An internal investigation into alleged corruption in Eskom’s diesel procurement and storage contracts is in its final stages, the power utility confirmed said this week, as civil rights group AfriForum backed a whistleblower claiming hundreds of millions of rand have been lost through irregular deals.
The whistleblower claims that Eskom is in possession of a completed forensic audit compiled by Itsamaya Holdings that presumably made adverse findings against some of the companies who were awarded the contract. The five companies awarded the contract to supply and store diesel for Eskom are Astron Energy, Lanele Group, African Shipping and Forwarding, Nutinox, and Severino Industries.
AfriForum’s Private Prosecution Unit, led by advocate Gerrie Nel, sent a letter to Eskom warning that the forensic report risks being shelved after it was referred to law firm Centurion Legal Group for review.
Nel said the move fits a pattern where inconvenient findings are sidelined by appointing lawyers, which likely amounts to wasteful expenditure. He urged Eskom’s forensics and accounting officers not to repeat delays seen in the Masemola Public Finance Management Act matter.
The whistleblower, whose identity is being protected, alleges serious governance failures including relaxed bid criteria, prepayments to suppliers lacking available capital, and rebate arrangements that earned suppliers millions at Eskom’s expense.
Further allegations include cases where Eskom provided fuel storage facilities to suppliers whilst simultaneously being billed for those same facilities. The whistleblower claims losses could run into hundreds of millions of rand monthly.
Eskom confirmed the investigation on Tuesday but declined to discuss details.
“Eskom can confirm the investigation is now in its final stages of completion and remains subject to internal governance, legal and assurance processes,” the utility said in a statement.
“Given that the matter is still pending, Eskom is not in a position to engage on the details or comment further at this stage. Any updates will be communicated at an appropriate time, in line with applicable legal, governance and regulatory requirements.”
The utility encouraged reporting of alleged unlawful activities through its established whistleblowing mechanisms, including a crime line on 0800 112 722 and WhatsApp on 081 333 3323.
Of the five companies awarded contracts, Nutinox has previously been linked in media reports to Deputy President Paul Mashatile, whilst Lanele Group is reportedly involved in a separate Transnet dispute involving corruption and money laundering allegations. Nutinox also faced a Johannesburg High Court ruling that invalidated a R263 million water tanker tender.
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The diesel contracts probe comes as the Supreme Court of Appeal this month dismissed Eskom’s appeal and ordered the utility to disclose coal and diesel contracts under the Promotion of Access to Information Act, following a legal case brought by AfriForum in 2022.
AfriForum said it would publicise findings and push for investigations and prosecutions if the state fails to act. The organisation warned it will pursue private prosecutions where necessary.
The development is separate from another corruption case in which the Special Investigating Unit obtained a R76.5 million preservation order against businessman Siyabonga Nkosi on 21 April for allegedly overpricing electrical relays at Eskom’s Kusile and Matla power stations. Judge BM Ngoepe granted the order, freezing 17 properties and seven luxury vehicles linked to Nkosi and three trusts.
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