Friday, 15 May 2026: In April 2026, Eskom provided an update on its investigation into the diesel procurement and storage contract. Initiated by Eskom’s Group Investigations and Security (GIS) function, the investigation examined possible irregularities under tender MWP2197GX. The independent forensic firm has since released an interim report. The final report is expected in mid-June 2026.
The investigation was initiated in March 2025 following the monitoring of contract performance during operational emergencies that involved loadshedding in early 2025, as well as information received through established reporting and whistleblowing mechanisms. This reinforces the importance and effectiveness of these channels, and Eskom continues to treat all allegations of wrongdoing with the necessary seriousness and confidentiality.
The contracts under investigation relate to the supply of diesel to Eskom’s Open Cycle Gas Turbine (OCGT) power stations, which support system reliability during emergencies, particularly at peak demand and during periods of high breakdowns. Eskom also utilises diesel-fired capacity from two Independent Power Producer (IPP) stations as part of its broader operations. These IPP arrangements are not part of the current investigation or associated consequence management processes.
At this stage, the interim report has identified instances of non-adherence to Eskom processes, in both the areas of the procurement of the services and the management of the contracts.
As a result of the findings contained in the interim report, Eskom will commence with disciplinary proceedings against several employees who breached our procurement processes. We expect that more employees may be charged once the final report has been issued to Eskom.
In line with Eskom’s supplier review process, disciplinary action will be undertaken against suppliers who are found to have breached our procurement policy and processes.
“We maintain zero tolerance for corruption and any breach of Eskom’s processes. This investigation was initiated proactively by Eskom management itself, demonstrating our commitment to uncover and address wrongdoing without external prompting. Consequence management is immediate, uncompromising and non-negotiable. Those implicated, whether employees or suppliers, will be held accountable through disciplinary action and, where warranted, criminal processes. We will seek to recover every rand of financial loss, while relentlessly executing our action plans to address historical misconduct, reinforce governance and embed ethical conduct at every level. The Board’s commitment to this is absolute and will not waver,” said Mteto Nyati, Eskom Board Chairman.
“The interim report pointed to a need to hold those employees who did not follow Eskom’s processes accountable; this will be matched by action against specific suppliers, as required. The vast majority of Eskom’s employees are honest and hardworking, and we will not allow a few to tarnish the majority’s reputation. The ongoing resourcing drive to adequately capacitate the finance, internal audit and forensics functions to address key skills gaps within the business continues to attract talent to Eskom. We are applying the same level of effort to ending years of governance and accountability failings as we did to ending loadshedding, by continuously strengthening our controls as the landscape evolves,” said Eskom Group Chief Executive Dan Marokane.
Due to the suspicion of fraud and corruption, Eskom has reported this matter to the Directorate for Priority Crime Investigation (DPCI), in line with the requirements of Section 34 (4) of the Prevention and Combating of Corrupt Activities Act (PRECCA).
Controls strengthened – Full scope proactive assurance and probity reviews re-introduced
In October 2022, the central panel used to perform proactive assurance and full probity reviews on procurement transactions exceeding R500 million was discontinued on the grounds of cost effectiveness and not having identified significant findings in high value tenders reviewed over a period of time. Since then, only limited scope reviews were being undertaken by appointed audit firms, leaving the business vulnerable to potential procurement irregularities. Limited scope reviews typically only included anti bribery, fraud and anti-money laundering checks.
From late 2025 proactive assurance and full scope probity reviews have since been reinstated, retrospectively on some transactions from last year and, going forward, on all high-value tenders, making it procedurally difficult to recommend bidders who fail mandatory requirements.
It is to be noted that diesel utilisation remains closely linked to prevailing system conditions and generation performance. In periods where the system is constrained or under emergency conditions, diesel‑fired generation is deployed to support supply and maintain grid stability.
In line with improving generation performance, diesel expenditure has declined materially. For the financial year to date (1 April to 7 May 2026), expenditure is R469.24 million. In the previous financial year (1 April 2025 to 31 March 2026), diesel expenditure totalled ~R6.4 billion, well below the budgeted ~R11 billion and approximately 81% lower than the R33 billion recorded in FY2023.
This reduction reflects improved generation performance and reduced reliance on diesel‑fired generation as system stability continues to improve.
Next steps
Eskom recognises the intense public interest in this matter.
Considering the consequence management steps Eskom is taking to address identified irregularities relating to this matter, the interim nature of this report pending the final report, and the possibility of criminal prosecution, Eskom is not in a position to engage on the details or comment further at this stage, so as not to jeopardise the next stage of the process.
Updates will be communicated at an appropriate time, in line with applicable legal, governance, and regulatory requirements.
Eskom supports and encourages the reporting of any concerns or alleged wrongdoing through its established whistleblowing and reporting mechanisms and treats all such information with the necessary seriousness and confidentiality.
Eskom calls on the public to report any illegal activity affecting its operations to the Eskom Crime Line at 0800 112 722 or via WhatsApp at 081 333 3323.
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