Get more Mail & Guardian
Subscribe or Login

Gigaba, Koko and Singh named in bombshell treasury report on rot at Eskom, Transnet

Treasury has released a more than 600-page bombshell report detailing the extent of rot at Transnet and Eskom over the last six years — and says former Home Affairs Minister Malusi Gigaba compromised the procurement process of controversial new Chinese locomotives.

“Minister Gigaba compromised the procurement process by signing the LSA between Transnet and CSR as a witness,” the report says.

Former Eskom executives also face possible criminal charges over the power utility’s Tegeta. The report found senior officials at the power utility misled Parliament and may have also received kickbacks.

The report — compiled by Fundudzi Forensic Services on behalf of treasury — says former Eskom executives Anoj Singh, Matshela Koko, Suzanne Daniels, Ayanda Nteta and Edwin Mabelane should be investigated by the Hawks for receiving kickbacks in assisting the Guptas to receive a controversial R659-million prepayment to purchase Optimum coal mine.

Gupta-owned Tegeta Exploration and Resources was assisted in buying the coal mine by Eskom using the R659-million pre-payment. The pre-payment by Eskom, which was paid just three days after a late-night special board tender committee (SBTC) resolution to pay it, aided the Guptas’ to purchase the mine. 

Without that 9pm resolution the infamous Saxonwold family, which had been denied loans by banks just hours before, would have missed the deadline to deposit the R 2.1-billion required to conclude the transaction.

“Eskom’s SBTC gave Tegeta preferential treatment in that an urgent SBTC was scheduled and took place at 21:00, with the sole purpose of approving the R659 million prepayment to Tegeta… Eskom and Tegeta officials contravened section 34(1) of the Prevention and Combating of Corrupt Activities Act 7.8.35.25. SBTC members, Koko, Nteta, Daniels, Singh, Mboweni and Mabelane may have received gratification for assisting Tegeta to receive the prepayment from Eskom….Based on the conclusions discussed above, we recommend that this report be provided to the DPCI (Hawks) to institute criminal investigations for possible receipt of gratification…” said Fundudzi in its report.

The forensic company further encouraged that Treasury should request the Hawks to criminally investigate Singh and Koko for “possible criminal conduct” for misleading the parliamentary portfolio committee on public enterprises on the 3.5% discount they claimed to have negotiated with Tegeta on the prepayment.

“We were not provided with any documentation indicating that Singh negotiated the discount on the prepayment of coal. The 3.5% discount was already offered by Tegeta even before

the BTC (board tender committee) sat. We conducted searches on Nteta, Koko and Singh’s documents and emails and could not find any evidence that Singh negotiated the discount on the prepayment of coal or that he carried out the SBTC mandate relating to the said prepayment.

“In his response during the parliamentary portfolio committee on public enterprises, Koko indicated that Eskom negotiated the 3.5% discount. The exact words used were: “A 3.5% discount was negotiated with Tegeta for the 5-month early payment that was agreed.”

It was also discovered during the investigation that the prepayment had been discussed by the executives before the extra-ordinary late night board meeting.

Subscribe to the M&G

Thanks for enjoying the Mail & Guardian, we’re proud of our 36 year history, throughout which we have delivered to readers the most important, unbiased stories in South Africa. Good journalism costs, though, and right from our very first edition we’ve relied on reader subscriptions to protect our independence.

Digital subscribers get access to all of our award-winning journalism, including premium features, as well as exclusive events, newsletters, webinars and the cryptic crossword. Click here to find out how to join them and receive a 40% discount on our annual rate..

Thanduxolo Jika
Thanduxolo Jika

Thanduxolo Jika is an investigative Journalist and Co-Author of We are going to kill each other today:The Marikana Story. The Messiah of Abantu.

Related stories

Advertising

Subscribers only

Seven years’ radio silence for taxpayer-funded Rhythm FM

Almost R50-million of taxpayers’ money has been invested but the station is yet to broadcast a single show

Q&A Sessions: Zanele Mbuyisa — For the love of people-centred...

She’s worked on one of the biggest class-action cases in South Africa and she’s taken on Uber: Zanele Mbuyisa speaks to Athandiwe Saba about advocating for the underrepresented, getting ‘old’ and transformation in the law fraternity

More top stories

Denel money woes clip air force’s wings

A senior officer says the shortage of spares and and ability to service aircraft and vehicles has a negative effect on the SANDF’s operational ability

State fails at-risk children as R55m orphanage stands empty

Boikagong Centre in Mahikeng has been closed for almost two years because it did not meet safety requirements. The discarded children say they want a safe place to learn, but instead endure rape and other violence

Wildlife farming vs Creecy’s panel

The departments of environment and agriculture legislation are at odds over modifying the genes of wild animals

Drugs and alcohol abuse rage in crime stats

Substance abuse has emerged as a reason for the spike in crimes during the first quarter of 2021.
Advertising

press releases

Loading latest Press Releases…
×