20 December 2019
The Federation of Unions of South Africa (FEDUSA) has welcomed the arrest of four Eskom senior managers on allegations of fraud, corruption and money laundering related to construction contracts at the state power utility’s Kusile power station in Mpumalanga.
According to a statement by the National Prosecuting Authority and the Hawks these individuals submitted a request to Eskom’s Procurement Committee for authority to negotiate and conclude a contract with one of the construction companies to build two air cooled condensers at the power station at a cost of R745 million which was eventually approved. However the NPA further alleges that these managers manipulated the contracts and creamed off R30 million which they shared amongst themselves.
Considered as a step in the right direction, this form of decisive action is long overdue and totally embraced by FEDUSA, in the national effort of bringing to book all those individuals suspected of involvement in state capture in the light of incriminating revelations flowing out of Deputy Chief Justice Zondo’s Commission of Inquiry. Moreover, FEDUSA calls for further demonstrable action, by ensuring that the full amount is recovered from these disgraced individuals.
“The story of the disappointing failure of the new built power stations at Kusile and Medupi is slowly but at last coming out. A thorough review of what really happened needs to be investigated urgently in the context of the recent unprecedented stage six load shedding and the systemic risk to the economy that Eskom constitutes,” said FEDUSA Acting General Secretary Riefdah Ajam.
“The net should be extended to include all managers who worked on these two critical national projects and those found to have benefited unduly, should be prosecuted without any delay”. Justice must be served, as the grave damages suffered by South African businesses, workers and households remains unwarrantable. The Federation will continue to promote its calls for a culture of accountability and good governance to ensure that the rule of law is restored, with punitive action applied without fear or favour.
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