Eskom Kusile Scandal: R450 Million in Unauthorized After-Hours Orders Exposed

A deep dive into the operations at Eskom's Kusile Power Station, undertaken by the Special Investigating Unit (SIU), has unmasked alarming irregularities involving unauthorized after-hours purchase orders totaling more than R450 million. This disturbing revelation came to light during a session of the Standing Committee on Public Accounts, where SIU forensic investigation specialist Viven Govender presented distressing findings.

The probe highlights the actions of an identified staff member at Kusile, who is alleged to have orchestrated a vast majority of these transactions, leading to substantial financial gratification from various suppliers. This individual has been put through rigorous disciplinary measures as part of Eskom's internal crackdown on fraudulent activity.

Govender disclosed that the implicated orders were predominantly placed between 18:00 and midnight, with some actions recorded between midnight and 07:00, showcasing a clear intent to subvert standard operational protocols. These after-hour purchases were not isolated occurrences but reflected a disturbing pattern across the facility, with Kusile's R462 million in irregular orders far outstripping irregular activities at other power stations, such as Duvha, which reported after-hours orders around R35 million.

To contextualize the financial mismanagement, it is essential to look at the burgeoning costs and delays tying back to Kusile's construction. Originally budgeted at R81 billion in 2008, the estimates for Kusile's completion have ballooned to R161.4 billion by 2020, with some experts arguing the costs could be as high as R226 billion. This staggering escalation highlights fundamental flaws not just in financial governance but also in project management and design, where many of Kusile’s structural issues stem from.

Chris Yelland, an energy expert, raised concerns about the inflated and potentially inaccurate cost figures being officially reported, which misrepresent the financial quagmire the project has become. Eskom's response to operational flaws, including significant defects in design particularly around boilers and mills, has necessitated extensive and costly redesign and repair work, in collaboration with MHPSA. Each of Kusile’s six units is slated for shutdown and modifications, each lasting about 75 days, shared between Eskom and MHPSA.

The Kusile controversy not only casts a shadow over Eskom’s operational integrity but also poses serious questions about oversight and the ensuant financial bleed it has inflicted on South Africa's power infrastructure, already grappling with stability and efficiency challenges.