Johannesburg – The Investigating Directorate (ID) has released details of alleged fraud linked to the R2.2 billion construction of the Kusile Power Station.
The details were released a day after the accused in the matter – former SA Local Government Association (SALGA) Chief Executive Thabo Mokwena, Eskom’s former interim Chief Executive Matshela Koko, his wife, Mosima Koko, and Koko’s stepdaughters Koketso Aren and Thato Choma – briefly appeared in court.
The Middelburg Specialised Commercial Crimes Court granted Koko bail of R300 000.
Bail was set at R70 000 each for Mosima Koko, Aren, Choma, and Coetzee.
The other accused – Eskom Project Director at Kusile (most senior on-site) Hlupheka Sithole, Lawyer Johannes Coetzee and Watson Seswai – were granted bail of R300 000 each.
The ID said the accused face charges of corruption, fraud, and money laundering.
In a statement Friday, the ID said allegations are that in 2009, Eskom contracted with Alstom to undertake the C&I (Control and Instrumentation) contract at Kusile Power Station. Alstom did not perform.
Eskom engineers recommended that Siemens be appointed.
The State alleges that Group Executive Technology and Commercial Koko influenced and abused his position to have Siemens, Billfinger-Mauell, and ABB invited to bid to a closed tender.
Mauell dropped out of the tender process and ABB South Africa was eventually appointed in 2015.
ABB was awarded the C&I multimillion-rand contract.
The State alleges that it then resulted in ABB South Africa appointing a company owned by Thabo Mokwena to provide skills development and industrialisation (SDL) work to the value of R96 million contract, excluding VAT.
In 2016 four variation orders were granted to ABB South Africa, by Sithole to provide extra work not covered in the initial multi-billion-rand C&I contract. The State alleges that money flowed from the multibillion-rand contract and that this was the first attempt to launder money on behalf of Koko.
In 2015- 2017 several contracts were awarded of which four form part of this matter for Impulse International.
They were for providing Eskom and Rotek Industries with SAP work packages, specialised engineers, and managers to oversee the different interphase contractors amongst other functions.
The state further alleges that a portion of these contracts was used to butter hands.
In the court papers, it is alleged that money laundering vehicles were set up by Coetzee to siphon money from Impulse International to benefit the Koko family.
The arrest was a result of joint stakeholder engagements between the ID, Hawks, and the SIU.
“This arrest is about accountability and rule of law. We must execute the NPA’s constitutional mandate for justice – it is imperative for the country and its people that we serve without fear, favour or prejudice” says ID head Adv Andrea Johnson.
The matter returns to court on 23 March 2023.
