Fin24

Eskom to work with SIU to weed out graft

2011-03-23 11:19

Johannesburg - Eskom is partnering with the Special Investigating Unit (SIU) to fight corruption in its ranks, the parastatal said on Wednesday.

"Our partnership with the SIU will help us to ... ensure that Eskom is ethical, well governed and has appropriate fraud detection and prevention measures in place," said Eskom CEO Brian Dames.

During the three-year partnership the SIU, the government's corruption fighting agency, will deploy a team of investigators to check all Eskom divisions.

"If any loopholes are identified, they will be closed. If corrupt activities are found, by Eskom staff or contractors, we will take appropriate action, including criminal prosecution if it is warranted," said Dames.

The parties are finalising the agreement and an application for a proclamation by President Jacob Zuma is in progress. Once gazetted, it will confer special investigative powers on the SIU.

The investigations will focus on Eskom's procurement contracts, as the power utility spends R90bn annually on purchasing goods and services.

The SIU investigation will "seek to uncover any corrupt practices or conflicts of interest, and will identify risks for Eskom, including contract fraud and legal non-compliance".

"This is going to strengthen our internal audit function, and especially our forensic team.

"It is going to strengthen the organisation as a whole," said Dames.