Eskom has cancelled coal supply agreements and construction contracts valued at R11bn as authorities crack down on crime at the state-owned utility, President Cyril Ramaphosa says.
Litigation by Eskom has also had coal supply agreements worth R3.7bn declared invalid, and other coal and construction deals worth R10bn have been set aside, Ramaphosa said in response to a question submitted by an opposition lawmaker in parliament.
“There is an operational task team conducting investigations into alleged sabotage, fraud, corruption and the theft of Eskom’s infrastructure,” he said.
The scope of the investigation covers areas including maladministration and non-performance of Eskom suppliers between 2010 and 2022.
In April electricity minister Kgosientsho Ramokgopa announced plans, to be implemented over the next six months, to limit power cuts that have crippled the country, including addressing criminality and reducing infrastructure sabotage at Eskom.
Former Eskom CEO André de Ruyter previously estimated the amount being stolen from the power utility at R1bn a month due to corruption.
Ramaphosa also said:
- Eskom is pursuing R4.8bn of claims against suppliers and former directors;
- the utility is recovering R2bn unlawfully paid by Eskom to service providers; and
- at least 25 former senior Eskom executives have been included in a database of individuals dismissed for their involvement in corruption.
More stories like this are available on bloomberg.com
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.