Eskom board must explain R400m 'sourcing fee'

Public Enterprises Minister Lynne Brown has demanded an explanation from Eskom’s board for an agreement signed by acting chief executive Sean Maritz to pay a R400m "sourcing fee" to an obscure company registered in the British Virgin Islands.

The deal was initiated by the utility’s suspended chief financial officer‚ Anoj Singh‚ early in 2017 and finalised by Maritz in October‚ despite Eskom’s legal advisers and the utility’s own staff flagging it as a disguise for a kickback that would add no value to Eskom.

"The minister has asked the board for a report on the agreement by close of business (on Friday)‚" her spokesman‚ Colin Cruywagen‚ said. "Should any impropriety have been committed‚ she will take immediate and decisive action."

Business Day reported on Friday morning that Maritz had signed a "fee letter" with Huarong Energy Africa committing the power utility to pay R400m into a Hong Kong bank account of a company called Ideva International Group registered in the British Virgin Islands.

- BusinessLIVE