Several Eskom employees have been implicated in a large-scale fraud scheme involving the illegal generation of prepaid electricity vouchers, with billions of rands lost to ghost vending.
According to MyBroadband, the utility confirmed in its latest integrated report that its Online Vending System (OVS), which is used to issue prepaid electricity tokens to Eskom customers and participating municipalities, was compromised. The system was originally implemented to replace offline credit dispensing units (CDUs), which were vulnerable to tampering.
An internal investigation revealed that corrupt Eskom officials assisted syndicates in accessing both systems. Fraudsters were able to bulk-generate electricity tokens and sell them at a fraction of the standard rate. The illicit trade may have contributed to load-shedding by distorting demand and impacting Eskom’s revenue.
Electricity theft, including the use of illegal tokens and bypassed meters, cost Eskom an estimated R23 billion during the previous financial year. The utility’s total debt has exceeded R400 billion, with an after-tax loss of R55 billion reported last year.
Law enforcement agencies, including the Hawks and SAPS, have been working with Eskom to investigate the syndicates behind the fraud. Arrests linked to ghost vending have taken place over the past decade and the National Prosecuting Authority is involved in ongoing efforts to identify key players.
Eskom confirmed that disciplinary action had been taken against several employees. Due to the nature of the investigation, the utility has declined to provide addition details as any further disclosures could affect legal proceedings and the work being done by the relevant authorities.
The case remains active as efforts continue to dismantle the network behind the unauthorised vending operations.
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Picture: Per-Anders Pettersson / Gallo Images
