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Assets Seized in Eskom Corruption Case Topping R400m

Published March 24, 2024
2 months ago

In a significant crackdown on corrupt activities within one of South Africa's key state-owned entities, the Asset Forfeiture Unit (AFU) has conducted sweeping seizures of assets from former employees of Eskom. The former staffers are embroiled in allegations of corruption, which saw the state-owned electricity company incur losses amounting to over R400 million. The corruption took place in the supply and management of Eskom's Kusile power station project.

The recent AFU action in Pretoria saw the final forfeiture orders being obtained against certain individuals who have allegedly engaged in illicit activities that siphoned off Eskom’s financial resources. Among these were former contracts manager Duduzile Moyo and other associates who had connections to the controversial company Tamkelo Business Enterprises.

The law enforcement effort led to the reclamation of luxury vehicles—including a Mercedes Benz Viano and Chevrolet utility vehicle, two farms, and a collection of properties spread across Mpumalanga and Pretoria. Additionally, a lodge and other assets were forcibly taken to be sold off, with proceeds destined to be directed back to Eskom's dwindling coffers.

The forfeiture orders are part of an ongoing and rigorous investigation into the malpractice and maladministration allegations that have hounded Eskom for years. The authorities, including the Hawks and the National Prosecuting Authority, have been piecing together a pattern of corrupt engagement that involved the paying off of Eskom officials in exchange for lucrative tenders. This operation was accomplished through a complex web of transactions meant to camouflage the flow of illicit funds.

Duduzile Moyo, who is at the epicenter of these charges, received monumental sums exceeding R24 million, a clear indication of deep-rooted corruption. She resigned during investigations by the Special Investigating Unit (SIU) in 2018. It was the SIU's report that first unveiled the irregular tender awarded to Tamkelo Business Enterprises for water tanker services—this being just the tip of the iceberg in a broader corrupt network.

The AFU's ongoing commitment to unraveling fraudulent activities and recovering lost funds is crucial, not only to Eskom but for the broader outlook of South Africa's energy sector. The draft Integrated Resource Plan (IRP) of 2023 acknowledges the importance of facing issues surrounding energy security head-on, including a heavy reliance on corruption-free and effectively managed supply chains.

As South African authorities work tirelessly to bring those responsible to justice, the current forfeiture is a testament to the resilience of the country's legal landscape in upholding corporate integrity.

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