NEWS
08/04/2018 11:22 SAST | Updated 08/04/2018 11:22 SAST

Ramaphosa Orders SIU To Investigate Eskom And Transnet Over Losses

Ramaphosa has ordered a Special Investigating Unit (SIU) to look into allegations of corruption at Eskom and Transnet.

President Cyril Ramaphosa has ordered the Special Investigating Unit (SIU) to look into allegations of corruption at Eskom and Transnet following the losses suffered by the companies.

According to Sunday Times, the authorising of the investigations was published in Friday's Government Gazette.

The investigation will once again put the spotlight on two former Eskom executives -- former head of generation Matshela Koko and former chief financial officer Anoj Singh.

Siphiwe Sibeko / Reuters

The issues to be investigated include:

  • The appointment of global consultancy firm McKinsey;
  • Using Gupta-linked companies Trillian and Regiments Capital to render services to the two state-owned companies;
  • Whether the contracts with McKinsey‚ Trillian and Regiments Capital were fair‚ equitable‚ transparent‚ competitive,cost-effective and in compliance with legislation and Treasury policies and practices; and
  • Whether Eskom and Transnet employees‚ officials or agents corruptly or unduly benefited from the contracts‚ and whether fraud was involved.

Siphiwe Sibeko / Reuters

The essence of the probe will determine whether any unauthorised and wasteful expenditure arose from the administration of the projects and whether service providers actually performed or performed defectively.