South African Gov. welcomes arrests in R400 million Eskom and Sasol tender fraud case

The South African Government has applauded the arrest of six engineering firm directors accused of BEE-fronting and tender fraud amounting to R400 million at Eskom and Sasol.

The Hawks, formally known as the Directorate of Priority Crimes Investigation, made the arrests earlier in the week, charging the firm with BEE fronting, claiming a valid shareholder agreement, and misrepresenting themselves to secure tenders by submitting fraudulent financial records.

The accused faces charges under the Broad-Based Black Economic Empowerment (B-BBEE) Act, theft, fraud, and money laundering. Government spokesperson Nomonde Mnukwa expressed satisfaction with the arrests, stating, “Government welcomes the Hawks arrest of six suspects for allegedly perpetrating a fraud scheme related to tenders at Eskom and Sasol in 2017, to the tune of R400 million.

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Mnukwa explained that crime and corruption hinder economic growth and development, encouraging citizens to report corruption via the National Anti-Corruption Hotline (0800 701 701).

“Crime & corruption, whether large or small, remains one of the greatest challenges facing our country, holding back economic growth and development. If you see something, say something, report corruption by dialling the National Anti-Corruption Hotline on 0800 701 701,” said Mnukwa.

The engineering firm’s alleged wrongdoing was exposed by former director Baleseng Zinyana, who took the firm to court in September last year after being denied access to accounting records for an audit.

Another former director, Jack Madzivhandila, reported the firm to the BBBEE Commission in 2019 for questionable practices. The accused are scheduled to appear in court on November 29.