State power utility Eskom says it is moving swiftly against employees and suppliers implicated in alleged irregularities linked to a multi-billion-rand diesel procurement and storage contract, with possible criminal charges now on the table.
Image: SA Government News Agency
State-owned power utility Eskom has confirmed that it will institute disciplinary action against several employees found to have breached procurement processes linked to its diesel supply contracts, following allegations of irregularities involving contracts worth an estimated R21 billion.
The development comes after investigative reporting by the amaBhungane Centre for Investigative Journalism, which raised concerns over what it described as “dodgy diesel contracts” linked to Eskom’s emergency fuel procurement system used to support power generation during periods of high demand and breakdowns.
Eskom said an interim forensic investigation had already identified non-compliance with internal procurement and contract management procedures under tender MWP2197GX, prompting immediate consequence management.
“As a result of the findings contained in the interim report, Eskom will commence with disciplinary proceedings against several employees who breached our procurement processes,” the utility said.
Eskom added that further disciplinary cases may follow once the final forensic report is completed in June 2026, indicating that the scope of implicated personnel could widen.
The utility said it had also initiated action against suppliers implicated in procurement breaches, in line with its supplier review processes.
Eskom Board Chairperson Mteto Nyati said the organisation was taking a firm stance against misconduct, stressing that accountability would be enforced without exception.
“We maintain zero tolerance for corruption and any breach of Eskom’s processes,” Nyati said, adding that disciplinary and, where warranted, criminal proceedings would follow.
Eskom Group Chief Executive Dan Marokane said the interim findings highlighted failures to follow established procedures but emphasised that most employees remained committed to the organisation.
“The interim report pointed to a need to hold those employees who did not follow Eskom’s processes accountable; this will be matched by action against specific suppliers, as required,” Marokane said.
Eskom confirmed that the matter has been referred to the Directorate for Priority Crime Investigation (Hawks) under the Prevention and Combating of Corrupt Activities Act, signalling the possibility of criminal charges where evidence supports wrongdoing.
The utility said the investigation forms part of broader efforts to tighten governance in its diesel procurement systems, which are critical for running Open Cycle Gas Turbine stations used during system constraints and emergency generation periods.
While scrutiny intensifies over past procurement practices, Eskom noted that diesel expenditure has dropped significantly in the current financial year, reflecting reduced reliance on emergency generation as grid performance improves.
The final forensic report is expected in mid-June 2026, which Eskom says will determine the full extent of disciplinary and possible legal action.
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