today has been served and enforced against 6 accused and 14 interested parties.
Former ABB South Africa (ZAABB) employees, Mohammed Essop Mooidheen and Vernon Pillay, together with their wives Raeesa Mooidheen and Aradhna Pillay, Eskom subcontractor Impulse International (Pty) Ltd (in liquidation) and Indiwize Construction, stand accused on charges of corruption, money laundering, fraud, forgery and uttering in the Palm Ridge Regional Court. The offences were allegedly committed in relation to contract prices in 2016 and 2017 between ZAABB, as a subcontractor of Eskom, and Impulse. It is alleged that the contract was unlawfully concluded and that the contract price was inflated.
During 2015, ZAABB was awarded and then concluded a contract with Eskom in respect of the Control & Instrumentation (C&I) System for Units 1 to 6, and the Balance of the Plant at Kusile. The value of the contract was R2.2 billion. Some ZAABB employees were allegedly prepared to look the other way and bend the rules. ZAABB’s success in winning the C&I tender has brought about a scheme involving primarily certain employees of ABB, the Leago Group (through its chairman Thabo Mokwena) and Matshela Koko of Eskom. When the alleged relationship between Koko and Mokwena soured, a new scheme was devised involving Impulse. Koketso, Koko’s stepdaughter, was appointed as a shareholder of Impulse and served as its director from 31 March 2016 to 06 October 2016.
Mooidheen and Pillay were in senior positions at ZAABB where they could abuse their positions in favour of Impulse. Pillay and Mooidheen both played a role in the extraordinary approval decisions and the manipulation of procurement and governance processes to the advantage of Impulse, Impulse’s appointment, and the payment of excessive rates. In return for these favours, Mooidheen, his wife Raeesa, Pillay and his wife Aradhna received gratification from Impulse, which was laundered through Indiwize. Impulse and Indiwize had the same director, namely, the late Pragasan Pather. These gratifications consisted of cash and motor vehicles. The motor vehicles were registered in the names of Raeesa and Aradhna to hide the proceeds of the crimes they have been charged with, namely, corruption, money laundering and fraud.
‘’NPA has a 2-pronged strategy to prosecute and take away assets. This is a clear execution of that strategy’’ said the DNDPP: Asset Forfeiture Unit, Adv Ouma Rabaji-Rasethaba.
In court papers, it was submitted that the defendants received benefits totalling R583.8 million. In addition, R24 million was siphoned to employees of Impulse.
The curator has restrained several properties in Gauteng and KwaZulu-Natal today.
The matter forms part of a broader investigation by the Investigating Directorate into corruption at Eskom, assisted by the Hawks. The criminal leg of the matter returns to court on 09 May 2023.
This is the second positive stride linked to corruption. Last year, the Investigating Directorate scored R2.5bn from international company ABB, paid into the Criminal Asset Recovery Account (CARA), administered by National Treasury in January this year.
Issued by Sindisiwe Seboka, Investigating Directorate National Spokesperson, 20 April 2023
