Freezing Order on Assets Linked to Eskom Corruption Probe
What Happened?
The Special Investigating Unit (SIU) secured a court order to freeze assets worth about R76.5 million that belong to businessman Siyabonga Moses Goodwill Nkosi and several trusts he controls. The freeze covers 17 properties and seven luxury vehicles.
How the Scheme Worked
According to the SIU, Eskom officials turned the procurement process at the Kusile and Matla power stations into a “jackpot” between 2021 and 2023. They:
- Approved inflated and unnecessary orders for electrical relays.
- Split large orders into smaller pieces to stay under the R1 million threshold, allowing them to use an informal tender process instead of the formal one.
- Uploaded incorrect part numbers into Eskom’s system so that only certain suppliers could bid, driving up prices for equipment that was never needed and now sits unused in storage.
Who Is Involved?
Nkosi is alleged to be connected to the scheme both personally and as a trustee of three trusts:
- Nkosi Royal Trust
- Sibongukukhanya Trust
- Siyabonga Kankosi Trust
The SIU says these trusts were used to move money from the questionable Eskom contracts into real estate and luxury vehicles.
What the Court Did
Special Court Judge BM Ngoepe granted the freezing order, directing that the listed assets be frozen while the legal proceedings continue. The order gives the SIU time to review the contracts, have them set aside by the special court, and prevent further dissipation of the funds.
Next Steps
- The SIU will examine the evidence and refer any signs of criminal conduct to the National Prosecuting Authority (NPA) for possible prosecution.
- It can also launch civil actions in the Supreme Court or a special court to recover the state’s losses and correct the wrongdoing.
Why It Matters
This case shows how misuse of public procurement can drain state resources and benefit a few individuals. By freezing the assets, the SIU aims to protect taxpayer money and hold those responsible accountable.
Conclusion
The freezing of Nkosi’s assets is a key step in the SIU’s investigation into alleged corruption at Eskom. It highlights the importance of transparent procurement processes and the role of oversight bodies in safeguarding public funds. As the investigation unfolds, more details may emerge about how the scheme operated and who else might be involved.
