R2.2 billion Kusile corruption case takes new turn with latest arrest

The corruption surrounding the construction of the Kusile power station in Mpumalanga continues to unfold, following another high profile arrest.

The National Prosecuting Agency (NPA) said another suspect – Lese’tsa Johannes Mutchinya – was arrested at his Gauteng residence on Wednesday.

Kusile R2.2 billion corruption

The case has been in the spotlight since 2020.

Mutchinya was charged with money laundering and will join 16 other suspects and companies who have already been arrested and charged.

Latest developments

Mutchinya appeared before the Middelburg Specialised Commercial Crimes Court on Wednesday, and was granted bail of R100 000.

The NPA’s Investigating Directorate Spokesperson Sindisiwe Seboka said stringent bail conditions were imposed.

Mutchinya allegedly laundered R3.1 million through his companies.

Seboka said: “The companies allegedly used to launder money are still to be added in the next court appearance.”

He is expected to reappear in court on 4 September 2023.

Background and ongoing investigations

To date, numerous inviduals have been charged, including former SA Local Government Association (Salga) Chief Executive Thabo Mokwena,

Eskom’s former interim Chief Executive Matshela Koko and several others have been charged as well.

Their charges range from fraud, corruption, money laundering, tax evasion, and unauthorised gratifications related to Kusile’s construction.

An investigation by the Specialised Investigating Unit (SIU) in 2020 found that companies allegedly received overpayments amounting to R4 billion.

Details regarding the companies used to launder money are expected to be revealed in a future court appearance.

READ: Ex-Eskom bosses fail in request for further disclosure on R745m Kusile matter

International implications

The case reached international jurisdictions, with the extradition trial of Ex-Tubular holdings advisor Michael Lomas in London.

His arrest and subsequent legal proceedings was facilitated through international conventions.

On Wednesday, Seboka emphasised the far-reaching implications of the Kusile corruption case, with connections extending well beyond South Africa’s borders.