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Eskom Cancels R11 Billion Deals in South Africa Crackdown

Published

10 months ago

July 19, 2023

Eskom cancelled 11bn deals in coal-supply agreements and construction contracts, as part of the government’s crackdown on crime within the organization, according to President Cyril Ramaphosa.

In addition to the cancellations, Eskom has successfully litigated against coal-supply agreements worth R3.7 billion and has set aside other coal and construction deals worth R10 billion, Ramaphosa revealed in response to a question posed by an opposition lawmaker in parliament, as per Engineering News.

Ramaphosa highlighted an operational task team is conducting the ongoing investigations. The team is investigating allegations of sabotage, fraud, corruption, and the theft of Eskom’s infrastructure. The scope of the investigation encompasses areas such as maladministration and non-performance of Eskom suppliers between 2010 and 2022.

Also read: Sabotage at Eskom Under Investigation

To address the challenges faced by Eskom, including power cuts that have severely impacted South Africa, Electricity Minister Kgosientsho Ramokgopa announced plans in April to combat criminality and reduce infrastructure sabotage within the utility. Former Eskom CEO Andre de Ruyter estimated that corruption resulted in approximately R1 billion being stolen from Eskom each month.

Ramaphosa also revealed that Eskom is pursuing claims totalling R4.8 billion against suppliers and former directors. Furthermore, the utility is recovering R2 billion that was unlawfully paid to service providers. As part of the efforts to combat corruption, a database has been created, including the names of at least 25 former senior Eskom executives dismissed due to their involvement in corrupt activities.

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