Public Enterprises Minister Pravin Gordhan has revealed that more than R227 billion was lost due to corruption, fraud and bribery at Eskom, South African Airways and Transnet in the past five years.
Gordhan was responding to parliamentary questions from DA MP Farhat Essack, who enquired about the amounts the three state-owned entities lost due to corruption, fraud and bribery in the past five years as well as monies recovered in each case.
In his response, the minister said his department formed working groups with the Special Investigating Unit (SIU), state organs and other enforcement agencies to implement proclamations relating to maladministration concerning the affairs of state-owned companies (SOCs).
“This initiative resulted in the employment of a civil litigation strategy to recover funds associated with SOC losses sustained during the state capture era and other forms of administrative corruption,” he said.
In his response, Gordhan said R203156237 was lost due to corruption at Eskom. “The process to recover outstanding amounts by the Asset Forfeiture Unit or in terms of the court order is ongoing,” he said.
Gordhan also said the SIU has made several successes in relation to recoveries including ABB, Koeberg disputes, Kusile and daily corruption at power stations.
In a matter involving Systems Applications Products (SAP) and Eskom, the claim amount was R1.1 billion and the settlement agreement of R500m has been signed by both parties.
“SIU is in the process of making it a court order,” he said.
Gordhan also said in another matter involving Eskom and Asea Brown Boveri, the claim amount was R1.56 billion and the SIU concluded a settlement agreement in terms of which ABB repaid the amount.
The court order was issued on April 5, 2024, and Eskom and SIU were ordered to publish the order in both English and Afrikaans newspapers within 15 day of the order. In the Deloitte matter, the claim amount was R207m and the parties reached a settlement agreement in March 2020.
“Deloitte agreed to pay an amount of R150 million to Eskom. It was further agreed that investigations had shown no evidence of state capture or corruption on the part of Deloitte, there were technical irregularities in the procurement process, Eskom had benefited from the services rendered by Deloitte, and that Deloitte was entitled to be compensated for the services rendered to Eskom.”
Gordhan added that Eskom had claimed R1.7 billion from McKinsey but a settlement agreement was concluded for R1 billion.
Eskom has claimed R595m from Trillion, but the amount has not yet been recovered due to ongoing liquidation proceedings. Gordhan said SAA has lost a total of R23056231.17 due to corruption, fraud and bribery since 2019.
“Of this amount a total of R17 209 114 has been recovered.”
He added that Transnet has recovered R1.678.8bn from several companies that include McKinsey, SAP, IGS and former employees, Bombardment Transportation, Liebherr and personal protection equipment.
“Transnet investigates all allegations received pertaining to fraud, corruption and bribery. This is encapsulated in our Whistle Blowing policy as well as the Anti-Fraud and Corruption policy.”
He also said Transnet institutes civil recovery proceedings, generally with the SIU, in the high court or Special Tribunal to set aside all irregular contracts associated with fraud, corruption or bribery.
“These contracts are taken on review with the intention to recover on a just and equitable basis.” Gordhan said Transnet also referred all allegations of fraud, corruption and bribery to law enforcement agencies to investigate for criminal prosecution.
“Transnet has referred 15 cases of alleged corruption and 11 cases of alleged fraud to law enforcement agencies for further investigation. Transnet’s actual losses can only be determined once the outcome of the criminal investigation is concluded where the extent of the losses can be quantified.”
He said the total value of matters referred by Transnet to law enforcement for further investigation was R2119116991. “This represents the value of the contracts or transactions where there are allegations of wrongdoing.”
Cape Times