Eskom is starting disciplinary action against several employees after an interim investigation into a diesel contract found procurement breaches, and possible criminal charges are still being considered.
The power utility provided an update on its diesel procurement and storage contract for Eskom’s open cycle gas turbine (OCGT) power stations on Friday.
Diesel tender flaws: Eskom starts disciplinary cases
Eskom’s Group Investigations and Security (GIS) function investigated possible irregularities under tender MWP2197GX, and an independent forensic firm has released an interim report.
The utility said the probe started in March 2025 after monitoring contract performance during operational emergencies, including load shedding in early 2025. Eskom also received information through reporting and whistleblowing.
The firm probed contracts for the supply of diesel to Eskom’s OCGT power stations. These power stations support the utility’s system during emergencies, especially during times of high breakdowns and peak demand.
“At this stage, the interim report has identified instances of non-adherence to Eskom processes, in both the areas of the procurement of the services and the management of the contracts,” Eskom said in a statement.
This comes after investigative journalism organisation amaBhungane Centre for Investigative Journalism found that Eskom awarded R21 billion in diesel contracts to small, inexperienced companies.
These companies included Severino Industries, run by a 24-year-old graduate appointed a week before the tender closed, and Nutinox and Lanele Resources.
amaBhungane investigation
According to the publication, Eskom awarded Lanele the contract despite the Special Investigating Unit (SIU) investigating the company for allegedly bribing Transnet officials, and Nutinox also won a contract despite lacking secured storage.
amaBhungane also revealed that Eskom bent tender rules by allowing 15-day payment terms instead of 60, failed to enforce storage requirements, and allegedly made irregular prepayments to suppliers who lacked cash or credit to buy diesel upfront.
Eskom said that as a result of the findings in the independent forensic firm’s interim report, it would start disciplinary proceedings against several employees who breached its procurement processes.
The power utility said it expects to charge more employees once it issues the final report in mid-June 2026.
Eskom will also take disciplinary action against suppliers who breached its policy and processes.
The Eskom board chairman, Mteto Nyati, said the utility maintained zero tolerance for corruption and any breach in processes.
‘Zero tolerance’ to corruption
“This investigation was initiated proactively by Eskom management itself, demonstrating our commitment to uncover and address wrongdoing without external prompting,” Nyati said.
“Consequence management is immediate, uncompromising, and non-negotiable. Those implicated, whether employees or suppliers, will be held accountable through disciplinary action and, where warranted, criminal processes.”
The chairman added that Eskom will seek to recover every rand of financial loss.
Eskom Group chief executive Dan Marokane said the interim report stressed the need to hold employees who disregarded the utility’s processes accountable.
He added that the majority of staff are honest and hard-working, and Eskom will not allow a few to tarnish the majority’s reputation.
“The ongoing resourcing drive to adequately capacitate the finance, internal audit, and forensics functions to address key skills gaps within the business continues to attract talent to Eskom,” Marokane said.
Criminal charges not ruled out
“We are applying the same level of effort to ending years of governance and accountability failings as we did to ending loadshedding by continuously strengthening our controls as the landscape evolves.”
The power utility said it is not ruling out the possibility that criminal charges will follow. Due to the suspicion of fraud and corruption, Eskom has reported this matter to the Directorate for Priority Crime Investigation (DPCI).
Eskom said due to the disciplinary action, the interim nature of the report, pending the final report and the possibility of criminal charges, it will not provide details or comment on this matter further.
