Hawks freeze R7.7 million in assets linked to Eskom fraud case

The Hawks have secured a court order freezing nearly R7.7 million in properties and vehicles linked to a procurement fraud scheme that cost Eskom more than R8.5 million.

The restraint order, granted by the High Court on 30 September 2026, covers four properties in Mpumalanga and eight movable assets, including several vehicles. It follows the convictions of five individuals and three companies linked to contracts awarded at Eskom’s Duvha Power Station.

The case centres on allegations that procurement processes were abused between October 2016 and May 2019, with contracts awarded to companies linked to individuals associated with a former Eskom buyer.

How the Eskom fraud scheme worked

According to Hawks spokesperson Lieutenant Colonel Magonseni Nkosi, the investigation found that former Eskom buyer Nozipho Ntuli, 39, allegedly abused her position by awarding tenders to companies linked to people with whom she had personal relationships or associations, without properly addressing potential conflicts of interest.

The contracts awarded to the three companies amounted to R8,525,738, resulting in a financial loss of the same amount to Eskom, Nkosi said.

Phoenix Motion Enterprise, directed by Edward George Sekatane, received contracts worth approximately R5.38 million. Evidence presented during the investigation reportedly indicated that Sekatane continued running the company while serving a prison sentence for an armed robbery conviction.

Hustle Hard Development, directed by Thulani Harries Mahlalela, received contracts worth approximately R2.23 million, while Itireleng Masheleng was awarded contracts valued at about R913,712.

Five people and three companies convicted

The Middelburg Specialised Commercial Crimes Court convicted Ntuli of fraud on 18 August 2026. Sekatane, Mahlalela, Alfred Lebogang Sekatane and the three implicated companies were convicted of money laundering-related offences under the Prevention of Organised Crime Act.

The Hawks’ Secunda Serious Corruption Investigation handled the case alongside the Priority Crime Management Centre, Priority Crime Specialised Investigation and the National Prosecuting Authority.

The convictions exposed how contracts awarded through public procurement processes allegedly benefited companies connected to the accused, according to the Hawks.

Which assets have been frozen?

The restraint order covers assets with a combined value of R7,746,050, including four immovable properties valued at approximately R6.82 million.

The properties are located in Emalahleni and Middelburg, including a property in Aerorand, Middelburg, valued at R5.25 million, as well as properties in Emalahleni and Clewer.

The movable assets include a Mercedes-Benz E63 AMG, Toyota Fortuner, Hyundai i20, Mazda Drifter, Citroën C3, Ford Bantam, Volkswagen Caddy and a motorbike trailer.

The order is intended to preserve assets linked to the case while legal processes continue.

Hawks say asset recovery remains a priority

Mpumalanga Hawks head Major General Nico Gerber said the unit would continue pursuing complex commercial crime investigations and working with the NPA and other law enforcement partners.

Gerber said authorities would continue tracing suspected proceeds of unlawful activity and seeking to preserve assets where the legal requirements were met.

The restraint order marks a further step in the case beyond the criminal convictions, with authorities now seeking to secure assets linked to the alleged fraud and money laundering scheme.

Follow Joburg ETC on Facebook, Twitter, TikTok and Instagram

For more News in Johannesburg, visit joburgetc.com

Source: The Citizen