Revealed: The full Dentons report Eskom doesn't want you to see

15 February 2017 - 19:50 By Tmg Digital

The Financial Mail has released the full Dentons report into irregularities at Eskom‚ in order to allow South Africans to make up their own minds about the goings-on at the parastatal.

Eskom provides electricity directly to 47% of consumers, with the remaining 52% households and businesses getting their power from municipalities.
Eskom provides electricity directly to 47% of consumers, with the remaining 52% households and businesses getting their power from municipalities.
Image: MARIANNE SCHWANKHART

This early version of the report‚ which Eskom has refused to make public‚ was compiled by law firm Dentons and raised concerns about the management of the parastal.

A second report‚ by auditing firm Deloitte raised concerns about Eskom spending R10 billion on emergency coal purchases in 2008 through "irregular" contracts.

  • Eskom blackouts 'were just a rip-off'The Eskom manager given the job of buying more than R10-billion of emergency coal during the 2008 power crisis negotiated several "irregular" contracts - including one with a friend - and resigned shortly after an investigation was launched. 

The contracts were negotiated during the blackout period which crippled the country‚ wreaking havoc on homes and businesses.

It also drew attention to a contract awarded to Isambane‚ a company owned by Koos Reinecke who is a personal friend of former Eskom procurement negotiator Koos Jordaan.

  • Eskom boss 'faked' mining right claimEmbattled Eskom chairman Dr Ben Ngubane is accused of using "poorly fabricated" documents to lay claim to lucrative sand and stone mining rights in order to shield them from creditors of a liquidated company he owns. 

In releasing the Dentons report‚ FM deputy editor Sikonathi Mantshantsha questioned Eskom’s decision to only release "a heavily redacted version" of the report for which it paid R20 million.

"Eskom has chosen not to provide this sort of transparency‚ but we believe it is fundamental for the South African public to judge for itself the evidence detailing the near-meltdown of the electricity parastatal‚" Mantshantsha said.

  • Eskom probes possible ‘widespread’ employee-supplier collusionInvestigations are under way to establish whether Eskom staff colluded with suppliers to inflate their agreed rates with the parastatal. 

The early version of the Dentons report published by the Financial Mail finds:

  • Eskom wasted around R200 million over two years by failing to negotiate discounts with diesel suppliers. It also paid suppliers without receiving proper invoices.
  • Eskom failed to comply with the Public Finance Management Act
  • Senior executives selected suppliers they wished to negotiate with while other more capable companies were not considered.

The full report can be viewed online at the Financial Mail,

- TMG Digital/BusinessLIVE