Public Enterprises Minister Pravin Gordhan has distanced himself from the “R500 million security tender” awarded by former Eskom CEO Andre de Ruyter. Picture: Bhekikhaya Mabaso/ Africa News Agency (ANA)
Public Enterprises Minister Pravin Gordhan has distanced himself from the “R500 million security tender” awarded by former Eskom CEO Andre de Ruyter for intelligence gathering to a company owned by apartheid police commissioner George Fivaz.
Gordhan said De Ruyter had indicated in passing that he was undertaking an investigation into corruption at Eskom.
“I did not approve any ‘R500 million security tender’,” he said.
Gordhan said he did not get involved in tenders issued by state-owned entities (SOEs).
“I did not approve, nor was I asked to approve any investigation,” he said.
Gordhan was responding to EFF MP Omphile Maotwe, who asked whether he was informed that the information provided to Eskom management indicating a potential serious security risk to Eskom’s operations and assets was sourced from a privately-funded investigation when he approved the R500 million security tender.
Maotwe also asked about the issues that gave credibility to the findings of an investigation conducted by individuals without proper accreditation and that was carried out in a clandestine manner that warranted his approval.
“It is now a well-established fact that massive corruption took place during the State Capture period by foreign and local companies and individuals within Eskom.
“Some of these activities continue to occur, involving both ‘outsiders’ and ‘insiders’,” Gordhan said.
Asked whether there were checks and balances to ensure that there was no corruption, price inflation, and/or fraud in the awarding of the tender, the minister said Eskom has procurement policies and procedures.
Gordhan also said the department did not get involved in operational activities of Eskom, including procurement of goods and services by the company.
“However, the department has a process in place to oversee that when allegations of maladministration are reported concerning the affairs of Eskom, an investigation is conducted; and should the allegations be confirmed, recommendations are fully implemented.”
He stated that the department was monitoring Eskom’s investigation into the matter as part of the process that is in place to track forensic investigations and implementation of recommendations emanating from them.
“If the board of a SOE is unable to comply with the PFMA provisions, the failure to comply must be disclosed to the Minister of Public Enterprises.”
Gordhan said the Department of Public Enterprises was not aware of any investigation concerning the affairs of any of the SOEs under the ministry that were funded by private companies and/or through donor funds.
“Records available to the department indicate that none of the SOEs are conducting any investigation that is funded by a private company or through donor funding.
“The department is aware of investigations conducted by law enforcement agencies into the affairs of SOEs, and is actively monitoring progress relating to this, including implementation recommendations emanating from them.”
The minister said Eskom had its own Forensics and Anti-Corruption Department, which provided an independent and objective forensic service into fraud, corruption, and general and financial irregularities in the company.
Eskom’s internal capacity was augmented by a panel of external investigators.
“This service, including the costs of the panel, are funded from Eskom’s own operating account, and no investigations are funded by external entities or private donors. In cases where our forensic investigations uncover criminal conduct, these are referred to law enforcement agencies for further investigation.”
Gordhan stated that Eskom’s Forensic Department was already investigating the security tender.
“Eskom will make public the findings of its investigation once the process has been concluded,” he said.
Gordhan added that the Eskom group security did not conduct nor authorise any private investigation that was funded by other companies or private donors to date.
“The security department, through its internal investigation mandate, has contracts in place for outsourced specialised investigation services focusing on high impact crimes such as coal, diesel, and fuel oil crimes affecting Eskom or infrastructure crimes.
“These types of contracts are fully funded by Eskom. All Eskom criminal investigations are conducted by the SAPS.”
Cape Times