At least 17 properties and seven luxury cars belonging to businessman Siyabonga Nkosi have been frozen.
This after he was allegedly involved in defrauding Eskom of R76.5m by charging the entity R50,000 for relays with a market price of between R180 and R450 each.
The Special Investigating Unit (SIU) uncovered how Eskom officials at Kusile and Matla power stations allegedly turned procurement processes into a “jackpot” which benefited Nkosi’s company.
SIU spokesperson Selby Makgotho said that between 2021 and 2023, officials approved inflated and irregular purchase orders for relay equipment critical to keeping power stations operational.
“Instead of delivering reliable service, Nkosi’s companies delivered invoices. Eskom officials signed off on contracts that priced relays at R50,000 each, when the market price was between R180 and R450,” said Makgotho.
“This manipulation resulted in a direct financial loss of R73.6m to Eskom,” he added.
Makgotho further revealed how procurement processes were deliberately bypassed.
“Eskom officials split purchase orders to keep transactions below the R1m threshold, abusing the informal tendering system and bypassing formal procurement processes. False part numbers were uploaded to ensure only colluding vendors could bid,” he said.
Makgotho said costs were inflated for equipment that was never needed and is still unused in stock years later.
The preservation order paves the way for the SIU to approach the Special Tribunal to review and set aside the irregular contracts.
“The order prevents the assets from being sold, transferred or hidden while the SIU seeks to recover public funds,” said Makgotho.
It also allows the unit to institute proceedings within 60 days from the date of the order.
Nkosi is cited both in his personal capacity and as a trustee of the Nkosi Royal Trust, Sibongukukhanya Trust and Siyabonga Kankosi Trust.
“These entities became conduits for laundering Eskom’s procurement money into prime properties and luxury vehicles,” Makgotho said.
According to the SIU, the funds were channelled into properties in Gauteng, KwaZulu-Natal and Mpumalanga, as well as high-end vehicles including Lamborghinis and Porsche models such as Cayennes and a Panamera.
Sowetan
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