Corruption concerns rise over Eskom's controversial security procurement

The African Security Congress (ASC) has ramped up calls for an in depth investigation into a R500 million security contract awarded three years ago by power utility Eskom to Fidelity Security Services.

The ASC maintains there were various irregularities associated with the emergency procurement processes administered by Eskom in making the award.

Ever since doubts emerged about the legitimacy and necessity of the contract that came into effect in 2022, the ASC, a political movement that champions the interests of private security guards, have been outspoken about their objection to the contract award.

And they have made repeated calls for police investigation to be instituted.

Last month (18 August) the ASC's president, Teboho Motloung, in an open letter, yet again expressed their concerns regarding what he labelled as “deliberately stalled” investigations into the security deal, which was awarded without following the standard competitive bidding protocols.

In the letter Motloung named key Eskom officials who were implicated and he demanded immediate action and an independent referral to the National Prosecuting Authority (NPA).

For the ASC, the SAPS' lack of investigative-action stood out like a sore thumb against the findings already made by oversight bodies, including Eskom's internal investigations unit, and Parliament’s Standing Committee on Public Accounts (SCOPA).

Both Eskom and Scopa have flagged the security agreement as not only irregular but also detestable, with the SIU referring three criminal matters to the NPA, including one designated for the SAPS's Organised Crime Unit.

Despite the severity of the allegations and whistleblowers worried about facing reprisals from Eskom, it has not jolted the relevant law enforcement authorities into action.

Attempts to gain a comment from the SAPS' spokesperson Athlenda Mathe were futile.

Acting Police Minister Firoz Cachalia, through his spokesperson Kamogelo Mokgosi, did acknowledge the issue but redirected inquiries to the National Commissioner’s office.

In response to the allegations, Eskom defended its procurement process and asserted that the security measures were legitimate and complied with established procedures and National Treasury's directives for emergency situations.

According to the utility, the contract, valid from July to September 2022, was essential to bolster protection at critical power stations against potential threats from serious security risks that existed.

Fidelity’s spokesperson Wahl Bartmann, the Group's CEO, thwarted the claims and said that the company complied with all Eskom procurement requirements.

“The contract followed Eskom’s prescribed procurement procedures, and all services provided were vetted and approved by Eskom.

"Fidelity maintains full legal compliance and consistently upholds the highest ethical and governance standards,” Bartmann said.

He also rejected suggestions of collusion between the company and Eskom.

Thompson stated that there has been no case opened against Fidelity in relation to the Eskom’s contract .

“We are committed to cooperating fully with any investigation and will provide all necessary factual evidence”.

Bartmann clarified that the actual tender amount was R250 million not the R500 million that was suggested by ASC.

SIU head advocate Andy Mothibi confirmed to Scopa previously that the three-security contracts that were awarded by Eskom, which included Fidelity's award, had to be investigated.

“There was an allegation that Eskom did not follow the correct emergency procedures when concluding security contracts during an emergency.

“Three security contracts were awarded in an emergency and had to be investigated together because they were inter-related.

The investigation into two contracts had been finalised. There were Eskom employees who deliberately created emergencies,” Mothibi told the parliamentary committee.

SIU spokesperson Kaizer Kganyago said they were investigating various cases, in relation to Eskom's procurement process at the moment.

Kganyago continued to say that the SIU was undertaking an investigation into procurement irregularities and would not divulge further details as that would jeopardise the investigations. 

"We have not made any recommendations on our matter as yet, as the investigation is ongoing,” he explained.

DAILY NEWS