Johannesburg: The Special Investigating Unit (SIU) has achieved a significant milestone in recovering funds misappropriated from Eskom, having successfully secured a preservation order to freeze R76.5 million in assets. These assets, which include luxury cars and real estate, are linked to businessman Siyabonga Moses Goodwill Nkosi.
According to South African Government News Agency, the preservation order prevents the assets from being sold, transferred, or concealed while the SIU attempts to annul irregular contracts and recoup public funds. An SIU investigation, commissioned by President Cyril Ramaphosa, uncovered alleged corruption at Eskom's Kusile and Matla Power Stations, where officials reportedly exploited procurement processes.
The investigation revealed that from 2021 to 2023, officials authorized inflated purchase orders for relays, crucial equipment for power stations. Instead of providing essential services, Nkosi's companies submitted invoices with relays priced at R50,000 each, despite market prices ranging from R180 to R450. This overpricing resulted in a direct financial loss of R73,650,994.87 to Eskom.
Eskom officials allegedly manipulated order amounts to remain under the R1 million threshold, thereby circumventing formal procurement procedures. False part numbers were reportedly entered into Eskom's systems, allowing only colluding vendors to bid and inflating costs for unnecessary equipment.
The SIU disclosed that Nkosi allegedly utilized the Nkosi Royal Trust, Sibongukukhanya Trust, and Siyabonga Kankosi Trust as channels to launder the misappropriated funds. These funds were reportedly invested in prime properties across Gauteng, KwaZulu-Natal, and Mpumalanga, as well as luxury vehicles such as Lamborghinis and Porsches.
The preservation order is a critical step for the SIU as it prepares to approach the Special Tribunal to have these contracts reviewed and annulled. The order grants the SIU 60 days to initiate proceedings and pursue recovery of state funds.
The SIU is authorized under the Special Investigating Units and Special Tribunals Act 74 of 1996 to refer any criminal evidence to the National Prosecuting Authority. Additionally, the SIU can initiate civil proceedings to rectify any wrongdoing and recover financial losses suffered by the State.