Gordhan isn’t aware of crime cartels, but says there’s corrupt elements in and outside Eskom

Public Enterprises Minister, Pravin Gordhan, says he is not aware of any cartels behind the sabotage of Eskom’s power stations as suggested by the utility’s former CEO André de Ruyter.

De Ruyter has made headlines recently, following his interview with eNCA, where the former Eskom boss made several allegations of wrongdoing and criminality within the state-owned enterprises (SOEs).

‘Territorial ruler’

Among other things, De Ruyter alleged that he was aware of four crime cartels operating in Mpumalanga, working to destabilise Eskom since most of the utility’s power stations are located in the province.

He indicated that much of the corruption within Eskom was related to coal theft and fraud.

It has been reported that two unnamed ministers – “henchman” and “assassin” – are allegedly linked to the cartels.

According to City Press, the cartels, which are allegedly backed and protected by a “territorial ruler”, engage in “illicit processes” by exchanging good-quality coal destined for Eskom with poor-quality coal.

ALSO READ: De Ruyter told Gordhan about corruption as two ministers ‘implicated’ in Eskom probe

It is also believed that some officers of the South African Police Service (Saps) are also working with the cartels – including the Presidential Cartel, the Mesh-Kings Cartel, the Legendaries Cartel and the Chief Cartel.

Daily Maverick has also reported that some of the intelligence alleges that Eskom managers, in cahoots with the cartels, deliberately appoint workers with little experience and are deployed to vulnerable power stations where units are at risk of failure until it breaks down.

In addition, much of the crime and corruption can be linked to Eskom’s coal supply chain apart from the rigging of tender processes.

‘Corrupt elements’

Speaking to Newzroom Afrika on Monday, Gordhan denied being aware of the cartels’ existence, saying rather he was aware that there was corruption at Eskom and other SOEs.

“Do I know about the so-called four cartels? No. Do we all know that there are people mischievously mixing coal with stones? Yes. Have I been given names of companies? No,” he said.

“There are businesses on the other side of the equation as well and in fact very little has been said about business culpability in this entire process.”

READ MORE: De Ruyter could see Eskom CEO job was to ‘collaborate with criminals’

The minister said he was of the view that there were “corrupt elements inside and outside of Eskom in each of the areas where money can be made”.

He also said it was possible that police were on the cartels’ payroll.

“Anybody can be bribed if you [are] willing to be bribed, but on the other hand you need to give account of the fact that the police have discovered at least three of many yards where good coal leaves the mine, deposited in this yard, mixed with bad coal or stones and then transported to Eskom’s power stations.”

‘Rumour, suspicion’

Gordhan confirmed that De Ruyter informed him about the criminal activities at Eskom.

“Mr De Ruyter was the CEO, I’m the minister responsible for Eskom and we have discussed corruption and the involvement of various people, not necessarily by name, in corruption in one form or another.

“Yes, he has made allusions about certain individuals but it was precisely that, allusions. And as far as the law is concerned, as far as my understanding of the law is concerned, I can’t just arbitrarily point to someone and say that person is involved in whatever the suggestion is.”

He, however, said that he could not rely on “rumour, suspicion or even what a certain publication calls intelligence”.

“There’s a distinction between that and evidence,” the minister said, adding that if De Ruyter had evidence of wrongdoing, he must report it to law enforcement agencies.

Meanwhile, the African National Congress (ANC) has given De Ruyter seven days to prove and report his corruption allegations to the police.

The governing party will take legal action if the former Eskom boss fails to do so.

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