SIU authorised to probe nine Eskom contracts

President Cyril Ramaphosa has signed an amended proclamation authorising the Special Investigating Unit to investigate allegations of corruption and maladministration relating to nine Eskom contracts. 

The proclamation authorises the SIU to investigate allegations regarding:   

• The procurement of and contracting for coal from Tegeta Exploration and Resources for coal supplied by Optimum Coal Mine 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.
•  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.
•  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 (formerly Leonardo Business Consulting).
•  Serious maladministration in connection with the affairs of Eskom relating to a prepayment by Eskom of about R1.68bn for coal from Optimum Coal Mine to Hendrina Power Station, which prepayment was later changed to a guarantee, and
•  Serious maladministration in connection with the affairs of Eskom relating to a prepayment by Eskom of about R659m to Tegeta Exploration and Resources.

Additionally, the SIU will investigate any unauthorised, irregular, fruitless, 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. 

AfriForum welcomed the announcement and said it considered the proclamation a giant step towards promoting accountability,

The organisation said it had submitted an application in July 2022 in terms of the Promotion of Access to Information Act to Eskom to obtain information about its coal and diesel contracts. It said it believed Eskom’s coal and diesel contracts contained information that might expose irregularities and corruption at the power supplier.

Charné Mostert, campaign officer on corruption at AfriForum, said the announcement of the proclamation highlighted the fact that there was deep-rooted corruption and maladministration at Eskom.

“This makes it inevitable that Eskom must reveal the details of these contracts. We will continue unabated to demand that these contracts be made completely public so that the public can see the extent of the Eskom crisis.”

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