Ex-ABB employees arrested in Eskom corruption crackdown

Two former employees of ABB Group, together with their spouses, have been arrested for alleged corruption linked to Eskom contracts involving R2.2-billion.

“The four were arrested yesterday by the Investigating Directorate of the National Prosecuting Authority (NPA), in a joint operation with the Hawks and the South African Revenue Service, for corruption that defrauded Eskom in a contract awarded to ABB during 2015,” Eskom said in a statement on Wednesday.

“As a result of the influence of the suspects, ABB in turn irregularly appointed Impulse International as a subcontractor on a R549.6-million portion of the work,” the utility said.

“Former ABB employees Mohammed Mooidheen and Vernon Pillay stand accused of using their influence and cashing in irregular gratifications estimated at R8.6-million, which included cash and luxury vehicles, in irregularly awarding to Impulse a R549.6-million subcontract. Their spouses are also alleged to have benefited from the crime.”

The contract was for the supply of a control and instrumentation system at the Kusile power station.

The suspects have been released on bail and have been ordered to appear in court again on 14 October. Assets belonging to the accused have been seized.

“Eskom hopes this is just the beginning and that more arrests will follow on this matter, and on the more than 100 other criminal cases lodged with the law enforcement agencies over the years,” the utility said in the statement.

Irregular

It said that ABB South Africa agreed in December 2020 to pay Eskom R1.6-billion of funds it had been irregularly paid after it voluntarily disclosed collusion in 2015 with certain Eskom officials related to the Kusile contract.

NPA Investigating Directorate head Andrea Johnson said the agency is “hot on the heels” of those involved in state capture. The Eskom arrests are a “clear demonstration of collaborative work between the ID, Hawks and SAPS, and more seminal cases will be enrolled as we continue to reprioritise cases emanating from the Zondo Commission reports”, she said.  – © 2022 NewsCentral Media, with additional reporting by SANews