Electricity Minister Kgosientsho Ramokgopa says crime, corruption and sabotage play a major role in the challenges that Eskom faces, adding that crime syndicates with alleged links to the so-called construction mafia in KwaZulu-Natal have infiltrated the power utility’s procurement department.
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The Daily Investor reports that Calvin Rafadi, a forensic investigator, revealed that Eskom managers and employees had been party to sabotage at power stations for several years and that extensive evidence shows Eskom staff involved in sabotage. Some of this evidence include WhatsApp messages, which police already have.
The evidence also reveals that contractors and procurement companies bribe Eskom employees to damage equipment in an effort to give them more business. Rafadi says several Eskom procurement partners and vendors are linked to crime syndicates due to the nature of their operations. As most of these vendors are not well-funded, they don’t have the financial means to procure the parts or equipment that Eskom needs.
Rafadi says they will then approach anyone who might be able to help them, including crime syndicates. The profits they make from Eskom procurement contracts are then shared with those who funded them. ‘Once they are seen communicating with crime syndicates or the construction mafia, it looks like they are linked with the underworld.’
Some of the problems that Eskom experiences include theft of coal and diesel, damage to plants in return for maintenance contracts, and the delivery of wrong equipment. This modus operandi has caused significant delays in getting the necessary parts whenever a plant breaks down.
Ramokgopa says the slow procurement via middlemen of specific components reduces the power utility’s output by 2 800MW on average. In most cases, he adds, this is the reason why units take longer to return to service than is initially estimated. Referring to these incidents as ‘outage slips’, he says managing the supply and demand balance becomes difficult due to the unpredictability of return-to-service outcomes.
In an effort to mitigate these scenarios, Ramokgopa has urged for procurement processes to be streamlined by removing the middlemen.
As per the Daily Investor, former Eskom CEO Andre de Ruyter warned that crime at the organisation is highly organised. ‘We know of at least four organised crime cartels operating in Mpumalanga operating in Eskom who steal at least R1 billion per month.’
According to De Ruyter, the four criminal cartels are sophisticated and well-organised, and they even use language associated with the Mafia, such as captain and soldier ranks. ‘They have a hit squad of between sixty and seventy highly trained and well-armed people. People get assassinated in Mpumalanga.’
Rhulani Mathebula, Eskom’s generation executive, reiterates that the utility’s largest issue is fraud and corruption. ‘Fraud and corruption are the biggest enemies of progress at Eskom. It is the most important issue to fix Eskom to get the maintenance program back on track,’ he says, adding that the impact of fraud and corruption is felt throughout the company, undermining efforts by engineers and other staff.
More recently, a high-ranking executive was accused of planning several incidents of sabotage at power stations.
The City Press reports that police were allegedly preparing to apprehend the senior executive, and that law enforcement agencies were actively searching for the person. As reported, the individual allegedly recruited engineers to aid in acts of sabotage in exchange for incentives. The City Press also reported that discussions among government ministers in the security cluster were underway to address the allegations.
In a statement released on 5 June, Eskom addressed City Press, stating that the publication did not allow it the opportunity to respond. ‘Eskom was never approached by City Press to comment on any of its executives allegedly implicated in sabotage incidents. However, we can confirm that City Press did approach Eskom on some allegations related to the awarding of a security contract, the involvement of an executive with a fuel supplier and on the statement made by the Minister of Police during his appearance at the Standing Committee on Public Accounts.
‘Eskom responded to questions from the City Press in writing on 20 May 2023 to the best of its ability and knowledge. We, however, noted that City Press used Eskom’s response of 20 May 2023 as a comment to the alleged sabotage.
‘Eskom takes these sabotage allegations seriously and will allow the law to take its course. Eskom is committed to rooting out fraud, corruption and sabotage within its ranks and will fully cooperate with law enforcement to ensure the most effective and coordinated responses to any crime related to Eskom’s operations.’
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