Andre de Ruyter corruption allegations investigated

Eskom appointed an independent legal firm to investigate allegations of corruption and other criminal activities at the power utility by former CEO Andre de Ruyter.

Eskom revealed this in its integrated report for the year ended 31 March 2024, which it published last month.

The investigation followed explosive allegations from De Ruyter in interviews and in his book Truth to Power: My Three Years Inside Eskom.

De Ruyter tells the behind-the-scenes story of launching a private investigation that exposed criminal cartels feeding off Eskom.

While fighting corruption, he dealt with political interference, unfounded accusations of racism, wildcat strikes, sabotage, and a poisoning attempt.

De Ruyter discussed his concerns with the late Public Enterprises Minister Pravin Gordhan, who said he should gather more information.

The former CEO subsequently launched a private investigation and employed George Fivaz Forensic and Risk to do the 18-month investigation for R50 million.

The investigation highlighted two high-ranking politicians, whom De Ruyter did not mention by name in his book.

However, media reports speculated that they are former deputy president David Mabuza and Minerals and Energy Minister Gwede Mantashe.

De Ruyter also revealed that he was warned about a plot to destabilise Eskom in January, which would plunge the country into stage 6 load-shedding.

The plan, which involved numerous Eskom employees, was to worsen load-shedding and hurt President Cyril Ramaphosa.

He said no item was too small to serve as a conduit for the looting at Eskom. The looting ranged from Eskom paying R26 for a R5 single-ply roll of toilet paper to ordering a mop for R238,000.

It goes much further. From 2012 to 2016, a company overcharged Eskom for fuel oil by an eye-popping R1.2 billion.

Eskom paid R400,000 for bearings worth R110,000. It was billed R370,000 for a compressor refurbishment, which should have cost R40,000.

In one case, Eskom even paid R80,000 for a pair of knee guards that cost R320 at Builders Warehouse.

Eskom launched an independent investigation into De Ruyter’s allegations

In its latest annual report, Eskom revealed that it appointed an independent legal firm to obtain the private intelligence dossiers resulting from De Ruyter’s investigation.

Eskom said it did not have access to the information gathered through the investigation De Ruyter commissioned.

The investigation was also aimed at assisting the Eskom Board in addressing matters arising from allegations made in the dossiers and De Ruyter’s book.

“Despite the lack of evidence presented in the dossiers, the legal firm is consolidating the findings to aid in identifying matters for further investigation,” Eskom said.

The legal team also compared them to matters that were already subject to active investigations to optimise remediation efforts.

“We are cooperating with all external investigations and inquiries related to these matters,” Eskom said.

In addition to the independent investigation, Eskom has also conducted numerous other forensic investigations into crime at the company. Over the last financial year:

• 7,132 incidents were registered through reporting channels for assessment on the forensic case management system.

• 380 cumulative cases were under investigation at year-end, relating to current and prior years.

• 195 new cases were registered for forensic investigation.

• 120 forensic investigations were concluded.

“Regrettably, our forensic investigations have revealed themes similar to those of previous years,” Eskom said.

This includes procurement and recruitment irregularities, failure to declare conflicts of interest and other corrupt and fraudulent activities.

“Noncompliance with Eskom’s well-documented policies and procedures, as well as lack of management supervision and monitoring, remain a concern,” it said.

Over the last year, 167 employees were recommended for disciplinary action and 30 suppliers were recommended for review.

330 cumulative cases of fraud and corruption were registered with the South African Police Service (SAPS) at year-end.