The South African Federation of Trade Unions (Saftu) has expressed joy following a UK court ruling that dismissed a bid by former Eskom contractor Michael Lomas to avoid deportation to South Africa.
The British national is set to face serious corruption charges related to the construction of the Kusile power station, a coal-fired power plant in Mpumalanga.
His alleged corruption resulted in financial losses amounting to R745-million for Eskom.
Lomas previously served as the chairperson of Tubular Construction Projects.
Bribes and kickbacks
He is implicated in a scandal where his company allegedly secured contracts valued at R1.4-billion from Eskom through a scheme involving bribes and kickbacks.
The case has garnered significant attention as Lomas is scheduled to stand trial alongside former Eskom executives France Hlakudi and Abram Masango, as well as businessmen Antonio Jose Trindade and Hudson Kgomoeswana.
Trevor Shaku, the spokesperson for Saftu, emphasised the urgency of the case.
Shaku urged for a swift legal process to ensure that all stolen funds were recovered and the perpetrators held accountable.
He highlighted the broader implications of the scandal, noting that powerful individuals both within Eskom and the private sector are now facing legal consequences for their involvement in the corruption that led to significant cost overruns and an enormous debt burden for Eskom.
He pointed out that the initial budgets for the Medupi and Kusile power stations were R79-billion and R81-billion, respectively.
Eskom’s R500m debt
However, by 2020, Eskom found itself in debt to the tune of R500-billion, primarily due to delays and cost overruns associated with these power projects, which were originally intended to cost R160-billion combined.
These construction delays have had far-reaching consequences, contributing to widespread loadshedding and substantial financial strain on the fiscus.
Shaku said that the failure to complete the power stations on time turned them into centres of money-laundering, fraud, and corruption, exacerbating the impact on South Africa’s power supply.
He asserted that merely repaying the stolen money should not substitute for imprisonment.
“Corrupt business people and their counterparts in government should suffer both fates,” Shaku said.
