Eskom cancels R11 billion of contracts amid crime crackdown

Eskom cancelled coal-supply agreements and construction contracts valued at R11 billion as the South African authorities crack down on crime at the state-owned utility, President Cyril Ramaphosa said.

Litigation by Eskom has also had coal-supply agreements worth R3.7 billion declared invalid, and other coal and construction deals worth R10 billion have been set aside, Ramaphosa said in response to a question submitted by an opposition lawmaker in parliament.

“There is currently an operational task team that is conducting investigations into allegations of alleged sabotage, fraud, corruption and the theft of Eskom’s infrastructure,” he said.

The scope of the investigation covers areas including maladministration and non-performance of Eskom suppliers between 2010 and 2022.

Electricity Minister Kgosientsho Ramokgopa in April announced plans to be implemented over the next six months to limit power cuts that have crippled South Africa — including addressing criminality and reducing infrastructure sabotage at Eskom.

Andre de Ruyter, the former chief executive officer of Eskom, previously estimated the amount that’s being stolen from Eskom at 1 billion rand a month to corruption.

Ramaphosa also said:

• Eskom is pursuing R4.8 billion of claims against suppliers and former directors
• The utility is recovering R2 billion unlawfully paid by Eskom to service providers
• At least 25 former senior Eskom executives have been included in a database of individuals dismissed for their involvement in corruption.