The Special Investigating Unit (SIU) has welcomed the extradition of former Eskom contractor, Michael Lomas, who was arrested on fraud and corruption charges stemming from Eskom’s R745 million irregular contracts at Kusile power station.
Lomas was arrested in April 2021 and is one of five accused of the alleged crimes.
His co-accused are former Eskom group executive for group capital division Abram Masango; former Eskom senior manager for group capital division France Hlakudi; as well as Owner of Tubular Construction Project Antonio José Trindade; and owner of Babinatlou Business Services Hudson Kgomoeswana.
SIU spokesperson Kaizer Kganyago said Lomas’s arrest comes hot on the heels of an intensive investigation by the SIU at Eskom, which uncovered evidence of criminal actions involving five accused individuals.
“This evidence, gathered under the SIU Act, was referred to the National Prosecuting Authority (NPA) and the Directorate for Priority Crimes Investigation (Hawks) for further action. The investigation, initiated in 2018 under Proclamation R11, focuses on Eskom's procurement and contracting processes and related payments,” he said.
The 77-year-old Lomas is accused of taking kickbacks on contracts between his firm, Tubular Construction, and Eskom for work at the Kusile power station, which were worth in excess of R1.4 billion.
Lomas, who was wheeled on a wheelchair, landed shortly after 12pm at OR Tambo International Airport on Friday under heavy police escort.
Kganyago said the SIU applauds the diligent work of the NPA’s Investigating Directorate as well as the Hawks and international partners whose collaboration has led to this critical milestone.
“The SIU will continue to support the prosecutorial process and ensure that all individuals implicated in corruption are brought to justice in accordance with the law.
“This extradition is part of implementing the National Anti-Corruption Strategy, which sees law enforcement agencies coming together to eradicate corruption in South Africa and ensure the continued cleaning up of state-owned Entities like Eskom from corruption,” he said.
Following his extradition and processing at the OR Tambo police station, Lomas made his first appearance in the Kempton Park Magistrates’ Court.
His matter was, however, postponed September 27, after it was referred to the Palm Ridge Specialised Commercial Crimes Court for formal bail application.
His arrest comes after the NPA requested Lomas’s extradition in 2022, which was delayed while he tried to lodge a series of appeals, which were ultimately rejected.
He is accused alongside 11 other alleged co-conspirators - including two senior executives at Eskom and two other businessmen.
They were arrested in 2019 and their case is ongoing at the Gauteng High Court, Johannesburg.
The NPA's Investigating Directorate spokesperson, Henry Mamothame, indicated that Lomas was facing 65 counts of corruption linked to the R1,4 billion that was meant for the upgrade of Eskom’s Kusile power station in Mpumalanga between 2014 and 2017.
He added that after the State’s application for his extradition was opposed, the corruption matter received a boost when on January 30, 2023, the Minister of State Security in the UK signed the extradition documents which were central to Frida’'s events.
“His court appearance follows a successful extradition launched by the Investigating Directorate Against Corruption (IDAC) from the United Kingdom, wherein he was arrested by the authorities on 15 April 2021 and released on bail on 20 May 2021. In an attempt to evade extradition to South Africa, he lodged an application with the European Court of Human Rights, and it was also unsuccessful,” Mamothame said.
The Star