Home Business and Technology Eskom paid R2 billion for work that was never done

Eskom paid R2 billion for work that was never done


A preliminary forensic report has claimed that over R2 billion was stolen from Eskom through a network of ghost service suppliers and well-placed officials, according to City Press.

The money was allegedly funnelled via fraudulent transactions over the last three years, involving a number of companies invoicing Eskom for work that was never carried out.

The report was compiled by forensic investigators from Seekers Finders Forensic Auditors and Risk Services after a whistle-blower alleged that prominent Eskom employees were colluding with service providers to generate the fraudulent invoices.

At least three Eskom officials have been implicated in the irregularities, in addition to prominent Mpumalanga businessman Jerry Zitha, owner of engineering company Mfondo Trading.


Zitha allegedly got orders from Eskom for which he was supposed to render services through various companies under his control.
While the companies were paid for services which included labour for coal outage plans and refurbishing of injectors, no work had been done in this regard.

The report has been handed over to the Special Investigating Unit (SIU), which has confirmed it is investigating certain issues contained therein.

“The report has been reviewed by the SIU’s assessment committee and the Eskom investigation team. Limited areas that fall within the SIU’s current mandate were identified from the report,” SIU spokesperson Kaizer Kganyago told City Press.
He further claimed that Eskom had previously been paying R28 for a roll of single-ply toilet paper and R56 for a 2L milk bottle.

Tshitango had also failed to pitch up for board subcommittee meetings, and several other meetings with De Ruyter, Eskom’s human resources executives, people management, and the company’s CFO.

Tshitango has accused De Ruyter and Eskom’s legal head of racism by stating they had used “the colour of their skin to undermine his authority”.

Eskom taking charge at municipalities
Eskom’s financial struggles have been further exacerbated by numerous municipalities not paying for the electricity which the utility has supplied to them.

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Source: mybroadband