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POWER CRISIS

De Ruyter: Gordhan and national security adviser knew about top politicians’ links to Eskom rent-seeking

Public Enterprises Minister Pravin Gordhan emerges as a scared and immobilised man in André de Ruyter’s tell-all memoir.
De Ruyter: Gordhan and national security adviser knew about top politicians’ links to Eskom rent-seeking Illustrative image | Sources: Public Enterprises Minister Pravin Gordhan. (Photo: Waldo Swiegers / Bloomberg via Getty Images) | Former Eskom CEO André de Ruyter. (Photo: Gallo Images / Phil Magakoe) | Headquarters of Eskom, Megawatt Park, northern Johannesburg. (Photo: Scott Smith / eNCA)

As Public Enterprises Minister Pravin Gordhan is due to appear before Parliament to answer questions about corruption at Eskom, former Eskom boss André de Ruyter has set the cat among the pigeons.  

On Page 282 of his book, Truth to Power: My Three Years Inside Eskom, he says both Gordhan and the national security adviser, Sydney Mufamadi, knew that two high-ranking politicians had links to cartels that extract more than R1-billion from Eskom every month.   

“In the vacant office of the Eskom chairman, I told Gordhan and Mufamadi what the investigators had unearthed, but paused before dropping the biggest bombshell — the fact that two high-ranking politicians had been implicated,” he writes. 

“‘Can I name them?’ I asked Gordhan, accompanied by one of his advisers. The minister indicated I should go ahead.

“I expected him to be shocked, but instead his reaction surprised me. Gordhan looked over at Mufamadi and said, ‘Well, I guess it was inevitable that it would come out.’ They had known or suspected all along,” writes De Ruyter. 

Earlier this month, De Ruyter calculated that rent extraction, corruption, and procurement patronage were still costing Eskom R1-billion a month, even though the high State Capture period is widely judged to be behind the utility. His analysis suggests that it hasn’t ended but has multiplied exponentially. In the book, released this week, he details the funds lost to coal shrinkage (where expensive coal is swapped for discarded coal), procurement corruption, maintenance contracts and fuel oil theft. 

Read the book extract: André de Ruyter’s Truth to Power The end of days

De Ruyter initiated a private investigation when scores of cases lodged with the police went nowhere. He writes that as a result, the National Prosecuting Authority and the police have started investigations, some charges have been laid and certain cases are now before the courts. (See Kevin Bloom’s report here and Vincent Cruywagen’s latest report here.) 

Gordhan emerges throughout the book as a moral but now worn-out minister. In one scene, De Ruyter visits Gordhan at his home to brief him on the corruption and sabotage that he calculates is responsible for between one and two stages of load shedding. Gordhan is so nervous that he takes away De Ruyter’s phone and puts it near a television that he puts on high volume — as if he fears his home is bugged.  

A frayed relationship

Either fear or political loyalty immobilises him from acting to secure greater energy security through political cover for Eskom’s transition and reform. A significant theme of De Ruyter’s book is how ANC politics is consistently ranked above national concerns in the management of Eskom and broader energy policy. While the two men initially enjoyed a common agenda to reform Eskom, that relationship had frayed by the end of De Ruyter’s tenure earlier this year. 

“He told me I should listen more and speak less. I was quite taken aback,” writes De Ruyter. 

When De Ruyter’s hardball interview with journalist Annika Larsen aired on e.tv, first revealing the existence of several cartels looting Eskom, Gordhan hit back. He said De Ruyter had spent time swanning about overseas rather than walking the Eskom power plants. The former CEO’s book is a compendium of power plant visits. He witnesses a wasteland of breakdowns caused by incompetence or sabotage.  

This week, South Africa surpassed the total load shedding recorded for all of 2022, and it’s not even halfway through the year. There have been more Stage 6 power cuts in the first 5½ months of 2023 than in any other complete year. The country is buckling under the weight. On Thursday, Eskom will brief the government on its winter outlook.  

On Tuesday, Eskom said: “The risk of a national blackout, while inherent to the operation of an extensive power system, has an extremely low likelihood of materialising, given the implementation of several control measures, including load shedding.” 

Acting CEO Calib Cassim said he was not losing sleep in fear of a grid collapse. DM 

André de Ruyter’s Truth to Power: My Three Years Inside Eskom, Penguin, Random House, is on sale now.

