SIU to investigate nine Eskom contracts

The Special Investigating Unit (SIU) has been authorised to investigate allegations of corruption and maladministration in nine Eskom contracts.

This came after President Cyril Ramaphosa on Friday signed two proclamations to recover any losses suffered by the state.

“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 is pertinent to the matters under investigation or involve the same persons, entities, or contracts,” said SIU spokesperson Kaizer Kganyago.

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Investigations regarding the 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, 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.

Investigations at Department of Rural Development and Land Reform

The SIU requested a proclamation amendment regarding time and focus areas to investigate further areas that existing proclamations do not cover.

The amendment results from the SIU’s investigations showed that: “Proclamation 178 of 2024 amends Proclamation No. R.24 of 2017, within the Department of Rural Development and Land Reform.”

The amendment 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 (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

Kganyago said beyond investigations of maladministration, corruption, and fraud, the SIU will also 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 authorised under the SIU Act to initiate a civil action in the High Court or a Special Tribunal during the investigation.

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