A former Eskom employee who allegedly manipulated tenders to benefit companies linked to people close to her has been convicted of fraud in a case that cost the power utility more than R8.5-million.
Nozipho Ntuli, 39, a former Eskom buyer, was found guilty by the Middelburg Specialised Commercial Crimes Court on Tuesday following a lengthy Hawks investigation. The court also convicted Edward George Sekatane, 46, Thulani Harries Mahlalela, 43, and Alfred Lebogang Sekatane, 62, together with three companies, of money laundering offences under the Prevention of Organised Crime Act.
Abuse of position
The Hawks said Ntuli abused her position between October 2016 and May 2019 by fraudulently awarding Eskom tenders to Phoenix Motion Enterprise, Hustle Hard Development and Itireleng Masheleng.
Phoenix Motion Enterprise received R5.38-million, Hustle Hard Development R2.23-million and Itireleng Masheleng R913 712 from Eskom.
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The transactions allegedly left the power utility R8.52 million out of pocket.
Syndicate targeted Eskom contracts
According to the Hawks, Phoenix Motion Enterprise was directed by Edward Sekatane, who was in a relationship with Ntuli.
Investigators established that Sekatane continued running the company even while he was behind bars.
The Hawks said their investigation subsequently uncovered connections between Sekatane and the other businesses which benefited from Eskom contracts.
Mahlalela was a director of Hustle Hard Development, while Alfred Sekatane was identified as Edward Sekatane’s uncle.
Ntuli was convicted of fraud, while Edward Sekatane, Mahlalela and Alfred Sekatane were convicted alongside Phoenix Motion Enterprise, Hustle Hard Development and Itireleng Masheleng of money laundering offences.
The convictions followed an investigation by the Hawks’ Secunda Serious Commercial Crime Investigation unit, working with other specialised Hawks units and the National Prosecuting Authority.
Hawks head welcomes convictions
Mpumalanga Hawks provincial head Maj-Gen Nico Gerber said the convictions demonstrated the importance of pursuing complex financial crimes involving public institutions.
READ: Ex-Eskom technician found guilty of R2.3m fraud, cleared of corruption
“This conviction demonstrates the Hawks’ commitment to investigating complex commercial crimes and holding individuals accountable when they abuse positions of trust for personal gain,” Gerber said.
“Public institutions must be protected from corruption, fraud and organised criminal activities that undermine service delivery and public confidence.”
The case has been postponed to October 19 for sentencing.
The Asset Forfeiture Unit is also expected to pursue a restraint order as authorities seek to recover proceeds allegedly generated through the scheme.
- Nozipho Ntuli, a former Eskom buyer, was convicted of fraud for manipulating tenders that cost Eskom more than R8.5 million.
- Edward George Sekatane, Thulani Harries Mahlalela, Alfred Lebogang Sekatane, and three companies were convicted of money laundering under the Prevention of Organised Crime Act.
- Ntuli fraudulently awarded tenders between October 2016 and May 2019 to Phoenix Motion Enterprise, Hustle Hard Development, and Itireleng Masheleng, which received R5.38 million, R2.23 million, and R913,712 respectively.
- Hawks investigation found that Edward Sekatane, who ran Phoenix Motion Enterprise and was in a relationship with Ntuli, maintained control of the company even from prison, with connections to the other benefiting businesses.
- The case is set for sentencing on October 19, with the Asset Forfeiture Unit expected to seek a restraint order to recover proceeds from the scheme.
