A proclamation of the Special Investigating Unit's probe into Eskom and Transnet has been published in the government gazette. Picture: ISTOCK
A proclamation of the Special Investigating Unit's probe into Eskom and Transnet has been published in the government gazette. Picture: ISTOCK

Eskom fully supports President Cyril Ramaphosa’s decision to order an investigation by the Special Investigating Unit (SIU) into its contracts.

The probe dovetails with the bid by the utility’s new board and management to clean up the corruption that ate away at the heart of the company.

The SIU, as with a commission of inquiry, has extensive powers to subpoena documents and witnesses, which internal forensic investigators do not.

The Hawks are also investigating Eskom.

A proclamation of the SIU investigation into Eskom and Transnet was published in Friday’s government gazette. It said there was some prospect of the losses suffered being recovered. This could be by way of civil proceedings instituted by the SIU itself.

The probes will once again put the spotlight on two former executives involved in the allegations at Eskom: former head of generation Matshela Koko and former chief financial officer Anoj Singh.

"We welcome the SIU investigation," Eskom spokesman Khulu Phasiwe said.

Transnet spokeswoman Neo Manganye said that Transnet also welcomed the investigation, adding that it would "fully co-operate" with authorities.

DA spokeswoman for public enterprises Natasha Mazzone welcomed the investigation, saying it was "long overdue", given the damning evidence that had surfaced regarding corruption and financial mismanagement at these two entities, linked to politically connected individuals.

The president has also issued a proclamation for an investigation into the affairs of the correctional services department.

According to the proclamation on Eskom and Transnet, the issues to be investigated include the appointment of global consultancy firm McKinsey and Gupta-linked companies Trillian and Regiments Capital to render services to the two state-owned companies.

Not specifically mentioned but likely to fall within the scope of the SIU probe are contracts between software company SAP and Eskom and Transnet, which allegedly involved kickbacks for the Guptas.

ensorl@businesslive.co.za

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