6 Arrested for Eskom-Related Fraud; South Africans Now More Frustrated Over High Electricity Prices

6 Arrested for Eskom-Related Fraud; South Africans Now More Frustrated Over High Electricity Prices

  • Six suspects were arrested for R400 million tender-related frauds at both Eskom and Sasol
  • The Directorate for Priority Crime Investigation warned businesses against engaging in corruption
  • South Africans welcomed the news but also understood why the electricity prices were high
Six individuals were arrested for fraud at Eskom and Sasol amounting to over R400 million.
South Africans are frustrated with Eskom's high tariffs after learning that six people were arrested for fraud related to the power utility amounting to millions. Image: Rodger Bosch/ @CliffShiko
Source: Getty Images

The Directorate for Priority Crime Investigation (DPCI/ Hawks) is cracking down on corruption in the country.

The specialised unit recently arrested six suspects for fraud, theft and money laundering amounting to over R400 million.

The individuals, who are company representatives for NJM Heat Treatment and NDE Services, among other businesses, were arrested for tender fraud at both Eskom and Sasol.

Mark Smith (61), Alexander Roditis (45), Vanessa Chungu (43), Raymond Crozier (62), Phillip Le Roux (56) and Ronald Hoy (58) all appeared in court and were released on R20 000 bail each.

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Suspects submitted fraudulent tenders

Hawks spokesperson Katlego Mogale said the suspects misrepresented themselves to Eskom by submitting fraudulent tenders:

“In October 2017, the directors knowingly submitted falsified financial records to Eskom to secure a tender, leading to fraudulent activities."

Mogale added that they had similar fraudulent dealings with Sasol. The approximate loss to both entities is over R400 million.

Hawks warn about consequences of corruption

The National Head of the Hawks, Lieutenant General Godfrey Lebeya, has warned businesses against engaging in corrupt activities.

“We urge all businesses to desist from corrupt actions and maintain transparency and integrity in their operations. Corruption has severe legal consequences, be it in the private or public sector, and undermines trust and credibility,” he said.

South Africans welcome the arrests

South Africans have welcomed the news, with some joking that they now understand why electricity prices are so high.

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Kay Wehmeyer said:

“And then, due to this type of fraud, they want to charge residents more.”

Kogie Moodley added:

“Soft target. They need to pay the price because the public is being ripped off with a 36% increase in electricity.”

@GODSGIFT_0 joked:

“Now you South Africans know why you guys had loadshedding🤣”

@GetBusy1345768 added:

“No wonder electricity is so expensive.”

@SebinTdr asked:

“That is why @Eskom_SA and @NERSA_ZA want to punish us? For their negligence?”

@PGAA123:

“They must do long jail time, no mercy. We are paying high electricity rates because of fraudsters at Eskom.”

Group arrested for R2 billion fraud

In related news, the Hawks previously arrested eight people for fraudulent activities related to construction at the Kusile Power Station.

Briefly News reported that the group were arrested in connection with R2 billion worth of unlawful contracts at the power station. The National Prosecuting Authority confirmed that the group were arrested on fraud, corruption and money laundering charges.

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Source: Briefly News

Authors:
Byron Pillay avatar

Byron Pillay (Editor) Byron Pillay is a Current Affairs Editor at Briefly News. He received a Diploma in Journalism from the Caxton Cadet School. He spent 11 years covering a wide variety of news as a community journalist, including politics, crime and current affairs. He also was a Head of Department for Sports Brief, where he covered both local and international sporting news. Email: byron.pillay@briefly.co.za

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