Energy expert claims kickbacks and corruption still rampant at Eskom

Energy expert claims kickbacks and corruption still rampant at Eskom

- An expert claims that corruption remains a serious issue at Eskom

- The expert, Ted Blom, says that inflating prices and receiving kickbacks is still a common occurrence

- His analysis comes after the SOE recorded a R20.7 billion loss in the last financial year

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An energy experts claims there is still extensive corruption at Eskom.

Analysts Ted Blom says that corruption costs the power utility R40 billion each year.

According to Blom, this is due to maladministration, fraud, inefficiencies and poor planning.

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Additionally, Blom says that kickbacks are still a major problem at the SOE. He says that officials often inflate prices from suppliers and take a cut for themselves, has gathered. For example, he says that Eskom has begun paying 17% more for coal, despite this being three times the inflation rate.

"Fictitious invoicing is still going on on a big scale," Blom says.

In a recent interview with Cape Talk, Blom added that there is also a disconnect between regular employees at the utility and the senior executives. He says this make it very difficult to get accurate financial information from the institution.

According to Blom, this was the main reason that outgoing Eskom CEO Phakamani Hadebe was not able to push through significant reforms at the SOE.

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Blom's analysis comes as the latest Eskom figures paint a bleak picture of the power utility. The SOE recorded a loss of over R20 billion in the last financial year but still paid out over R44 million to its top executives.

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