'This is just the beginning': Eskom hopes for more arrests for corrupt Kusile deal
Power utility Eskom says the four arrests in relation to a corrupt ABB Group contract for work at the Kusile power station is hopefully just the beginning, with more arrests expected to follow soon.
Eskom on Wednesday issued a statement following News24's report that two former employees of the Swiss engineering firm and their wives were arrested by the Investigating Directorate of the National Prosecuting Authority (NPA) in a joint operation with the Hawks and the South African Revenue Service on Tuesday. This is one of the State Capture cases the NPA is pursuing.
The accused are Mohammed and Raeesa Mooidheen and Vernon and Aradhna Pillay, News24 reported.
The matter concerns a corrupt contract awarded during the construction of Kusile in 2015 of about R2.2-billion.
ABB irregularly appointed Impulse International as a sub-contractor and paid it R549-million in 2016 and 2017. At the time, former acting Eskom CEO Mathsela Koko's step-daughter, Koketso Choma, was a shareholder of Impulse, News24 reported.
"Eskom congratulates the NPA's Investigating Directorate on the arrests in this case, and pledges to do everything in its power to assist the investigations to bring about successful prosecutions.
"Eskom also hopes this is just the beginning and that more arrests will follow on this matter, and on the more than 100 other criminal cases lodged with the law enforcement agencies over the years," the power utility said.
The former employees – Mohammed Mooidheen and Vernon Pillay – are accused of using their influence to get kickbacks estimated at over R6-million. This includes cash and luxury vehicles from irregularly awarding the Impulse contract. This also allegedly benefited their spouses.
Some of the assets belonging to the accused and their spouses have been seized by the Asset Forfeiture Unit.
They have been released on bail and will appear in court on 14 October 2022.
In December 2020, ABB South Africa reached a settlement with Eskom of R1.577-billion - for overpayments the power utility made to the contractor.
The construction of mega coal-fired power stations Kusile and Medupi have suffered significant cost overruns, largely linked to inflated contracts.
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