Eskom Electric Company presented an operational update to the Standing Committee on Public Accounts (Scopa), including progress obtained in investigations of employees doing business with the corporation and acts of vandalism that resulted in incidents and load reductions.

Eskom has joined the Special Investigations Unit (SIU) and Priority Crimes Investigation Branch (Hawks) to investigate a number of high-profile cases and ongoing issues with employees over the past few years. .

Through the investigation, SIU has identified hundreds of electricity employees doing business with the unit, creating a major conflict of interest.

Eskom employees are prohibited from having any personal interest or other interest in an Eskom contract, whether as a supplier, consultant or as a director or owner of the business. business or in any other capacity.

This includes transactions with third parties that are indirectly linked to Eskom.

The SIU identified 334 conflicts of interest within the group in which employees were found to have potentially affiliation with different organizations and suppliers doing business with Eskom. In addition, 5,464 employees were identified for not submitting their benefits disclosure forms.

The investigative unit indicated that in some cases the connection between an employee and a contract is not easily identifiable, with family or friends running the business on behalf of the employee.

In some cases, Eskom officials reached out to complete strangers to set up contractors and bank accounts through which to transfer funds.

Eskom suppliers also often pay bribes indirectly – such as paying for tuition or other bills – which makes it difficult to track cash flow, he claims.

Regarding acts of fraud and vandalism of the power system, the SIU said it has observed cases of non-compliant coal being delivered to the group. This was achieved by applying pre-certification processes at coal mines, SIU said, and has successfully passed other checks and balances through the participation of Eskom employees.

” (Staff) ensures that samples for testing are obtained in the absence of Eskom observers and facilitates sample exchange by transporting samples to the laboratory on a trucks are not equipped with the tracking equipment required by the contract,” he said.

The SIU said employees also colluded with the mines, offering contracts with inflated coal prices to meet “transportation costs”. These contracts are between the mine and the carriers who have relationships with Eskom employees – and because the companies are located outside of Eskom, electricity service does not show prices.

Transport costs are high due to sourcing coal from mines far from the station instead of suitable locations nearby.

Coal theft

The unit said there was also collusion between the transporters to mix the poor quality coal of some mines with the good quality coal of other mines. This ensures that the quantity required under the contract will be routed to the power plants.

“Because coal quality is often not tested when coal is delivered to a power plant, it is not possible to identify a source of lower quality coal.”

Eskom says Eskom can only mitigate this problem by installing automatic, real-time combustion testers that link to a specific truck’s test results, as soon as they arrive. coal to and before unloading.

Eskom CEO Andre de Ruyter says the current system has a certified mine-tested coal stockpile, loaded into a truck, sealed, and the vehicle itself equipped tracking device.

However, he said the team found significant tampering of the seals and jammers used to intercept the tracking signal.

“Coal trucks are then taken ‘out of sight’ to sites where good quality coal is exchanged for scrap coal – instead of 18 kilojoules per kilogram which is seven or eight – and that can very negative impact on our factories, he said. CEO

said real-time checks are difficult because the trucks are constantly unloading. However, he said the team is working on new methods, including container samplers, to do a better job.

Claim fraud

The SIU is also investigating cases of corruption or conflicts of interest related to the Medupi and Kusile constructions, with 29 contracts worth Rs 135 billion under review. . The majority of contracts involve Kusile (24 years old) worth R88 billion, where various lawsuits are being prepared and lawsuits against employees have begun.

It also looks at key issues with contractors submitting inflated claims, which are then resolved by Eskom officials with no or no investigation. These claims are often unsubstantiated and Eskom has allowed them to be dismissed, the SIU said.

This is due to Eskom employees manipulating or intentionally blocking the complaints process or even employees working with contractors against Eskom in the process.

Senior Crime

The Hawks – also gives an update on investigations in Eskom.

The group is investigating a number of alleged crimes including coal theft, diesel theft, cable theft, bomb threats, fraud and corruption, vandalism and more.

One of these cases involved nearly 6,000 kg of aluminum stolen from Eskom. The truck driver was arrested and further investigations into the entity involved revealed that stolen infrastructure worth Rs 20 million was identified.

Diesel oil worth Rs 200,000 was stolen from the Kriel power plants, where the transporters colluded with the Eskom weighbridge workers to steal the fuel.

The receiving agent let the carrier go after weighing the diesel, and the fuel was loaded into another truck at a farm down the road. The carrier then returns to the power station, weighs an empty load – incoming and outgoing volumes are recorded, and the receiver confirms the diesel, but it was never delivered.

“Eskom would then pay the diesel bill for the fuel it never received,” Hawks said. “The driver, after selling the diesel engine, will be paid in cash or electronically.”

Several alleged cases of theft and vandalism are still under investigation – or are expected to have been withdrawn to gather more evidence, the group said.