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Dodgy connections: Eskom has lost over R203bn to corruption since 2018
A lack of maintenance, proper governance, and corruption has left power utility Eskom in critical condition.
Eskom has lost billions to corruption. EPhoto: iStock
As the country battles a costly energy crisis, Eskom has revealed that it has lost over R203-billion to corruption since 2018.
A lack of maintenance, proper governance, and dodgy dealings have left the power utility in critical condition.
Tallying the cost in a recent parliamentary response, Public Enterprises Minister Pravin Gordhan said R203 156 237 had been lost to corruption, fraud and bribery.
Fighting corruption
Since the findings of corruption at Eskom by the State Capture Commission, chaired by Chief Justice Raymond Zondo from 2018 to 2022, Gordhan said his department had worked hard to turn things around.
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“The department formed working groups with the Special Investigating Unit (SIU), state organs and other enforcement agencies to implement proclamations relating to maladministration concerning the affairs of SOCs.
“This initiative resulted in the employment of a civil litigation strategy to recover funds associated with SOC losses sustained during the state capture era and other forms of administrative corruption.”
Here’s how much has been recovered at Eskom
Gordhan said R5.2-billion had been recovered, excluding amounts related to investigations conducted by the SIU.
“Process to recover outstanding amounts by the Asset Forfeiture Unit or in terms of the court order is ongoing,” the minister said.
Among these are:
- A R1.1-billion dispute with SAP, which has seen a R500 million settlement agreement signed and is before court,
- A R1.56-billion settlement with ABB South Africa,
- R150-million of around R207-million from improper contracts awarded to Delloitte,
- R1-billion of R1.7-billion dispute with McKinsey and Company,
- and R595 million from Trillian.
SAA and Transnet also lost billions to corruption
South African Airways has also lost billions since 2019, with Gordhan putting the bill at R23 056 231.17.
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Of this amount, R17 209 114 has been recovered.
Meanwhile, Transnet referred R2.1-billion lost to corruption and fraud to law enforcement agencies for recovery. R1.6-billion has so far been recovered.
