Including staff and suppliers suspected of fraud and corruption in a deal.
Eskom says it is closing in on several employees accused of breaching procurement processes linked to a diesel procurement and storage contract that was key to keeping the lights on during the power utility’s darkest days.
This follows a probe initiated by Eskom’s Group Investigations and Security function in March last year, after monitoring contract performance during operational emergencies that involved load shedding in early 2025, as well as information received from whistleblowers.
Diesel supply during load shedding
The contracts under investigation relate to the supply of diesel to Eskom’s open cycle gas turbine (OCGT) power stations, which support system reliability during emergencies, particularly at peak demand and periods of high breakdowns.
While it’s been a year since Eskom last implemented load shedding, 2022 to 2024 was a testing time, when load shedding spiked 300% in 2022 and 2023 went on to become the worst year in eight years.
At the time, burning through diesel was part of the power utility’s best bet to prevent a full grid collapse, but at a very high cost.
An interim report has so far identified instances of non-adherence to Eskom processes in both the procurement of services and the management of contracts.
Eskom also uses diesel-fired capacity from two independent power producer (IPP) stations as part of its broader operations, but these IPP arrangements are not included in the current investigation or associated consequence management processes.
Disciplinary proceedings
Following the findings in the interim report, Eskom says it will initiate disciplinary proceedings against several employees in breach of the procurement processes.
“We expect that more employees may be charged once the final report has been issued to Eskom,” Eskom board chair Mteto Nyati said in a statement on Friday.
He says disciplinary action will also be taken against suppliers found to have breached Eskom’s procurement policy and processes.
“We maintain zero tolerance for corruption and any breach of Eskom’s processes. We will seek to recover every rand of financial loss, while relentlessly executing our action plans to address historical misconduct, reinforce governance and embed ethical conduct at every level,” Nyati added.
Eskom has reported the matter to the Directorate for Priority Crime Investigation (Hawks) for further investigation, with the possibility of criminal charges not ruled out.
The final report is expected to be released in June.
This article was republished from Moneyweb. Read the original here.
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