Erstwhile Eskom executive Matshela Koko has dropped a bombshell at the Pretoria High Court, accusing the state-owned power utility of accepting a staggering gratification of R450-million.
The jaw-dropping revelations are contained in an affidavit Koko has filed with the court in his fight against the Special Investigating Unit (SIU),
Eskom and multinational ABB.
The three parties went to court, seeking to nullify the controversial contract for work at Kusile power station that ABB did for Eskom and replace it with a new one.
Koko jumped onto the matter as an intervening party and charged at ABB for allegedly gifting Eskom R450-million.
According to Koko, the SIU, Eskom and ABB must explain to the court what the R450-million paid to Eskom was for.
His reasoning is based on ABB’s own analysis of the damages owed to Eskom from the control and instrumentation contract and variation order.
In December 2020, the SIU and Eskom entered into a civil settlement with ABB, which saw ABB pay the power utility an amount of R1.5-billion. However, two years
later, ABB did its own analysis, which revealed that the company had in fact been overcharged by R450-million but never claimed back the money.
“It is crucial to note that the actual amount of unlawful gains or inflated prices totals R1.05-billion. As part of the settlement agreement with [Eskom], [ABB] agreed to pay an amount exceeding their damages analysis by approximately R450-million,” wrote Koko.
“The settlement exceeded ABB’s analysis of damages attributable to overpricing by approximately R450-million. Therefore, it can be concluded that ABB provided this additional amount to
Eskom as part of the settlement. This amount signifies nothing other than the gratification provided by [ABB] to [Eskom].”
Koko argued that he strongly believed a state-owned entity was duty-bound to tell the court why it accepted a gratification from “a company with a history of bribing state officials”.
Koko continued attacking, saying that it would send shock waves across South Africa if a respected institution such as the court were to approve of this “questionable transaction”.
Koko believes the countryshould not tolerate ABB’s history of financial misconduct in nations like Nigeria, Angola, Kazakhstan, Iraq and Mexico.
“Eskom is seeking the honourable court’s approval to benefit from the R450-million gratuity from ABB.
“Accepting the gratification of a R450-million gift from a company known for paying bribes to public officials raises significant ethical and legal concerns for a state body. It creates the perception that Eskom is condoning or participating in corrupt practices, undermining its integrity and credibility.”
If Eskom is not stopped from accepting the R450-million, Koko added, whatever impartiality and independence the public company had will be gone. Furthermore, allowing a public company to get away with accepting a gratification will tarnish the public’s perception of public institutions, including the government.
“Therefore, the court’s April 5, 2024, orders, which approved the settlement agreement between Eskom and ABB, should be revoked,” Koko stated.
Koko’s beef with ABB and South African public entities is multi-layered; he is involved in another lawsuit against the company and the National Prosecuting Authority (NPA).
In that matter, he is seeking to get the alternative dispute resolution settlement of R2.5-billion between ABB and NPA’s Independent Directorate in December 2022 set aside.
According to him, that settlement was also illegal and unconstitutional, and it prejudiced him in favour of ABB, which escaped prosecution after paying the R2.5-billion. Koko declared war against these parties after his corruption case was struck off the roll when he appeared in the Middleburg Specialised Commercial Crimes Court last year. He was charged together with other Eskom officials after allegations that he solicited bribes from ABB which received lucrative contracts at Eskom’s Kusile Power Station.
The NPA had struck a deal with ABB’s officials to turn into state witness against Koko. But Koko regained his freedom after the court ruled that there was unreasonable delay on the side of the state to proceed with the trial.
