ESKOM INQUIRY REFERENCE BOOK

The document details the systematic repurposing of Eskom's governance to facilitate large-scale corruption by a politically connected elite, specifically the Gupta family. It highlights the hollowing out of technical expertise through biased board and executive appointments, leading to irregular procurement in coal, IT, and infrastructure. Key cases include the awarding of overpriced contracts to Tegeta and the use of Trillian as a consultancy conduit. The authors argue that these failures have compromised Eskom's financial sustainability and South Africa's economic growth, recommending structural reforms and the unbundling of the utility.

• Eskom's governance was systematically weakened through the appointment of board members and executives with ties to the Gupta family, replacing technocratic expertise with political loyalty. In December 2014, six out of eight board appointees had "unambiguous connections with the Gupta family".
• The Gupta family used their influence to secure lucrative coal contracts through Tegeta, often without competitive tenders and despite quality failures. Eskom provided a R659 million pre-payment to Tegeta to facilitate its purchase of Optimum Coal Holdings after CEO Brian Molefe and board chair Ben Ngubane pressured the Mining Minister to cancel Glencore's mining rights.
• Eskom's procurement processes for critical infrastructure were manipulated, as seen in the Koeberg steam generator tender where Minister Malusi Gigaba vetoed a board decision to award the bulk of the tender to Westinghouse, eventually leading to an award to Areva.
• The utility suffered significant financial losses due to irregular IT and media contracts. Acting CEO Collin Matjila signed a R43 million business breakfast deal with the Gupta-owned New Age newspaper, which auditors later labeled a "reportable irregularity". Additionally, Eskom ignored a potential R1 billion saving from internalizing IT functions to retain T-Systems, a firm connected to the Guptas.
• The award of a R4.8 billion boiler refurbishment contract at Duvha power station to the Chinese company Dongfang was based on a two-day report by Trillian, a Gupta-associated firm, contradicting recommendations from Eskom executives and KPMG.
• Eskom paid Trillian Capital Partners at least R500 million for consulting work, despite Minister Lynne Brown initially denying any such contracts existed. Trillian is alleged to have functioned as a conduit for transmitting money to Gupta-connected networks.
• Matshela Koko is implicated in awarding R1 billion in contracts to Impulse International, a company where his step-daughter served as a director and held a financial interest through the Mokoni Trust.
• The financial health of Eskom has deteriorated severely, with a 2017 qualified audit exposing R3 billion in irregular expenditure. The utility's credit rating has plunged, and it has increasingly relied on debt from 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} }