ESKOM has restricted 101 suppliers and implicated directors and owners from doing business with the power utility for periods of up to 10 years as it intensifies efforts to tackle fraud, corruption and procurement misconduct.
The sanctions were imposed through Eskom’s supplier disciplinary process between February 2023 and March this year, although the cases date as far back as 2015, with most arising between 2016 and 2022.
Eskom said the suppliers were sanctioned following investigations and consideration by its Supplier Review Committee, which assesses alleged misconduct and determines penalties under the utility’s procurement and governance rules.
The action comes as scrutiny of public procurement remains high across the country, including in the Free State, where the National Treasury’s restricted-supplier database separately lists companies and individuals sanctioned in cases initiated by provincial authorities.
Eskom group chief executive Dan Marokane said fraud, corruption and procurement irregularities had damaged public confidence and required decisive consequence management.
“The progress achieved to date demonstrates Eskom’s determination to confront fraud and corruption in a practical and measurable way,” he said.
Eskom said it now aimed to process newly referred supplier disciplinary cases within 90 days.
The utility also rejected allegations by the Association of Private Security Owners of South Africa that 26 black-owned companies among those restricted had been referred to National Treasury without due process.
It said all affected suppliers had been given an opportunity to respond to allegations before decisions were made and that the referrals involved serious misconduct, including fraud, corruption, misrepresentation, collusion and other integrity breaches.
Of 53 cases Eskom referred to Treasury for restriction, only one involved a supplier providing security-related services, according to the utility.
Under National Treasury procurement rules, suppliers restricted by state-owned entities may also be placed on the national restricted-supplier database, effectively preventing them from doing business with the wider state for the applicable period.
Eskom said that, by Thursday, Treasury had listed 35 companies and 45 directors or owners following referrals arising from its disciplinary process, with further cases being prepared for submission.