Eskom said it had moved to accelerate its consequence management framework by issuing an Invitation to Tender (ITT) and Request for Proposal (RFP) for a forensic investigations backlog project.
Image: Dean Hutton | File
STATE-OWNED power utility Eskom is advancing critical governance initiatives to address both internal forensic backlogs and the escalating municipal debt crisis, according to separate statements issued this week.
Eskom said it had moved to accelerate its consequence management framework by issuing an Invitation to Tender (ITT) and Request for Proposal (RFP) for a forensic investigations backlog project, with commencement scheduled for September 1.
According to the statement by the state-owned entity (SOE): “Eskom’s forensic investigation function is a critical component of the organisation’s governance, assurance, and consequence management framework.
“It plays a central role in safeguarding organisational integrity, strengthening accountability, and sustaining public, stakeholder, and shareholder confidence.”
The power utility operates on a co-sourced model for its forensic investigations. As stated: “Eskom operates on a co-sourced model in that all reported allegations are either investigated internally or by the appointed external service providers.”
However, the accumulation of historical cases has created significant challenges. The statement noted that: “Over the past years, the accumulation of legacy forensic matters has increased the volume of outstanding cases, constraining the organisation’s ability to conclude investigations and disciplinary processes within optimal timeframes and demonstrate effective consequence management.”
To address this backlog, Eskom is implementing an intervention through external appointments. “To address the backlog of cases, the forensic investigation function is implementing an intervention through the appointment of a panel of external service providers with the requisite expertise and capacity to accelerate case resolution.”
The appointed panel will require specialised capabilities. “It is expected of the appointed panel of forensic service providers to have unique skills and capabilities, which include but are not limited to conducting digital forensics, having the capacity to apply data analytics and artificial intelligence polygraph services, handwriting analysis, and document analysis.”
While Eskom maintains internal capacity, the scale of the challenge necessitates external support. The power utility stated: “While Eskom maintains internal forensic capability, the scale and specialised nature of legacy cases require additional external expertise to support accelerated delivery.”
The procurement will involve multiple suppliers. “Multiple contracts will be awarded to multiple suppliers, with a minimum of eight and a maximum of 10 service providers, with work allocated on an equal distribution basis to ensure accelerated case resolution and optimal resource utilisation.”
The statement further emphasises that: “All appointments will be conducted in line with Eskom’s procurement processes to ensure fairness, transparency, and compliance with applicable regulatory requirements,” and that “this intervention forms part of Eskom's broader efforts to strengthen governance and accelerate consequence management across the organisation.”
Meanwhile in another governance matter, Parliament announced that joint portfolio committees would receive a critical briefing on mechanisms to address municipalities’ debt to Eskom.
According to a media alert issued by Parliamentary Communication Services: “A joint meeting of the Portfolio Committee on Cooperative Governance and Traditional Affairs (Cogta) and the Portfolio Committee on Electricity and Energy will tomorrow receive an update on the implementation of distribution agency agreements (DAAs) between Eskom and municipalities.”
The scale of the municipal debt challenge is substantial. “According to Eskom’s quarterly financial reports, municipalities owe it R110.5 billion.”
The briefing will involve multiple stakeholders. “During the meeting, the Department of Electricity and Energy, Eskom, the Department of Cooperative Governance and Traditional Affairs, the South African Local Government Association, and the National Treasury will brief the committees.”
DAAs represent a strategic intervention to address the debt crisis. The statement explained that: “DAAs are intended to address the challenges contributing to municipal electricity debt. Through the DAAs, participating municipalities delegate certain electricity distribution and revenue-management functions to Eskom or other accredited agencies, while retaining ownership and political oversight of the service.”
Several municipalities have already committed to this approach. As stated: “Among the municipalities that have signed DAAs with Eskom are Maluti-a-Phofung Local Municipality, Emfuleni, and Merafong municipalities.”
The briefing will focus on multiple governance and operational improvements. “The briefing is expected to focus on how these agreements will strengthen governance, improve billing and revenue collection, ringfence electricity revenue, prioritise payment to Eskom, reduce electricity losses, and improve the reliability of electricity services in municipalities.”
Both initiatives underscore Eskom’s comprehensive approach to addressing governance challenges, whether through internal consequence management or external revenue recovery mechanisms.