State-owned power utility Eskom has welcomed the arrest of two former employees of former contractor ABB Group (ABB), as well as their spouses, for alleged corruption linked to Eskom contracts worth R2.2-billion.

The four were arrested on July 12 by the Investigating Directorate of the National Prosecuting Authority (NPA), in a joint operation with the Hawks and the South African Revenue Service, for alleged corruption related to Eskom contracts awarded to ABB in 2015.

Eskom has congratulated the NPA’s Investigating Directorate on the arrests in this case and pledged 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 entity says.

Former ABB employees Mohammed Mooidheen and Vernon Pillay stand accused of using their influence and cashing in on irregular gratifications estimated at R8.6-million, which included cash and luxury vehicles, in irregularly awarding a R549.6-million subcontract at the Kusile power station to another firm.

Their spouses are also alleged to have benefited from the crime.

Some assets belonging to the suspects and their spouses were seized by the Asset Forfeiture Unit. According to the Investigatiing Directorate, the suspects have been released on bail and will appear in court again on October 14.

Eskom was one of the main crime scenes, as evidenced by the findings of the Commission of Enquiry into State Capture, and this case was one of the seminal matters on which the State Capture report recommended prosecutions, Eskom points out.

“The law enforcement system needs to show that the time for the criminal impunity and theft that continue to rob the people of South Africa of services they have so dearly paid for, is up,” the entity emphasises.

During December 2020, ABB South Africa agreed to pay Eskom R1.58-billion in funds it had been irregularly paid after it voluntarily disclosed collusion with certain Eskom officials to irregularly award it R2.2-billion for a control and instrumentation contract for the Kusile power station in 2015.