Eskom seeks to recover diverted funds from former executives

A further claim pertains to payments made unlawfully to consultants by the utility.
Image: Moneyweb

South Africa’s Eskom Holdings SOC Ltd. issued a summons against former executives and board members, seeking to recover about R3.8 billion ($220 million) that it alleges was diverted illegally.

The funds were used to help the politically connected Gupta family acquire operations of Optimum Coal Holdings, which supplied the fuel to one of the utility’s power plants, Eskom and South Africa’s Special Investigating Unit said in a statement. A further claim pertains to payments made unlawfully to consultants by the utility.

Members of the Gupta family have been linked to former President Jacob Zuma during a period of so-called state capture, when funds were irregularly paid to various entities under contracts that had not gone through stringent vetting processes. Zuma and the Guptas have denied wrongdoing.

The 12 defendants in the delictual claim brought by the state-owned power utility include former Eskom Chief Executive Officer Brian Molefe, former group executive Matshela Koko and former Minister of Mineral Resources Mosebenzi Zwane, along with Gupta family members and associates.

A summons was issued in the North Gauteng High Court, according to the statement.

© 2020 Bloomberg

COMMENTS   2

Sort by:
  • Oldest first
  • Newest first
  • Top voted

You must be signed in to comment.

SIGN IN SIGN UP

“Diverted money” I ask you.

No wonder they don’t lock anyone up and throw the keys away!

What is illegal about diverting money?

What about

THEY HAVE BEEN ARRESTED FOR THEFT AND RACKETEERING AND BAIL HAS BEEN REFUSED!!!!

It would be interesting to see whether there was a trace between Glencore selling Optimum and whether Glencore got a sweetheart deal on the strategic oil reserves.

End of comments.

LATEST CURRENCIES  

USD / ZAR
GBP / ZAR
EUR / ZAR

Podcasts

NEWSLETTERS WEB APP SHOP PORTFOLIO TOOL TRENDING CPD HUB

Follow us:

Search Articles:Advanced Search
Click a Company: