Embattled power utility Eskom is banking on technology to arrest corruption, which has plagued the state-owned enterprise (SOE) over the years.
In an op-ed by Eskom board chairperson, Mpho Makwana, the power utility says it is proactively dealing with fraud and corruption.
At the centre of this fight, Makwana says different technologies recommended by the Zondo Commission will be deployed.
Over the years, Eskom has been struggling to keep the lights on and corruption has often been cited as one of the biggest reasons for the decay at the SOE.
“Eskom is rooting out fraud and corruption within its ranks and supply chain through proactively implementing recommendations made by the Zondo Commission and beyond,” says Makwana.
According to Makwana, in line with the Zondo Commission’s recommendation for review of key internal policies such as anti-bribery and corruption, Eskom is implementing various initiatives such as an automated procurement system to better manage procurement spend and protect against integrity breaches; the use of tools such as PriceCheck in supply chain management; the digitilisation of stock control; the use of an augmented procurement model in certain business areas; and the use of e-auction.
“The organisation will continue to monitor technology developments and will introduce suitable tools as they become available,” he says.
“Our close collaboration with the law enforcement agencies is instrumental in addressing the Zondo Commission’s recommendations.”
He adds that key among the recommendations is that the National Prosecuting Authority (NPA) undertake the criminal prosecution of former Eskom board members and executives involved in decision-making that resulted in inter alia the breach of the Public Finance Management Act.
“The Zondo Report was unequivocal in singling out former Eskom executives among those who must be pursued for their alleged involvement in nefarious activities at the company. Amongst the several findings of malfeasance by the executives includes the irregular supply of coal to Eskom from Tegeta's Brakfontein Colliery whereby the Commission recommended that the NPA consider criminal action against the executives and a range of other implicated individuals from both within and outside the organisation.”
Makwana notes that one of the success stories to date includes the matter relating to the unlawful payment of R1.6 billion to McKinsey, Trillian and Regiments.
He says Eskom has since recovered R1.1 billion from McKinsey and has a judgement against Trillian. Trillian has been placed in liquidation after the firm failed to abide by the court judgement and this has resulted in the sequestration of Trillian’s key shareholder and director.
Through a collaborative partnership with the Special Investigative Unit (SIU), he adds, Eskom has recouped over R2 billion in funds unlawfully paid out to service providers.
Together, a recovery of approximately R1 billion from SAP is underway.
German-based software giant SAP is facing a fresh claim of R1 billion from the SIU over fees paid by Eskom on State Capture deals.
“On civil recoveries, jointly with the SIU, Eskom is pursuing R3.8 billion through civil action against 12 defendants who played a central role in State Capture. Seven of the 12 defendants are former Eskom executives and directors.”
He points out that an Eskom dedicated State Capture task team is executing its implementation plan to address the findings in the Zondo Report.
“Steps already taken include disciplinary action against delinquent employees, the flagging of delinquent employees for future employment, disciplinary action against delinquent suppliers, deregistration of delinquent suppliers from Eskom’s supplier database, blacklisting of delinquent suppliers by the National Treasury, taking action against delinquent directors, instituting civil recovery processes and criminal proceedings, reporting of delinquent employees to professional bodies, and reviewing of Eskom-specific policies, procedures, and governance requirements.”
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