Former Eskom managers arrested in R745m fraud probe at Kusile power plant

Two former Eskom executives have been arrested by the police's elite investigating unit, the Hawks, and the National Prosecuting Authority's investigating directorate. 

The Hawks on Thursday confirmed that the two former Eskom managers, as well as two business directors and representatives of seven companies have been charged in regards to R745m worth of corruption and fraud into the construction of the Kusile power station near eMalahleni in Mpumalanga.

The arrests were carried out in Mpumalanga, Limpopo and Gauteng.

The incident related to a June 2015 fraudulent contract which was submitted by the Kusile project management team to Eskom’s procurement committee. They had sought to negotiate and conclude the contract with one of the seven companies.

“The contract was approved on 2015 for R745 million to build two Air Cooled Condensers (ACC) units at Kusile power station. It is alleged that from February 2015 to July 2017, the appointed companies, other related entities and individuals shared approximately R30 million amongst themselves,” said Brigadier Hangwani Mulaudzi in a statement.

“Investigations began when suspicions were raised into the construction of two large projects at Medupi and Kusile power stations. This revealed that there was apparent gross manipulation of contractual agreements between contractors, Eskom employees and third parties at Kusile power station,” Mulaudzi added.

Those arrested are due to appear in the Johannesburg Regional Court on Thursday.

Several former Eskom executives have been arrested by the police's elite investigating unit, the Hawks, and the National Prosecuting Authority's investigating directorate. 

Hawks spokesperson Hangwani Mulaudzi confirmed the arrests, but said details would only be provided at a later stage. 

Television news channel eNCA reported on Thursday morning that the arrests were in relation to fraud and corruption amounting to R745m at the broke state power producer. 

More than 10 accused are expected to appear in the Johannesburg Magistrate's Court later on Thursday.

This is a developing story

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