So-called “low-value” contracts at some of SA’s largest power stations gave dozens of Eskom employees at least R180 million in kickbacks, an investigation has revealed.
News24 writes that an ongoing probe into procurement fraud at Eskom has revealed this kickback scheme.
These “informal contracts” – valued at up to R1 million – are subjected to less rigorous oversight and approval processes than formal contracts. This process is meant to facilitate quicker decision-making.
The Special Investigating Unit’s (SIU) investigation has identified 45 vendors at 15 power stations that have paid kickbacks for years. This was reported by the SIU to the Standing Committee on Public Accounts (Scopa) on Wednesday.
The probe involves the South African Revenue Service, Hawks and the Financial Intelligence Centre.
Stages 1 and 2 investigated purchase orders worth a combined R3.5 billion at 15 power stations. These are complete. Stage 3, which is probing another R700 million, is ongoing.
Further, 34 disciplinary referrals have been made: 17 for current Eskom employees and 17 for employees who had resigned before the probe. The SIU has made over 100 referrals to the National Prosecuting Authority, the Asset Forfeiture Unit, and SARS.
So far, 45 suppliers have been blocked from further work at Eskom. They are not yet on the national blacklist.
The purchase orders were often created late at night or in the early morning.
At Kusile, purchase orders worth well over R500 million were created before 07:00 or after 18:00.
Corrupt employees would “throw the javelin” and then resign from Eskom while putting “things in place”. Once they were on the outside, they would then “catch the javelin”.
The vendors are largely big companies who found a mechanism to participate in this small space.
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