SIU freezes R76.5m in assets linked to alleged Eskom procurement syndicate

The Special Investigating Unit (SIU) has successfully frozen assets valued at R76.5 million linked to businessman Siyabonga Moses Goodwill Nkosi and his network of trusts.

This marks a significant step in the ongoing effort to recover funds lost to state-owned entity mismanagement.

The preservation order, granted by the Special Tribunal, covers 17 immovable properties and 7 luxury vehicles. The order serves as a preventative measure, ensuring that these high-value items cannot be sold, transferred, or concealed while the SIU continues its comprehensive investigation into the matter.

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The probe uncovered widespread procurement irregularities at Eskom’s Kusile and Matla power stations between 2021 and 2023. These irregularities have raised serious concerns regarding the internal controls and oversight mechanisms present at these critical infrastructure sites during that period.

SIU spokesperson Selby Makgotho stated that officials allegedly approved inflated purchase orders for equipment essential to the operations of the power stations.

"Instead of delivering reliable service, Nkosi’s companies delivered invoices. Eskom officials signed off on contracts that priced relays at R50,000 each, when the market price was between R180 and R450. This manipulation resulted in a direct financial loss of R73.6 million to Eskom."

By artificially hiking prices, those involved were able to siphon off millions in state funds that were originally earmarked for power generation stability.

The SIU remains committed to holding those responsible for the depletion of Eskom's resources accountable through both civil and criminal litigation.