Comments

David Walker May 17, 2023, 11:40 AM

The Western Cape is working steadily towards energy independence. I just don't know if it will happen quickly enough. The rest of the country seems to be moving rapidly downhill. The Western Cape needs to take over the running of everything it can or provide some alternative. I am just very grateful to live in a part of South Africa that is largely liberated from ANC misrule.

Neil Parker May 17, 2023, 11:48 AM

Pravin Gordhan deserves a better "report card". He supported De Ruyter against the absolutely ridiculous allegations of "sabotage" from Gwede Mantashe. And we all owe him a huge debt of gratitude for his exposure of "State Capture". The problem with good men (including de Ruyter) doing their job in South Africa is that they are left isolated and alone - there is not enough public support or appreciation for the risks (even to their lives) that they have taken. As a first target we need to blow out of the water (utterly and completely) the spurious charges made by the ANC / Vavi and co against de Ruyter. First they claimed that he did not report corruption. When that lie was exposed , they resorted to "defamation". If the first claim is patently false, the second must be dismissed as completely frivolous by our courts and we must initiate legal action to that effect.

Jose.correia May 17, 2023, 02:36 PM

This is where in the USA there would be counter suing of these louts. For AdR to just be found not guilt is not good enough as they will resort to finding another sphere to attach. They need to be counter sued to weed them out the system.

rmrobinson May 18, 2023, 10:41 PM

Really? You think this even this his recent little tantrum about AdR?

Slightly Irritated May 17, 2023, 01:13 PM

And Gordham says he has never seen the security report, now who do I believe?

Slightly Irritated May 17, 2023, 02:23 PM

Just shows us how pathetic Ramapussas leadership is. No accountability seems to be the ANCs motto.

Fernando Moreira May 17, 2023, 02:26 PM

Watching Pravin waffling on about Eskom and his morals is like pulling teeth. Here is a man who asked the nation to join the DOTS , when its done for him ,he spends his time trying to discredit De Ruyter and not conentrate on the most glaring corruption in the world in front of him !! Backing the wrong ideology has very serious consequences for our nation !!

Rae Earl May 17, 2023, 02:29 PM

On Radio 702 today Gordhan spent some time rubbishing de Ruyter. Why? Does the truth hurt or is he trying to uphold his end in a cabinet which appears to be in disarray with the blame game and finger pointing exercises now well underway. They saw fit to retain de Ruyter for 3 years under impossible conditions without giving him assistance when he asked for it. It took them all that time to discover he was incompetent? What absolute bullshit. Since he has left the load shedding has risen to an almost permanent Stage 6 as against the Stage 4 under his watch. Shame on the whole ANC and especially the ministers responsible for this mess.

David Crossley May 17, 2023, 02:37 PM

Andre de Ruyter is undoubtedly a hero in my eyes - it takes immense courage to write a book dealing with the trials and tribulations he has faced during his tenure as CEO of Eskom. That Malema can even suggest that Koko and sundry corrupt ex CEO’s should come back to run Eskom is mendacious in the extreme and shows just how calamitous a South Africa run jointly by the EFF and the ANC would be. Whilst Malema is seen in some circles as an astute politician, his uttering soften border on complete stupidity and fabrication.

Matsobane Monama May 17, 2023, 08:55 PM

Paradise gone wrong. Leaving is not an option, we will fix it.

rmrobinson May 18, 2023, 10:42 PM

How?

hartpgf May 17, 2023, 07:01 PM

Ramapussie, Gwede, Gordham, Mabuza, etc etc all know who and how Eskom is being stripped. If they profess that they do not know then they are blatant liars. They have no conscience, no integrity, but lots of money. They should all resign (ha ha )as the only honourable thing to do.

donnahorn May 18, 2023, 06:47 AM

Has anyone calculated the number of businesses that have collapsed as a result of energy outages and the consequences of that on unemployment and tax revenue?

Alex Wood May 19, 2023, 10:48 AM

Well done de Ruiter an honest brave man with intergrity and guts! How much we need people with his character now to govern our country properly!, but this will never happen with the ANC in power, The hands of those who know and can help are tied with ropes of greed, power and blindness of truth!!