Skip to main content

Eskom load shedding was part of a simple get-rich-quick scheme

| Economic factors

A damning Eskom report released by professional auditing firm Deloitte has found that the country’s mass blackouts and load shedding was engineered as part of a senior Eskom manager’s plan to get wealthy through irregular contracts.

This is the second such report released in as many weeks The Times reported, with law-firm Dentons’ report, released in early February, also pointing to the possibility of criminal activity related to the emergency procurement of “blackout” coal under the watch of lead procurement negotiator, Koos Jordaan.

“It would appear that Mr Jordaan, and other Eskom employees, circumvented the prescribed Eskom tender policy and procedure by appointing suppliers under the emergency mandate when, in fact, these services did not relate to the emergency period and should have been dealt with under the normal Eskom procurement policies and procedures,” the report said.

“From the interviews conducted, it appears that the 2008 emergency was not managed in the best interest of Eskom and resulted in fruitless and wasteful expenditure being incurred.”

Deloitte noted that Jordaan was given the task of  buying more than R10-billion worth of emergency coal during the 2008 power crisis, much of which he and other Eskom employees distributed to known associates through irregular contracts.

Jordaan resigned shortly after the investigation was launched and is currently the senior executive of a private coal company.

 

Pin It

Related Articles

Budget: Liquor, cigarettes to cost more, no inc...

By: IOL Finance 2024 Budget made provision to raise R15 billion in taxes to alleviate fiscal pressure and support debt stabilisation.

Retail consumers now seeking value as cost of l...

By: IOL COST-of-living pressures muzzled sales volumes for retailer Spar’s Southern African business, including South Africa, although group turnover, which also accounts for its stores in Switzerland, Ireland and England, was up 9.3% for the fiv...

Excessive heat could result in higher food pric...

By: Given Majola - IOL The excessive heat across South Africa currently is a significant concern for the farming sector, according to the Agricultural Business Chamber (Agbiz).

Budget 2024: South Africans should not expect a...

By:Dhivana Rajgopaul - IOL Amid the budget deficit not moving in the right direction, a tax specialist has said South Africans can expect Finance Minister Enoch Godongwana to raise the price of beer and cigarettes, but being an election year, no ...

Retail sales cool in 2023 with consumers still ...

By: Siphelele Dludla - IOL Consumers in South Africa are expected to continue struggling this year under the brunt of stubbornly high inflation, rising cost of borrowing and weak consumer confidence after retail activity plunged in 2023, in spite...