SA govt welcomes arrest of six accused of BEE fronting and R400 million Eskom, Sasol tender fraud

THE SOUTH African government has welcomed the arrest of six engineering firm directors accused of BEE-fronting and tender fraud to the tune of R400 million at Eskom and Sasol.

The six accused were arrested by the Hawks.

The Hawks have accused the firm of BEE fronting and of claiming to have a valid shareholder agreement. They have been charged in terms of the Broad-Based Black Economic Empowerment (B-BBEE) Act, theft, fraud and money laundering.

They are also accused of misrepresenting themselves to the state power utility Eskom and at Sasol, by submitting fraudulent and falsified financial records to secure tenders for the supply of goods.

Government spokesperson Nomonde Mnukwa, who is also the acting director-general for the Government Communication Information System (GCIS), said they were pleased by the arrests.

"Government welcomes the Hawks arrest of six suspects for allegedly perpetrating a fraud scheme related to tenders at Eskom and Sasol in 2017, to the tune of R400 million.

“Crime and corruption, whether large or small, remains one of the greatest challenges facing our country, holding back economic growth and development. If you see something, say something, report corruption by dialling the National Anti-Corruption Hotline on 0800 701 701,” said Mnukwa.

The alleged rot at the engineering firm was reportedly exposed in September last year by a former director, Baleseng Zinyana, who took the firm to court after they refused to show her the company’s accounting records to conduct an audit.

Another former director, Jack Madzivhandila, who was fired in 2019, reported the firm to the BBBEE Commission for alleged questionable practices.

The accused are expected back in court on November 29.