South Africa: Eskom Welcomes State Capture Commission Report

Inside the Medupi coal-fired power plant, South Africa (file photo).

State power utility Eskom says it has set up a project team to specifically deal with the recommendations set out in the State Capture Commission report.

On Friday, the commission released a two-part volume on the capture of the State power utility.

Eskom board chairperson, Professor Malegapuru Makgoba, said the power supplier will work with law enforcement agencies to bring those implicated in the capture of Eskom to book.

"State capture and its agents caused immense harm to Eskom over many years. We view the release of the Commission's report as an important step to ensure that more of those who undermined Eskom are brought to book, and we look forward to working with the National Prosecuting Authority to ensure that the miscreants speedily face criminal charges," Makgoba said.

In a statement, the power utility said it welcomed the commission's report and has already got to work to study it.

"Eskom has proactively set up a project team, supported by its internal and external lawyers, to ensure that the report is reviewed, understood and appropriate action is taken to address [the] recommendations made therein and to protect Eskom's interests.

"Eskom is studying the report to identify whether there are implicated individuals still in its employ and will take appropriate action required in line with its policies.

"This is in addition to the numerous criminal cases registered with the South African Police Service over the years and disciplinary action taken against its employees implicated in the irregularities," the power utility said.

Furthermore, Eskom said it has taken steps "to recover funds irregularly paid out by Eskom" to suppliers.

"In this regard, Eskom is working closely with the Special Investigating Unit and has been successful in recovering R1.1 billion from McKinsey, R1.577 billion from ABB, as well as other significant cases.

"Eskom has [also] initiated civil action to recover some of the monies lost to State capture, including R3.8 billion in damages suffered by Eskom due to unlawful action by those implicated in State capture," Eskom said.

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