Eskom contractor employee arrested for fraud and corruption involving a bogus supplier

Friday, 17 March 2023: Concerted efforts by the South African Police Services’ Directorate for Priority Crime Investigations (DPCI) and Eskom have led to the arrest of a contractor employee at Eskom’s Matla Power Station on 17 March 2023. The arrest is in connection with prior transgressions committed while the suspect was employed by Eskom in the capacity of Senior Buyer at Arnot Power Station in 2014.

The arrest follows allegations that the supplier was awarded an order for the supply of Bowl Pumps and received a down payment of R14.7 million upfront without goods being delivered. Eskom had to place an urgent order for the material with another company, suffering financial loss as a consequence.

An internal Eskom investigation found that the employee facilitated the payment without authorisation and resigned soon thereafter. The investigation also found that the supplier in question, which is no longer operational, had no track record in dealing with Eskom nor had any previous orders. Several misrepresentations and irregularities that appear to indicate that the employee’s involvement amounted to fraud and corruption were uncovered. Subsequently, a criminal case was registered following the investigation.

“We are grateful to the DPCI that the long arm of the law finally caught up with the suspect three years later. The arrest of the employee having left the employ of Eskom is an encouraging step in our persistent efforts in the fight against fraud and corruption. It will serve as deterrent to would be criminals who thought they could get away with crime by merely resigning from the organisation,” said Amos Phoshoko, Acting Senior Manager for Forensic and Anti-Corruption at Eskom.

The employee has been remanded in custody for a bail application on Wednesday 22 March 2023.


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