Eskom has completed the independent legal assessment, diesel reconciliation and verification processes arising from its investigation into diesel procurement and storage contracts, which found no evidence that diesel paid for by Eskom is missing.
"The independent processes found no evidence that diesel paid for by Eskom is missing. The legal assessment did not sustain allegations that the procurement award process under Tender MWP2197GX was compromised.
"The investigation did, however, confirm instances of non-adherence to Eskom processes concerning payments made to certain suppliers. The substantiated findings relate principally to payments outside contractual terms, and emergency approvals that did not comply with Eskom's Delegation of Authority," the power utility said in a statement.
Eskom initiated the investigation in March 2025 following the monitoring of contract performance during operational emergencies that involved load shedding in early 2025, together with information received through established reporting and whistleblowing mechanisms. Eskom appointed independent forensic investigators and commissioned separate legal, reconciliation and verification reviews.
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Eskom said it accepts the findings and is implementing corrective measures as required.
"This statement follows Eskom's update of 31 July 2026, when the company advised that the investigation findings were undergoing internal corporate governance, legal review and quality assurance processes to ensure that any action met the required evidentiary and procedural standards."
Tender MWP2197GX was issued by Eskom's Generation Division in late 2023 for the supply, delivery, storage and handling of diesel and related fuels for Eskom's Open Cycle Gas Turbine (OCGT) power stations. The contracts were structured on a five-year, as-and-when-required basis and covered fuel sourcing, transportation, storage, handling and bulk inventory management.
The contracts were awarded in late November 2024, and Eskom had at the time achieved 310 consecutive days without load shedding, reflecting the benefits of the Generation Recovery Plan.
Consistent with Eskom's 2024/25 Summer Outlook, the expectation at the time was that load shedding would not be required and that any residual risk would generally be limited to Stage 1 or, in a worst-case scenario, Stage 2.
"From January to March 2025, a combination of extensive generation unit breakdowns, delayed unit returns from maintenance and constrained pumped-storage reserves placed a constrained power system under severe pressure. These conditions significantly increased reliance on Open Cycle Gas Turbines and strategic reserves to maintain security of supply and limit the severity and duration of load shedding."
Eskom's Group Chief Executive, Dan Marokane, said the period between January and March 2025 placed significant demands on the power system and required rapid operational responses and difficult decisions by employees and executives to maintain security of supply and protect grid stability.
"Independent verification processes have confirmed that all diesel paid for was delivered and/or accounted for within Eskom's supply chain or contractual terms. While the investigation identified procedural and governance shortcomings, Eskom began implementing corrective measures as these issues were identified, including strengthening probity and oversight controls that were suspended in October 2022, enhancing contract management processes, and initiating accountability measures where warranted," Marokane explained.
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The power utility said it will continue to act on the investigation's findings, including implementing consequence management where non-compliance with governance processes has been identified.
"Eskom is addressing the substantiated findings through consequence management and strengthening its controls to reduce the risk of recurrence. The power system is now in a materially different position from the conditions experienced in early 2025. Improved generation performance and reduced dependence on diesel-fired generation have enabled OCGTs to return largely to their intended role as strategic peaking and reserve resources."
The utility said it will continue to build a resilient and sustainable business capable of reliably serving South Africa, while safeguarding public resources and holding employees, suppliers and other parties accountable where substantiated evidence supports action.
