Menu
 
 

South Africa's Ramaphosa orders probe into state firms Eskom and Transnet

Featured

South African President Cyril Ramaphosa South African President Cyril Ramaphosa

South African President Cyril Ramaphosa has ordered the country’s Special Investigating Unit (SIU) to probe allegations of maladministration at state run-power utility Eskom and logistics group Transnet, the government said on Friday.

Ramaphosa, who replaced former president Jacob Zuma in February, has made the fight against corruption a key plank of his administration as he seeks to restore investor confidence after the scandal-plagued Zuma era.

The announcement of the probe was published in the government gazette.

The SIU, which investigates malpractice in state institutions, state assets and public money, will investigate among other things, “unauthorised, irregular or fruitless and wasteful expenditure” incurred by Eskom and Transnet.

Eskom has been embroiled in allegations of corruption relating to a 1.6 billion rand ($130 million) contract that global consultancy McKinsey worked on with Trillian, a local company that was then controlled by Gupta family who are accused of using their access to Zuma to win state contracts.

Zuma and the Guptas have denied any wrongdoing

Transnet, which is also state-owned, has been investigating irregularities in the awarding of a 54 billion rand ($5 billion) contract to acquire locomotives in 2014.

Eskom spokesman Khulu Phasiwe said, “This matter has been a long time coming and we are happy that the SIU is starting this process.”

Transnet was not immediately available for comment.

 


 

Source

REUTERS

 

back to top

Industries

About us

Follow us

Follow us @BusinessNewsCT

BusinessNewsCT Verizon cuts 10 400 jobs in restructuring https://t.co/YrbCs1RHpz https://t.co/fUARqfaZe0
BusinessNewsCT Two Cape Town desalination plants go offline https://t.co/fCP75ZWhQ6 https://t.co/uJthW0nklh
BusinessNewsCT This is the average salary in South Africa right now https://t.co/kkUSKGXuCK https://t.co/PdUJj15vW2