SIU: Eskom Deliberately Created Urgency for R500 Million Security Contract

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SIU: Eskom Deliberately Created Urgency for R500 Million Security Contract
ESKOMCONTRACTSECURITY
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The Special Investigating Unit (SIU) alleges that Eskom artificially created emergencies to justify awarding a R500 million security contract to Fidelity Security Services in 2022. The SIU is investigating links between the contract and an intelligence report compiled by George Fivaz's company, which claimed Eskom stations were under threat. Former CEO Andre de Ruyter relied on this report to support his claims of maladministration and political interference at Eskom. The SIU found that several intermediary companies hired for security were unqualified and that Eskom employees may have manipulated the procurement process.

CAPE TOWN - The Special Investigating Unit says Eskom deliberately created urgency when it awarded Fidelity Security Services a R500 million contract in 2022 to protect power stations.

Former CEO, Andre de Ruyter, based much of his claims of maladministration and political interference in the running of the company on this report in the final months of his tenure. In 2023, the SIU started investigating the appointment of George Fivaz Forensic and Risk to gather intelligence for Eskom.SIU investigator Viven Govender said the investigation of the Fidelity contract around the same time led it to probe two other emergency contracts with similar hallmarks.

Govender said that in one contract, up to 90% of the work was outsourced and Eskom employees contacted intermediaries before actual service providers for quotations.

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