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SIU to Probe Transnet and Eskom

April 10, 2018

Department of Public Enterprises

The Special Investigating Unit is to probe allegations of corruption and maladministration at Transnet and Eskom.

The proclamation was published in Government Gazette 41561.

Some of the issues to be investigated include the procurement of coal and diesel by Eskom, maladministration at Eskom with regard to the Medupi and Kusile Power Station Projects and the Ingula Pumped Storage Scheme, the appointment of McKinsey, Trillian and Regiment Capital to provide services to Eskom and Transnet and the procurement of goods and services by Transnet.

Meanwhile, the public enterprises minister, Pravin Gordhan, has appointed a new interim board of directors for Denel.

In a statement, the minister referred to the 2018 State of the Nation Address in which president Cyril Ramaphosa called for the stabilization and revitalization of state-owned enterprises.

The minister emphasized that the state has failed up to now to use the provisions of the Companies Act “to hold directors of SOC boards fully liable for their actions.”

Mr Gordhan also announced that he will soon be “reviewing the composition of Boards at other SOC’s under the authority of the Department of Public Enterprises as well as the executive management teams to ensure that SOC’s are set on a new path.”