Chief Justice Raymond Zondo’s report has found corruption at Eskom worth up to R14.7 billion.
It has been found in a report by Zondo on Friday by Chief Justice Raymond Zondo in a report highlighting the alleged corruption that has taken place at Eskom involving senior officials awarding contracts to McKinsey and Trillion.
The Chief Justice pointed to CEO Matshela Koko and his former financial officer Anoj Singh as having been involved in schemes to get deals for McKinsey.
The report reads:
“It is no surprise that the submission to the Board Tender Committee was prepared by both Mr. Koko and Mr. Anoj Signh, as partners to the negotiations, and Mr. Koko signed off on the Acceptance Letter to Mckinsey. It soon transpired that the black-owned supplier was Regiments, which Mr. Anoj Singh had spoken positively about and recommended to McKinsey.”
According to the report, Koko and Singh also engaged McKinsey and Trillian before all contracts could be finalized.
“Anoj Singh, Mabelane, and Govender are responsible for allowing payment of invoices that should not have been paid; the payments were unlawful due to the flawed contracting process, and involved excessive overpayment to Trillian and McKinsey,” the report read.
The report has also found that a compensation amount of R 1.6 billion had been paid to McKinsey for the termination of the contract.
“The 1.1 billion that McKinsey received between the MSA settlement, and 2015 contract payments were nearly 10 times what it had earned from Eskom in previous years”, the report stated.
Furthermore, it has been found that there was a fraudulent nature in the invoice sent by Trillian to justify their R595 million share of the said settlement.
The report slammed the senior officials at Eskom who benefited from the corrupt relationships with said companies.
It has been recommended by the commission to take legal action against all members of the Eskom board from 2014 who decided to push out three executives, with Eskom being forced to pay the former executives R18 million.
According to Analysts from the wealth management company – Citadel Investment Services, Eskom is said to be facing a tremendous amount of debt caused by keeping up with the South African fiscus and as well as with other SOE’s and there seems to be no way to eliminate this bill.
Government stepped in to provide the failing power station with a R 56 billion bailout for 2020/21 and R 31.7 billion for 2021/22 yet the station still fails to consistently keep the light on.