Ramaphosa orders SIU probe into Eskom‚ Transnet

President Cyril Ramaphosa has ordered a Special Investigating Unit (SIU) probe into losses suffered at Eskom and Transnet arising out of allegations of corruption.

The proclamation authorising the investigations was published in Friday’s government gazette‚ and said there was some prospect of the losses being recovered.

The Eskom probe will‚ once again‚ put the spotlight on two former executives involved in the allegations - former head of generation Matshela Koko and former chief financial officer Anoj Singh.

According to the proclamation on Eskom and Transnet‚ the issues to be investigated include the appointment of global consultancy firm McKinsey and using Gupta-linked companies Trillian and Regiment Capital to render services to the two state-owned companies (SOC).

The SIU has been instructed to look into whether the contracts with McKinsey‚ Trillian and Regiment Capital were fair‚ equitable‚ transparent‚ competitive or cost-effective and in compliance with legislation and Treasury policies and practices. It will also have to determine whether Eskom and Transnet employees‚ officials or agents corruptly or unduly benefited from the contracts‚ and whether fraud was involved.

The SIU will also have to ascertain whether employees‚ officials or agents of Eskom and Transnet had any undisclosed or unauthorised interest in contractors‚ suppliers or service providers bidding for work or doing business with Eskom‚ or to whom contracts were awarded‚ and whether they benefited from them.

In addition‚ the probe will look into the procurement of coal and diesel by Eskom as well as coal transportation services to determine whether they were fair‚ equitable‚ transparent or cost-effective and in compliance with legislation and policies. It will consider whether any employees‚ officials or agents of Eskom benefited corruptly or unduly from the transactions.

Maladministration at the utility will also be under the investigators’ microscope as they determine whether any losses or prejudice were suffered by Eskom in relation to the Medupi and Kusile power station projects and the Ingula pumped storage scheme‚ as well as the high-voltage transmission projects linked with them.

The probe will determine whether any unauthorised‚ irregular or fruitless and wasteful expenditure arose from the administration of the projects and whether service providers performed according to their contracts or performed defectively.

The president has also issued a proclamation for an investigation into the affairs of the Department of Correctional Services.

The SIU investigation into the department will look into serious maladministration of the department; improper or unlawful conduct by its employees; unlawful appropriation or expenditure of public money or property; unlawful‚ irregular or unauthorised transactions; intentional or negligent loss of public money; and offences under the Prevention and Combating of Corrupt Activities Act.

- BusinessLIVE

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