ESKOM INQUIRY REFERENCE BOOK

This briefing booklet details alleged systemic corruption and 'state capture' at Eskom, South Africa's primary power utility, between 2009 and 2017. It highlights how political interference in board appointments—specifically those linked to the Gupta family—led to the repurposing of governance to facilitate fraudulent procurement in coal, nuclear generators, and consulting services. Key examples include the R659 million pre-payment to Tegeta for the purchase of Optimum Coal Holdings, the irregular award of the Koeberg generator tender to Areva, and R500 million in payments to Trillian Capital Partners. The document argues that these actions resulted in billions in irregular expenditure, a qualified audit in 2017, and a severe decline in the utility's financial and operational integrity.

• Eskom is the largest state-owned company (SOC) in South Africa, generating over 90% of the country's electricity and controlling the national high voltage transmission grid. Its assets were valued at R710 billion in 2016/7, with annual revenues nearly three times those of Transnet and six times those of SAA.
• The document describes a coordinated 'project of state capture' where Eskom's governance structures were systematically repurposed to benefit a politically connected elite, specifically the Gupta family. This involved centralizing decision-making, appointing inept or corrupt individuals to top positions, and creating 'shadow' institutions of accountability.
• Significant corruption is alleged in Eskom's operating expenditure, particularly in coal procurement. Average coal costs rose from R190 per ton in 2011 to nearly R400 per ton. The Gupta-owned Tegeta was awarded lucrative contracts, including a R659 million pre-payment from Eskom in April 2016 to help Tegeta purchase Optimum Coal Holdings from Glencore.
• Eskom's governance was severely impaired through the appointment of boards with close ties to the Gupta family. In December 2014, six out of eight board appointees had 'unambiguous connections' to the Guptas. This period saw high turnover and the suspension of experienced executives, including the suspension of four top officials in early 2015.
• The procurement of steam generators for the Koeberg plant was marked by political interference. Minister Malusi Gigaba vetoed a board decision to award the bulk of the tender to Westinghouse in 2011. After a protracted process involving a 'nuclear training' trip to France funded by EDF, the tender was awarded to Areva in August 2014.
• Eskom paid Trillian Capital Partners at least R500 million for consulting services, despite Minister Lynne Brown denying in December 2016 that any such contracts existed. A Trillian report, produced in two days, was used to justify awarding a R4 billion tender for the Duvha boiler to Dongfang, contradicting internal recommendations and KPMG reports.
• Matshela Koko is implicated in awarding R1 billion in contracts to Impulse International, a company where his step-daughter, Koketso Choma, was a director and held a financial interest through the Mokoni Trust.
• Eskom's relationship with major coal suppliers like Exxaro, Anglo Coal, and Glencore deteriorated, with several long-term, low-cost contracts terminated or not renewed. This 'squeezing out' of coal majors allegedly facilitated the shift toward shorter-term, more expensive contracts with Gupta-linked entities.
• The utility's financial health has declined, with a qualified audit released in July 2017 exposing R3 billion in irregular expenditure. The document notes that Eskom's credit rating has plunged, leading to a reliance on development finance institutions like the China Development Bank.

APA

Eberhard, A., & Godinho, C. (2017). ESKOM INQUIRY REFERENCE BOOK. Public Affairs Research Institute. https://pari.org.za/wp-content/uploads/2017/09/Eskom-Enquiry-Booklet-Sept-2017.pdf

Chicago

Eberhard, Anton, and Catrina Godinho. ESKOM INQUIRY REFERENCE BOOK. Public Affairs Research Institute, 2017. https://pari.org.za/wp-content/uploads/2017/09/Eskom-Enquiry-Booklet-Sept-2017.pdf.

Wikipedia

{{cite report |last1=Eberhard |first1=Anton |last2=Godinho |first2=Catrina |title=ESKOM INQUIRY REFERENCE BOOK |publisher=Public Affairs Research Institute |date=August 2017 |url=https://pari.org.za/wp-content/uploads/2017/09/Eskom-Enquiry-Booklet-Sept-2017.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{eberhard2017eskom, author = {Eberhard, Anton and Godinho, Catrina}, title = {{ESKOM INQUIRY REFERENCE BOOK}}, institution = {Public Affairs Research Institute}, year = {2017}, month = aug, url = {https://pari.org.za/wp-content/uploads/2017/09/Eskom-Enquiry-Booklet-Sept-2017.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }