SIU to investigate Eskom contracts

The Special Investigating Unit (SIU) will investigate allegations of corruption and maladministration in nine Eskom contracts after President Cyril Ramaphosa signed a proclamation authorising the corruption-busting unit to probe the power utility’s affairs.

The SIU said it will investigate the following contracts:

• The procurement of and contracting for coal from Tegeta Exploration and Resources for coal supplied by Optimum Coal Mine 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.
• 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.
• 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 (formerly Leonardo Business Consulting).
• Serious maladministration in connection with the affairs of Eskom relating to a pre-payment by Eskom of approximately R1.68b 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 R659m to Tegeta Exploration and Resources.

“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 March 1, 2006 and August 30, 2024, as well as any related activities before March 1, 2006 and after the date of the Proclamation that are pertinent to the matters under investigation or involve the same persons, entities, or contracts,” the SIU said.

Meanwhile, the unit said the proclamation authorising it to investigate allegations at the Department of Rural Development and Land Reform has been amended.

“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 unit said.

The amendment additionally authorises the SIU to investigate the acquisition by the department or beneficiaries of:

• The Bekendvlei, Nirwanda, Wonderhoek, Mont Piquet, Appelkloof and Rietvlei farms.
• Mike’s Chicken, immovable assets and animals for Project Harmonie, Project Uitkyk and Project Dipalemo.
• Shares in Bambanani Fruits BEE 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 concluded. – SAnews.gov.za