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The Special Investigating Unit (SIU) will probe allegations of corruption and maladministration in nine Eskom contracts following a proclamation signed by President Cyril Ramaphosa.
The SIU has announced its intention to investigate the following contracts:
- Coal Procurement: Contracts with Tegeta Exploration and Resources (Pty) Limited for coal supplied by Optimum Coal Mine (Pty) Limited and the Brakfontein Colliery Mine.
- Information Technology Services: Contracts under a master services agreement with T Systems International GmbH, and software licence and support agreements with SAP South Africa (Pty) Limited.
- Capital Scrubbing Services: Task Order SM008 related to coal services procurement.
- Security Services: Procurement of coal security services from Combined Private Investigations (Pty) Limited.
- Forensic Investigation Services: Procurement from Kapditwala Incorporated, trading as Dentons South Africa.
- IT Services: Procurement of services from Cutting Edge Commerce (Pty) Limited (formerly Leonardo Business Consulting).
- Pre-payments for Coal: Investigations into the serious maladministration regarding a pre-payment of approximately R1.68 billion by Eskom for coal from Optimum Coal Mine to Hendrina Power Station, later changed to a guarantee.
- Pre-payments to Tegeta: Investigations into maladministration concerning a pre-payment of approximately R659 million to Tegeta Exploration and Resources (Pty) Limited.
In addition to these specific contracts, the SIU will also investigate any unauthorised, irregular, fruitless, or wasteful expenditure incurred by Eskom or the State, including any unlawful or improper conduct by Eskom officials, employees, suppliers, service providers, or any other involved parties.
The investigation will cover incidents that occurred between 1 March 2006 and 30 August 2024, as well as any related activities before and after these dates that are relevant to the matters under investigation or involve the same individuals, entities, or contracts.
Meanwhile, the SIU has also received authorisation to amend the scope of its investigation into the Department of Rural Development and Land Reform, following findings that additional areas require further investigation.
The amendment authorises the SIU to investigate the acquisition of the following by the department or its beneficiaries:
- The Bekendvlei, Nirwanda, Wonderhoek, Mont Piquet, Appelkloof, and Rietvlei farms.
- Mike’s Chicken (Pty) Limited, along with immovable assets and animals for Project Harmonie, Project Uitkyk, and Project Dipalemo.
- Shares in Bambanani Fruits BEE (Pty) Limited, concerning the department’s Proactive Land Acquisition Strategy or the Land Redistribution for Agricultural Development Policy, and the identification, selection, and appointment of strategic partners and beneficiaries.
The SIU will also examine any unauthorised, irregular, fruitless, or wasteful expenditure incurred by the department or the State, and investigate any unlawful, improper, or corrupt conduct by department officials, employees, suppliers, service providers, or any other involved parties. Beyond investigating maladministration, corruption, and fraud, the SIU aims to identify systemic failures and recommend measures to prevent future losses.
In line with the Special Investigating Units and Special Tribunals Act 74 of 1996 (SIU Act), the SIU will refer any evidence of criminal conduct uncovered during its investigation to the National Prosecuting Authority (NPA) for further action.
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