NEWS

Eskom 'Heavily Redacted' Denton's report reveals 'shocking financial abuses'

Kept under lock and key since then, Eskom has reportedly flip-flopped on promises to make the Denton's report public.

09/02/2017 09:53 SAST | Updated 09/02/2017 09:54 SAST
Siphiwe Sibeko / Reuters
Electricity pylons are seen in front of the cooling towers at the Lethabo Thermal Power Station, an Eskom coal-burning power station near Sasolburg in the northern Free State province, March 2, 2016.

A "heavily redacted" report into the state of Eskom reveals "shocking financial abuses", Fin24 reported on Wednesday night.

News24 reporter, Pieter-Louis Myburgh who received the report after a Paia request (Promotion of Access to Information Act) tweeted that parts of it had been blacked out.

The report was commissioned by Eskom in 2015 and the investigation was done by law firm Dentons. Kept under lock and key since then, Eskom has reportedly flip-flopped on promises to make it public.

It has only been released to specific people, including Myburgh, who submitted Paia requests for it.

News24 reported that some contractors who benefitted from contracts worth R30 billion had "no footprint in the industry" and could have been set up by Eskom employees.

Some invoices were only submitted after Eskom had started paying them, and the report noted that it was possible that one of these companies had been set up just for this contract. The company's name was redacted in the report.

The report also said Eskom's primary energy division ignored the power utility's internal legal team when it came to coal supply agreements. In one instance, a supplier delivered coal without a signed coal supply agreement and another did not have an environmental assessment report.

Meanwhile, Business Day reported that three more Paia requests had been submitted for the report. On Tuesday, Eskom released the report to four people, who had made Paia applications for it, although it had reportedly said the report would be made public.

Business Day said Eskom said the report would be made available "as per request" and would be decided "on a case by case basis".

The paper said the report is believed to be sanitised, and excludes the names of officials implicated in wrongdoing.

Eskom chair, Ben Ngubane said the report had not been released to everyone who attended a media briefing on Tuesday, because the power utility received legal advice that said it could not do so.

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