Eskom welcomes judgment ordering employee who stole money to pay it back

Eskom says it continues to improve its internal controls to prevent further fraud by employees. 

This follows a recent landmark judgment ordering a former employee to repay all the money he stole from the power utility when he was employed as a finance manager at Kriel power station.

Sifiso Masina was found guilty by the Kriel magistrate's court on April 26 and sentenced to eight years in prison, wholly suspended for five years, on certain conditions, including that he repay Eskom.

The power utility suffered a financial loss of R513,630 after Masina created invoices and submitted them for payment for work that was not done in 2012. 

The court ordered that Masina make an immediate payment of R30,000 and 48 instalments of R10,000 a month until April 1 2027 to settle the balance. 

“Eskom is disappointed that someone in a position of trust defrauded the organisation. Eskom continues with the implementation the fraud risk prevention plan to maximise fraud prevention and enhance good corporate governance practices,” Eskom said in a statement.

Eskom said the implementation of the plan was monitored by the anti-fraud and corruption integration committee (AFCIC) which also ensured integration between forensic, legal, ethics, industrial relations and supplier review functions.

Masina was caught after an internal investigation by Eskom which found that he created and paid invoices for work that had not been done.

“The money was channelled through the suppliers and was withdrawn as cash from the accounts of Lutshala CC and Mandlenkosi CC, of which he had direct control.

“He resigned from Eskom with immediate effect on November 27 2012 pending a disciplinary process after a forensic investigation into financial misconduct had been concluded,” Eskom said. 

Masina was then found guilty on all charges of financial misconduct during a disciplinary hearing that was conducted in his absence in December 2012. A criminal case was opened with police immediately. 

Masina pleaded guilty to the charges in July last year.

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