Eskom paid R50,000 for relays worth R180 – SIU freezes properties and luxury cars over inflated purchases
The Special Investigating Unit (SIU) has successfully secured a court order to freeze assets worth R76.5 million associated with businessman Siyabonga Moses Goodwill Nkosi and his network of trusts.
The order includes the preservation of seven luxury cars and 17 immovable properties, valued at R76.5 million.
This action represents a crucial development in the ongoing efforts to recover funds lost due to mismanagement within state-owned entities.
The preservation order, granted by the Special Tribunal, encompasses 17 immovable properties and 7 luxury vehicles.
It acts as a safeguard, preventing the sale, transfer, or concealment of these valuable assets while the SIU conducts a thorough investigation.
The SIU’s investigation revealed significant procurement irregularities at Eskom’s Kusile and Matla power stations between 2021 and 2023.
This has raised serious concerns about internal controls and oversight at these vital infrastructure sites during that period.
According to SIU spokesperson Selby Makgotho, officials allegedly approved inflated purchase orders for equipment crucial to the power stations’ operations.
“Instead of delivering reliable service, Nkosi’s companies delivered invoices. Eskom officials signed off on contracts that priced relays at R50,000 each, when the market price was between R180 and R450,” said the SIU.
“This manipulation resulted in a direct financial loss of R73.6 million to Eskom.”
The SIU said that Eskom officials also split purchase orders to keep transactions below the R1 million threshold, abusing the informal tendering system and bypassing formal procurement processes.
By deliberately inflating prices, those responsible diverted millions from state funds intended to ensure the stability of power generation.
It added that they uploaded false part numbers to ensure only colluding vendors could bid on the contracts, resulting in inflated costs for equipment that wasn’t needed and remained unused for years.
“Nkosi is cited both personally and as trustee of the Nkosi Royal Trust, Sibongukukhanya Trust, and Siyabonga Kankosi Trust,” said the SIU.
“These entities became conduits for laundering Eskom’s procurement money into prime properties in top suburbs, estates and land in Gauteng, KwaZulu‑Natal, and Mpumalanga, and into a garage of luxury cars such as Lamborghinis, Porsche Cayennes, and a Panamera.”
The SIU said this preservation order prompts it to approach the Special Tribunal to review and nullify these contracts, with 60 days to initiate proceedings.
According to the Special Investigating Units and Special Tribunals Act 74 of 1996 (SIU Act), the SIU will forward any evidence of criminal conduct uncovered during its investigation to the National Prosecuting Authority (NPA) for further action.
The SIU is authorised to start civil proceedings in the High Court or a Special Tribunal under its name.
This is done to address any wrongdoing identified during its investigations and to recover financial losses incurred by the State, including funds paid for services that were not provided.
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