Former Eskom CEO Matshela Koko arrested for alleged corruption

Former Eskom group executive Matshela Koko has been arrested on charges of corruption.

According to the publication, Koko was nabbed – alongside his wife, Mosima, and stepdaughter, Koketso Choma – in connection to a multibillion-rand contract Eskom entered into with Swiss engineering company Asea Brown Boveri (ABB).

ABB, in 2015, was awarded a R2.2-billion control and instrumentation contract for Eskom’s Kusile Power Station located in Mpumalanga.

In turn, ABB irregularly awarded a R549.6 million sub-contract to Impulse International, a company which was partially owned by Choma.

It was previously reportedly that Koko had allegedly promised ABB more contracts to the value of R6.5-billion for work at other power plants if the company sub-contracted Impulse.

Choma – who became a shareholder of Impulse after ABB subcontracted the company – is alleged to have received R30 million from the deal, some of which then flowed to Mosima Koko.

More arrests

The Investigating Directorate (ID) arrested four people in connection to the ABB-Impulse contract in July this year.

Former ABB employees, Muhammed Mooidheen and Vernon Pillay, were accused of using their influence and cashing in on irregular gratifications estimated at R8.6 million, which included cash and luxury vehicles, for awarding the R549.6 million contract to Impulse.

In addition, their spouses were also alleged to have benefited from the contract.

All four suspects’ assets were seized by the Asset Forfeiture Unit (AFU) and they are currently out on bail.

Eight people are expected to appear at the Middleburg Magistrates’ Court on Thursday, on charges of fraud, corruption, and money laundering

Repayment

ABB was among four other contractors named by Eskom to have benefited from overpayments to work on Kusile.

In December 2020, the company reached an agreement with Eskom and the Specialised Investigating Unit (SIU) to repay R1.5 billion back for the overpayment.

The settlement amount was made up of:

Irregular variation orders to the amount of R800 million.
Costs associated with the irregular award of the contract due to collusion with certain Eskom officials is R250 million.
Interest on the money that was paid over irregularly to ABB of R380 million.
A profit element that accrued to ABB of R160 million.
State Capture

The Judicial Commission of Inquiry into State Capture, which was chaired by Chief Justice Raymond Zondo, found that Koko was an integral part of the Gupta family’s capture of Eskom.

In the State Capture report, Zondo recommended that Koko should be criminally investigated for a raft of state capture-related crimes, including the ABB deal and the Guptas’ controversial Tegeta deal.