Durban — Eskom has welcomed the arrest of two former employees of ABB Group (ABB) for Eskom-related corruption linked contracts involving R549.6 million.
Eskom said it hoped more arrests and successful prosecutions would be made.
The employees were arrested with their wives in Durban in KwaZulu-Natal and Middelburg in Mpumalanga.
The National Prosecuting Authority Investigating Directorate arrested the four and seized their electronic equipment during a joint search and seizure operation with the Hawks and South African Revenue Service on Tuesday morning.
Mohammed and Raeesa Mooidheen, who were arrested in Middelburg and appeared in the Randburg Magistrate’s Court, were granted bail of R50 000 and R30 000, each. Vernon and Aradhna Pillay, who were arrested in Durban and appeared in the Durban Specialised Crimes Court, were granted bail of R20 000 each.
National Prosecuting Authority Investigating Directorate spokesperson Sindisiwe Seboka said the four were linked to the defrauding of Eskom through its contractor ABB and stand accused of cashing in on gratifications estimated at R8.6 million, including cash and luxury cars, by inflating prices for Impulse, a subcontractor to ABB. The former ABB employees, Mooidheen and Pillay, stand accused for their influence in the awarding of over R549.6 million of the Eskom-ABB contract, for the benefit of Impulse between the period 2015 to 2017. This is reportedly despite the fact it was reported Impulse did not actually qualify to do the work required. The accused are charged with corruption, fraud and money laundering.
Seboka added the matter will return to court on October 14, 2022, for further investigation of assets seized on Tuesday.
“Eskom congratulates the NPA’s Investigating Directorate on the arrests in this case, and pledges to do everything in its power to assist the investigations to bring about successful prosecutions. Eskom also hopes this is just the beginning and that more arrests will follow on this matter, and on the more than 100 other criminal cases lodged with the law enforcement agencies over the years,” Eskom said.
“Eskom was one of the main crime scenes, as evidenced by the findings of the Commission of Inquiry on State Capture, and this case was one of the seminal matters on which the State Capture Report recommended prosecutions. The law enforcement system needs to show that the time for the criminal impunity and theft that continue to rob the people of South Africa of services they have so dearly paid for, is up,” Eskom added.
It added that during December 2020, ABB South Africa agreed to pay Eskom R1.577 billion of funds it had been irregularly paid after it voluntarily disclosed collusion with certain Eskom officials to irregularly award it R2.2 billion for a control and instrumentation contract for Kusile Power Station in 2015.
Daily News