Eskom lauds conviction of former boss

By African News Agency Time of article published Jun 21, 2016

Share this article:

African News Agency

Eskom has welcomed the conviction of its former senior manager, Dawid Malherbe, who was found guilty of fraud and money laundering by the Bellville Specialised Commercial Crimes Court.

Malherbe was arrested in 2013 after Eskom alerted the Hawks of suspected irregularities in which he allegedly awarded a tender to his own company, Energy Utility Services, during his tenure as the power utility’s managing director between 2007 and 2009.

Eskom said internal investigations, as well as the reports from external auditors, found that Malherbe’s actions amounted to wasteful and fruitless expenditure on the part of Eskom. The loss Eskom endured was quantified to be in the region of R65 million.

The Asset Forfeiture Unit has so far managed to recoup about R10m through the attachment of the accused’s assets.

According to the Hawks, sentencing proceedings are scheduled for August 11 at the same court.

“The Hawks’ involvement was a result of a partnership that Eskom had entered into with the government’s corruption-fighting agency, the Special Investigating Unit in March 2011,” said Eskom.

“The three-year partnership sought to uncover any corrupt practices or conflicts of interest and identify risks for Eskom, including contract fraud and legal non- compliance.”

Eskom said this partnership helped it to ensure that it was ethical, well governed and had appropriate fraud detection and prevention measures in place.

“If corrupt activities are found by Eskom staff or contractors, appropriate action is taken with immediate effect, including criminal prosecution if it is warranted.”

Hawks

spokesperson Robert Netshiunda confirmed that Malherbe was arrested with a co-accused in 2013 after a whistle-blower alerted the Hawks.

“At the knowledge of the results (of the internal investigations), Malherbe immediately resigned,” Netshiunda said.

“The loss which Eskom endured was quantified to be in the region of R65 million. The Asset Forfeiture Unit has thus far managed to recoup approximately R10m through the attachment of the accused’s assets.”

He said Malherbe’s co-accused was granted immunity from prosecution after he opted to testify against Malherbe.

Share this article: