{"id":86568,"date":"2015-05-05T16:12:25","date_gmt":"2015-05-05T14:12:25","guid":{"rendered":"http:\/\/businesstech.co.za\/news\/?p=86568"},"modified":"2015-05-05T16:12:25","modified_gmt":"2015-05-05T14:12:25","slug":"eskom-lost-billions-to-electricity-syndicate","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/trending\/86568\/eskom-lost-billions-to-electricity-syndicate\/","title":{"rendered":"Eskom lost billions to electricity syndicate"},"content":{"rendered":"<p>Eskom in Limpopo said its revenue has increased since the arrest of members of a prepaid electricity syndicate, who were allegedly enriching themselves with old vending machines.<\/p>\n<p>The company said it has been losing at least R400 million per year as results of a Credit Dispensing Unit machine stolen by the syndicate six years ago.<\/p>\n<p>Eskom\u2019s provincial spokesperson, Dikgabane Rampedi, told News24 on the sidelines of Wellington Marumo\u2019s trial at Mankweng Magistrate\u2019s court on Tuesday: \u201cWe have managed to reduce the impact since Marumo was arrested and our sale has increased over R37 million a month,\u201d he said.<\/p>\n<p>The court heard that Marumo used phased out machines when selling electricity voucher to customers in Mankweng area.<\/p>\n<p>Credit Dispending Unit machines were phased out in 2009 after Eskom suffered heavy losses from the illegal sale of electricity as the system was vulnerable for exploitation.<\/p>\n<p>However, investigations by police and the Eskom Fraud Unit discovered that nearly 580 vouchers were sold between 2009 and November 2012.<\/p>\n<p>The court heard that the syndicate made a combined illegal profit of R264\u00a0600, when selling units at lower rate to Eskom\u2019s standard rates.<\/p>\n<p>Eskom\u2019s Fraud Examiner, Louie Rossow, earlier in the trial told court that the attack on the system was causing the company serious losses.<\/p>\n<p>Marumo pleaded not guilty to 580 charges, despite overwhelming evidence against him.<\/p>\n<p><strong>Recruiting customers<\/strong><\/p>\n<p>According to police investigations, code discovered on the receipts were fromthree machines that were stolen when Eskom recalled and destroyed CDU machines.<\/p>\n<p>The court heard that a ring leader recruited customers by promising them more units at discounted rates.<\/p>\n<p>In one instance, a customer was able to secure 400 units for R200, something the power utility said was unregulated and unstandardised.<\/p>\n<p>Rampedi appealed to the community not to support or buy discounted electricity, saying: \u201cThere is not a discount for electricity, the price of electricity is regulated. Don\u2019t buy or support discount electricity from dealers.\u201d<\/p>\n<p>Marumo is said to have been the leader of a syndicate operating in Mankweng and surrounding areas.<\/p>\n<p>He was released on R100 000 bail in March last year.<\/p>\n<p>The court was also told that Eskom was unable to stop the machines from operating because the vending machines, unlike new technology, operate offline.<\/p>\n<p>Elainne Adams, Eskom\u2019s information system manager, told the court that Eskom could not stop the machines from operating.<\/p>\n<p>\u201cIt is not possible to stop that machine, it is not linked. The machine will stop issuing vouchers in 2024 if is not retrieved,\u201d she said<\/p>\n<p>The trial was adjourned until July 8, for the State to allow the police fraud analyst to unpack how money was transferred between ring leaders.<\/p>\n<h3 class=\"my-4\">More on Eskom<\/h3>\n<p><a href=\"http:\/\/businesstech.co.za\/news\/government\/86496\/eskom-says-no-r1-5-billion-cost-cutting\/\"><strong>Eskom says no to R1.5 billion cost-cutting<\/strong><\/a><\/p>\n<p><a href=\"http:\/\/businesstech.co.za\/news\/general\/86128\/eskom-dragging-south-africa-down\/\"><strong>Eskom dragging South Africa down<\/strong><\/a><\/p>\n<p><strong><a href=\"http:\/\/businesstech.co.za\/news\/general\/86174\/ten-defaulting-municipalities-safe-from-eskom-power-cuts\/\">Ten defaulting municipalities safe from Eskom power cuts<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Eskom in Limpopo said its revenue has increased since the arrest of members of a prepaid electricity syndicate, who were allegedly enriching themselves with old vending machines.<\/p>\n","protected":false},"author":33,"featured_media":77873,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[25,1164],"class_list":["post-86568","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-trending","tag-active","tag-eskom"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/86568","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/33"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=86568"}],"version-history":[{"count":1,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/86568\/revisions"}],"predecessor-version":[{"id":86572,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/86568\/revisions\/86572"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/77873"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=86568"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=86568"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=86568"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}