Limpopo businessman accused of defrauding Eskom wants plea deal

A Limpopo businessman, accused of defrauding Eskom of millions of rands, wants a plea deal instead of going to trial.

Maphoko Hudson Kgomoeswana appeared in the Pretoria Specialised Commercial Crimes Court on Monday.

Plea proposal

Investigating Directorate Against Corruption (IDAC) spokesperson Henry Mamothame said the tax and fraud case was postponed to 05 May 2025 for plea negotiations.

“The Investigating Directorate Against Corruption (IDAC) did not accept the plea proposal put forward by the accused on Friday, 21 February 2025.

“The IDAC was ready to proceed with trial. However, the court held it to be in the interest of justice to afford the accused a further opportunity to deliberate with the IDAC on a possible plea,” Mamothame said.

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Charges

Kgomoeswana is facing charges of fraud and tax evasion valued at approximately R18 million.

The charges relate to his personal and business tax involving his company, Babinatlou Business Services CC, between 2016 and 2018.

The offences were discovered during the investigations into the alleged corruption at Eskom’s Kusile power station.

Mamothame said Kgomoeswana is currently out on a warning.

“The court warned him to avail himself when the matter resumes in May 2025.”

Money laundering

Kgomoeswana has also been charged in a related matter involving R745m fraud, corruption and money laundering alongside two former Eskom executives, France Hlakudi and Abram Masango, and two other businessmen, Antonio Jose da Costa Trindade and Michael Lomas.

Kgomoeswana is the sole member of Babinatlou Business Services, which is accused of being used as a vehicle to facilitate Tubular Construction Projects’ payment of kickbacks to Masango and Hlakudi.

Extradition

In September last year, Lomas was extradited to South Africa from the United Kingdom (UK) in connection with the upgrade of Eskom’s Kusile Power Station

He was arrested by British police in April 2021 at the request of the South African authorities and subsequently granted bail of £ 100,000 (R1.7 million at the time).

The state alleges that Eskom paid R745 million to Tubular Construction Projects after Masango and Hlakudi fraudulently advocated for the company to receive a contract to build air-cooled condensers at Kusile.

This led to additional costs for Eskom, escalating the contract’s total to R1.4 billion.

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