Special investigation unit to review Eskom and Transnet contracts

President Cyril Ramaphosa has gazetted a new proclamation, ordering the Special Investigative Unit to give special attention to Transnet and Eskom contracts linked to state capture.

The order comes over and above the judicial commission of enquiry that has been set up to investigate state capture, as well as the parallel investigation being handled by parliament.

Among other things, the SIU has been ordered to review coal and diesel procurement and transportation at Eskom; wasteful and irregular spending; maladministration and defective performance of contractors.

Similar matters will be investigated at Transnet.

The president also made special mention of the activities around the appointment of McKinsey and Trillian at both SOEs.

The move has been welcomed, with civil action group, Outa, saying that it has been long overdue.

“We welcome this initiative which is long overdue,” said Outa CEO Wayne Duvenage.

“We hope that they engage with various civil action organisations and political parties who have done so much work in exposing and gathering the facts related to many of the cases they will be looking into.”

Outa said that the SIU has sufficient capacity and expertise assigned to these investigations, and can go deep and wide on the many issues they will encounter.

Eskom and Trillian both welcomed the investigations, with both companies saying that internal investigations were also currently underway into the some of the same matters.

Read: Eskom’s massive workforce problem: over-staffed and over-paid

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Special investigation unit to review Eskom and Transnet contracts