Asset Forfeiture Unit to seize R33m in assets in Eskom water-trucking corruption case

Armed with two forfeiture orders totalling R33-million, law enforcement officers are expected to start seizing assets from controversial former Eskom executive France Hlakudi, among others, to recoup losses from an allegedly corrupt R400-million Eskom tender related to the Kusile Power Station in Mpumalanga.

Last week, the Asset Forfeiture Unit (AFU) obtained the orders from the Pretoria High Court as part of its investigation into Eskom’s allegedly unlawful tender with the Tamukelo Business Enterprise.

According to Lumka Mahanjana, the National Prosecuting Authority’s (NPA) Gauteng spokesperson, Hlakudi is one of the people involved in the R400-million fraud.

It is not the first time Hlakudi has been implicated in Eskom fraud. He is one of several people accused of fraud, corruption and money laundering in connection with an allegedly fraudulent R745-million contract involving the Kusile Power Station.

He was arrested in that case in June and December 2019, along with former Eskom group executive for group capital Abram Masango, for fraud, corruption and other offences. The charges stem partly from the alleged R30-million kickback Tubular Construction CEO Tony Trindade and the company’s former chairperson, Mike Lomas, funnelled to Masango and Hlakudi. 

The R745-million contract exposed Eskom to R1.4-billion in costs, according to authorities.

Read more in Daily Maverick: Ex-Eskom bosses, Tubular Construction executives charged over R30m Kusile kickbacks saga

Explaining the alleged maladministration and corruption in the most recent case, Mahanjana said Eskom appointed a vendor, Tamukelo Business Enterprises, to provide water-trucking services to the Kusile project site between 15 June 2009 and November 2020.

Tamukelo had then made various payments to current and former Eskom executives. Mahanjana added that the findings implicated Tamukelo’s members and representatives.

In addition to Hlakudi’s involvement, the NPA said former Eskom contracts manager Duduzile Babalwa Moyo, “who was responsible and/or involved in the appointment, managing and approving payments to Tamukelo, received payments or benefits of over R24-million from Tamukelo. Moyo used a convoluted structure of entities, as well as members of her family, to receive and utilise funds received from Tamukelo.”

Others who allegedly benefited include: Siphiwe Musa Wandile Mkhwanazi, who was previously employed by Tamukelo as an operations manager and was the sole member of Phuwanda Trading CC, a subcontractor to Tamukelo; Lloyds Muzi Sambo, Tamukelo COO; Mukelo Pertunia Sambo, founder of Tamukelo; Zenzile Carol Sanderson, Sambo’s wife and former member of Tamukelo; and Ntjie Kenneth Segooa, a former Eskom employee.

According to the two forfeiture orders, the following assets may be seized by the state from the companies and individuals allegedly involved:

• A property in the luxury Silver Lakes Estate in Pretoria;
• A Mercedes-Benz Viano;
• A Chevrolet Utility;
• Casambo Lodge on a farm near Mbombela, and another property next to it;
• Properties in Mbombela;
• A Subaru Impreza;
• A VW Polo Vivo Blue Line;
• A Yamaha Golf Car; and
• A Yamaha Raptor 90 quad bike.

According to Mahanjana, the next step will be to sell the properties at a public auction and return the proceeds to Eskom. Criminal investigations are still ongoing, she added.

Read more in Daily Maverick: Hawks arrest Eskom manager in connection with R1m fraud at power utility

Mahanjana reiterated that the forfeiture orders are part of the AFU’s asset recovery strategy, which seeks to reclaim the proceeds of corruption for the state.

“The overall National Anti-Corruption Strategy by law enforcement agencies is to strengthen the fight against corruption by pursuing both civil and criminal processes to ensure that impunity is no longer a given,” she added. DM