Eskom targets recovery of funds in diesel contract scandal – Flapraze.buzz

Eskom targets recovery of funds in diesel contract scandal

Zuko Komisa

Image | @Eskom_SA /X
  • Eskom has launched disciplinary proceedings against employees and suppliers following an interim forensic report into diesel procurement irregularities.
  • The utility has reported the findings to the Directorate for Priority Crime Investigation (the Hawks), with criminal charges under PRECCA pending.
  • In response to oversight gaps, Eskom has reinstated mandatory proactive assurance and probity reviews for all high-value tenders.

Eskom has initiated “consequence management” against staff and contractors implicated in procurement non-compliance.

The interim investigation, sparked by 2025’s operational emergencies and assisted by whistleblowers, uncovered systemic failures in the management of tender MWP2197GX.

Beyond internal sanctions, the matter has been formally referred to the Hawks under Section 34(4) of the Prevention and Combating of Corrupt Activities Act (PRECCA).

In a significant policy reversal, the utility has reinstated full proactive assurance and probity reviews for major tenders.

This decision overturns a 2022 move that limited oversight to “cost-effective” reviews a gap Eskom admits weakened procurement integrity. These strengthened controls will now be applied to all major transactions, including retrospective audits where necessary.

The investigation focuses specifically on diesel used for Open Cycle Gas Turbine (OCGT) stations during grid stress. While historical expenditure peaked at R33 billion in FY2023, current spending has been drastically reduced to roughly R469.24 million year-to-date. Eskom has vowed to recover financial losses while maintaining a zero-tolerance stance on corruption.

A final forensic report is expected by mid-June 2026. Eskom continues to urge the public and employees to report further evidence of wrongdoing through its established whistleblowing channels as it seeks to purge systemic malpractice from its supply chain.

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