Eskom, SIU issue summons to recover funds from former Eskom executives, Gupta family

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Eskom and the Special Investigating Unit (SIU) have issued summons in the North Gauteng High Court to recover funds from former Eskom executives, former board members, and members of the Gupta family.

The power utility says the funds were corruptly diverted from Eskom to improperly and illegally benefit the Gupta family and entities during their 2015-16 acquisition of the Optimum Coal Holdings operations.

In a statement, Eskom says they lost R3.8 billion in funds illegally. The defendants are former Eskom employees Brian Molefe, Anoj Singh,  Matshela Koko as well as Suzanne Margaret Daniels.

Eskom says it also seeks damages against non-executive directors Baldwin Ben Ngubane, former government Minister of Mineral Resources Mosebenzi Zwane, and the Gupta brothers.

Eskom Spokesperson Sikonathi Mantshantsha explains:

Eskom says all the former executives and board members breached their fiduciary duty of care and good faith to the power utility. It says it will continue to review major contracts concluded over the years, and where any evidence of corruption has been discovered it will recoup its losses.

Energy analyst Ted Bloem says Eskom will not be able to recover most of the money and that the process will be costly.

“They are trying to close the stable door after the horse has bolted, the money is gone. For them to get money from Molefe and Koko, most of the money is gone with the Guptas. I don’t know why Eskom awaited for four years before they institute the action. So they are wasting more money by court action.”

Below is Eskom’s statement: