The SIU is gunning for former Eskom CEO Andre de Ruyter, telling MPs he should face the music for his “unauthorised” intelligence probe into the affairs of the embattled power utility.
Appearing before parliament’s public finance watchdog body Scopa, SIU head advocate Andy Mothibi, portrayed De Ruyter as a man who ran amok at Eskom, ignoring the board when he commissioned George Fivaz Forensic and Risk company to gather intelligence on Eskom.
Mothibi told MPs that he was seeking advice on what course of action to take against De Ruyter now that he was no longer an Eskom employee. He said De Ruyter’s procurement of the private intelligence company to run an intelligence operation on Eskom without authority from its board amounted to “maladministration”.
He reported that the Fivaz investigation cost R50m that was privately sourced, with the help of Business Leadership South Africa.
Mothibi indicated that the Fivaz report mentioned the names of several politicians, and those would be revealed “at the appropriate time”.
The SIU was also probing Eskom’s R500m security contract with Fidelity, that was entered into three months before De Ruyter’s departure.
The SIU has prepared an interim report to President Cyril Ramaphosa, Mothibi said.
“The commissioning of the report, from a corporate governance perspective, was not authorised by Eskom.
“He went on his own, he did not inform the board. It seems the board chair at time was aware, but there are no official minutes or records of the authorisation of the investigation,” said Mothibi.
Ee will consider the options available, together with the board, and advise accordingly. We are of the view that the GCEO was under obligation to report the allegations and he failed to do so.
— Adv Andy Mothibi, SIU head
The SIU appeared in parliament to brief the committee on the intelligence report commissioned by De Ruyter on Eskom. “The accounting authority, being the Eskom board, did not authorise the investigation,” he told MPs.
Mothibi said this points to a measure of maladministration and “that in our view was unauthorised.
“We could not find why the GCEO would not have reported to law enforcement agencies that the intent was for him to assist with the investigation of the maladministration and corruption, but we are of the view that the manner in which he went about it was not consistent with his office, and without informing the board, the SIU, Hawks, SAPS, SSA and executive authority, this is maladministration.”
On whether the SIU should consider holding the De Ruyter accountable, Mothibi said, the SIU will seek legal advice in this regard.
“Consideration should be given to holding the former CEO to account. It becomes a legal question as he is no longer employed by Eskom, and we will consider the options available, together with the board, and advise accordingly. We are of the view that the GCEO was under obligation to report the allegations and he failed to do so.”
He said the investigating company should have known it could not investigate a state institution without alerting law enforcement agencies. “We will consider the nature of the action to be taken in conjunction with the board and advise accordingly.”
Mothibi said upon receiving the report, Fivaz, Eskom employees and Busisiwe Mavuso from the Business Leadership SA were interviewed.
“We have come to some preliminary findings that the former CEO had no authorisation from the accounting officer or from the entity to undertake this kind of investigation into the affairs of Eskom.”
Mothibi said it appears that De Ruyter “had distrust of the law enforcement agencies” but as a CEO should have raised that matter appropriately. “But he went on and commissioned a parallel investigation to the ones conducted by law enforcement agencies.”
On the scope of the investigation, Mothibi said the extent to which the affairs were probed “was problematic”. The same will apply to BLSA and other Eskom employees who complied with the unauthorised investigation.
He said the SIU and the Hawks are working together on the matter.
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