Eskom has cancelled coal-supply agreements and construction contracts valued at R11-billion as authorities crack down on crime at the state-owned utility, President Cyril Ramaphosa said.

Litigation by Eskom has also had coal-supply agreements worth R3.7-billion declared invalid, and other coal and construction deals worth R10-billion have been set aside, Ramaphosa said in response to a question submitted by an opposition MP in parliament.

“There is currently an operational task team that is conducting investigations into allegations of alleged sabotage, fraud, corruption and the theft of Eskom’s infrastructure,” he said. The scope of the investigation covers areas including maladministration and non-performance of Eskom suppliers between 2010 and 2022.

Electricity minister Kgosientsho Ramokgopa in April announced plans, to be implemented over the next six months, to limit power cuts that have crippled South Africa — including addressing criminality and reducing infrastructure sabotage at Eskom.

André de Ruyter, the former CEO of Eskom, previously estimated the amount that’s being stolen from Eskom at R1-billion/month to corruption.

Ramaphosa also said:

Eskom is pursuing R4.8-billion of claims against suppliers and former directors;
The utility is recovering R2-billion unlawfully paid by Eskom to service providers; and
At least 25 former senior Eskom executives have been included in a database of individuals dismissed for their involvement in corruption. — (c) 2023 Bloomberg LP