SIU tells how staff co-operated with managers to steal R1bn from Eskom

The Special Investigating Unit (SIU) says it has uncovered a scheme in which Eskom employees manipulated procurement processes to steal more than R1bn, which was spilt into smaller contracts to avoid stricter oversight.

Briefing the standing committee on public accounts (Scopa) on Wednesday, SIU head Andy Mothibi explained that employees conducted transactions after hours to avoid detection.

“Some of them were done after hours — not because they were committed to ensuring the work was done but as part of the modus operandi,” Mothibi said.

The investigation found that 334 employees had financial ties to Eskom vendors, while 5,464 employees failed to declare conflicts of interest.

The scheme extended to family members and networks of entities used to launder stolen funds and senior officials deliberately failed to defend Eskom in dispute resolution cases, allowing fraudulent claims to be paid out in exchange for kickbacks, Mothibi revealed.

“Executives and senior members did not defend Eskom effectively because they were part of the scheme,” Mothibi said.

He said employees also abused emergency procurement procedures. 

“In one case, employees planned to declare an emergency seven days in advance, and I'm sure evidence gathered by the team supports that. So, this really goes to demonstrate that the employees in that company were really looking at various areas of vulnerability and the extent to which they could maximise on siphoning money out,” he said.

Mothibi said 194 disciplinary referrals were made to Eskom, while 14 cases were referred to the National Prosecuting Authority (NPA). According to Mothibi, so far three employees have been arrested, including one who was found guilty of seven counts of corruption and two counts of fraud. 

He said there was an issue of employees resigning before action could be taken against them.

“While we try our best to get information when employees resign, we depend on state institutions to inform us. This requires further attention from a process perspective. Those who resign before disciplinary action, if evidence points to criminal actions, are referred to the NPA,” he said.

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