Suspended sentence for former Eskom contractor Lomas, jail term for co-accused

Former Eskom contractor Michael Lomas and businessperson Hudson Kgomoeswana have been convicted and sentenced after reaching a plea and sentencing agreement with the state on corruption and other charges.

Lomas, who was successfully extradited from the UK in September 2024, was convicted by the Gauteng High Court (Johannesburg) on Thursday on 34 charges of corruption relating to payments made between February 2015 and April 2017 amounting to more than R2.6m from his personal account into a company owned by one of the accused.

“Following considerations on several factors that include the age and health of the accused, his remorse for participating in corrupt acts, the aggravating circumstances of the case, mitigating circumstances of the case, as well as the interests of the complainant, Eskom Holdings, Lomas was sentenced to 15 years’ imprisonment, which will be suspended for a period of five years,” Investigating Directorate Against Corruption spokesperson Henry Mamothame said.

The charges Lomas faced also relate to 24 rental payments for an apartment in Midrand, amounting to more than R396,000, which benefited two former senior Eskom employees. This gratification was aimed at influencing the two to award a contract to a company Lomas was working for, Tubular Construction Projects.

Mamothame said as part of the agreement, Lomas will provide the state with evidence against some of the accused in the main case.

Mamothame said the NPA’s Asset Forfeiture Unit (AFU) has rejected the proposed confiscation of R6m against the value of Lomas’ assets, as it views the amount as not being reflective of the proportions of the money that was lost to the state through his criminal acts.

“Further engagements between AFU and Lomas’ attorneys are under way in an attempt to reach a settlement.”

In the case of Kgomoeswana, he pleaded guilty to one count of corruption, 18 counts of money laundering and 15 counts of contravening the Tax Administration Act.

“The charges relate to payments of over R6m allegedly paid to a former Eskom senior employee as gratification from the Tubular Group of companies, through Babinatlou Business Services, owned by Kgomoeswana.”

Mamothame said Kgomoeswane retained R757,000 for making available his accounts to facilitate corrupt payments.

Kgomoeswana was sentenced to 15 years’ imprisonment on corruption and money laundering charges, of which 10 years were suspended for five years, provided he does not commit similar offences during the suspension period.

In addition, Kgomoeswana was sentenced to five years on the 15 counts of contravening the Tax Administration Act for evading tax. This sentence will run concurrently with the five-year sentence relating to the corruption and money laundering charges, meaning he will serve an effective five-year jail term.

Mamothame said Kgomoeswana consented to the AFU confiscating his assets valued at more than R2.4m.

“He will also provide the state with evidence on his participation in commissioning of the offence.”

Lomas and Kgomoeswana, together with other accused, were facing multiple counts of corruption linked to the R1.4bn that was meant for the upgrade of Eskom’s Kusile power station in Mpumalanga between 2014 and 2017.

Meanwhile, the case against other co-accused, former senior Eskom managers Frans Hlakudi and Abram Masango, is expected back in court for trial.

TimesLIVE