Eskom corruption crackdown

Eskom has cracked down on its employees involved in fraud and corruption, with 183 found guilty and dismissed. 

This is part of Eskom’s broader efforts to impose discipline at its power stations and, beyond dismissing criminal employees, get them to follow standard operating procedures. 

Eskom’s management team revealed this in a recent performance update presented to the Standing Committee on Public Accounts (Scopa) on 9 October. 

The utility has made good progress in turning around its fortunes so far in 2024, with the country going six consecutive months without load-shedding. 

Improvement in its operational performance has also begun to filter through to its financials. Eskom forecasted that it would break even in the current financial year (FY2025) and post a R12 billion profit in the 2026 financial year. 

Eskom recorded a pre-tax loss of around R200 million for the first quarter of its 2025 financial year, which is a significant improvement on its R6.9 billion loss for the same period last year. 

This is largely due to a significant reduction in the use of its open-cycle gas turbines (OCGTs), which are peaking stations intended for short periods of time. 

Reducing the use of its OCGTs has enabled the company to save R10.6 billion in the first few months of the current financial year. 

However, an overlooked factor in Eskom’s dramatic improvement is the apparent disappearance of sabotage of the utility’s infrastructure. 

Eskom said earlier this year that sabotage has not impacted its operational performance in the current financial year, as collaboration with law enforcement agencies has paid off. 

The South African National Defence Force has been deployed to several power stations and key infrastructure since December 2025. Its deployment has been extended to March 2025 and has cost taxpayers R461 million so far. 

Eskom also told Daily Investor that it has improved its own crime-fighting capabilities by enhancing its prevention, monitoring, and detection strategies. 

Another key reason is that Eskom uses original equipment manufacturers to conduct maintenance at its power stations. 

Eskom’s turnaround in recent months has been a direct result of better equipment maintenance, which has reduced the number of breakdowns and prevented units from tripping shortly after returning to service. 

Employees implicated

SIU head Andy MothibiSIU head Andy Mothibi

In its performance update to Scopa, Eskom revealed that 580 employees have been recommended for disciplinary action relating to fraud and corruption. 

Of these, 406 cases have been completed, and 183 employees were found guilty. These employees have been dismissed and are set to be prosecuted. 

Eskom said the one thing most of these cases had in common was that its employees received unauthorised payments from various suppliers. 

This crackdown is only set to intensify as Eskom has established a Project Management Office (PMO) for two years, beginning on 1 July 2024. 

The PMO will support the Group Investigations and Security Function and focus on disciplinary referrals emanating from the Special Investigations Unit (SIU) and other law enforcement agencies. 

The SIU has been investigating fraud and corruption for years, with the unit saying there is clear evidence of collusion between Eskom management and suppliers. 

“Eskom investigations are huge, extending beyond employees to coal contracts and will get even bigger,” SIU spokesperson Kaizer Kganyago previously said. 

The SIU is currently focusing on coal contracts between Eskom and suppliers where sabotage occurs. It includes substandard coal breaking the utility’s machinery and the deliberate destruction of infrastructure, such as conveyor belts. 

Individuals commit sabotage to initiate contracts for repairs and transport coal using trucks.

Following Eskom’s litigation, coal-supply agreements worth R3.7 billion were also declared invalid, and other coal and construction deals worth R10 billion have been set aside following SIU investigations. 

Kganyago said the SIU is investigating the construction of power stations, and private-sector companies are being investigated for supplying inadequate equipment and maintenance.

Shaun Jacobs • 10 October 2024

Eskom has cracked down on its employees involved in fraud and corruption, with 183 found guilty and dismissed. 

This is part of Eskom’s broader efforts to impose discipline at its power stations and, beyond dismissing criminal employees, get them to follow standard operating procedures. 

Eskom’s management team revealed this in a recent performance update presented to the Standing Committee on Public Accounts (Scopa) on 9 October. 

The utility has made good progress in turning around its fortunes so far in 2024, with the country going six consecutive months without load-shedding. 

Improvement in its operational performance has also begun to filter through to its financials. Eskom forecasted that it would break even in the current financial year (FY2025) and post a R12 billion profit in the 2026 financial year. 

Eskom recorded a pre-tax loss of around R200 million for the first quarter of its 2025 financial year, which is a significant improvement on its R6.9 billion loss for the same period last year. 

This is largely due to a significant reduction in the use of its open-cycle gas turbines (OCGTs), which are peaking stations intended for short periods of time. 

Reducing the use of its OCGTs has enabled the company to save R10.6 billion in the first few months of the current financial year. 

However, an overlooked factor in Eskom’s dramatic improvement is the apparent disappearance of sabotage of the utility’s infrastructure. 

Eskom said earlier this year that sabotage has not impacted its operational performance in the current financial year, as collaboration with law enforcement agencies has paid off. 

The South African National Defence Force has been deployed to several power stations and key infrastructure since December 2025. Its deployment has been extended to March 2025 and has cost taxpayers R461 million so far. 

Eskom also told Daily Investor that it has improved its own crime-fighting capabilities by enhancing its prevention, monitoring, and detection strategies. 

Another key reason is that Eskom uses original equipment manufacturers to conduct maintenance at its power stations. 

Eskom’s turnaround in recent months has been a direct result of better equipment maintenance, which has reduced the number of breakdowns and prevented units from tripping shortly after returning to service. 

Employees implicated

SIU head Andy MothibiSIU head Andy Mothibi

In its performance update to Scopa, Eskom revealed that 580 employees have been recommended for disciplinary action relating to fraud and corruption. 

Of these, 406 cases have been completed, and 183 employees were found guilty. These employees have been dismissed and are set to be prosecuted. 

Eskom said the one thing most of these cases had in common was that its employees received unauthorised payments from various suppliers. 

This crackdown is only set to intensify as Eskom has established a Project Management Office (PMO) for two years, beginning on 1 July 2024. 

The PMO will support the Group Investigations and Security Function and focus on disciplinary referrals emanating from the Special Investigations Unit (SIU) and other law enforcement agencies. 

The SIU has been investigating fraud and corruption for years, with the unit saying there is clear evidence of collusion between Eskom management and suppliers. 

“Eskom investigations are huge, extending beyond employees to coal contracts and will get even bigger,” SIU spokesperson Kaizer Kganyago previously said. 

The SIU is currently focusing on coal contracts between Eskom and suppliers where sabotage occurs. It includes substandard coal breaking the utility’s machinery and the deliberate destruction of infrastructure, such as conveyor belts. 

Individuals commit sabotage to initiate contracts for repairs and transport coal using trucks.

Following Eskom’s litigation, coal-supply agreements worth R3.7 billion were also declared invalid, and other coal and construction deals worth R10 billion have been set aside following SIU investigations. 

Kganyago said the SIU is investigating the construction of power stations, and private-sector companies are being investigated for supplying inadequate equipment and maintenance.