Public Interest SA Calls for Full Accountability Over Eskom’s R21-Billion Diesel Tender Allegations

Johannesburg, South Africa. Sunday, 10 May 2026 - Public Interest SA notes with grave concern the revelations contained in the recent investigative report by amaBhungane concerning Eskom’s controversial R21-billion diesel procurement contract.

The allegations, if proven true, point not merely to administrative irregularities, but to the possible persistence of the very governance failures, procurement abuses, and accountability deficits that characterised the era of State Capture.

Of particular concern are allegations relating to:

• the awarding of multi-billion-rand contracts to entities with questionable operational capacity and limited demonstrable experience;

• the apparent bending or relaxation of tender requirements after contracts had already been awarded;

• extraordinary prepayments allegedly amounting to nearly R3-billion;

• inconsistent application of procurement rules and payment terms;

• possible failures in due diligence processes; and

• Eskom’s exposure to financial and operational risks during a period of acute national energy vulnerability.

The reported allegations concerning advance payments are especially alarming in light of Eskom’s history with improper prepayment arrangements during the State Capture years. South Africans will recall that similar justifications of “urgency” and “operational necessity” were previously invoked to rationalise transactions that later became central to findings before the Judicial Commission of Inquiry into State Capture.

Public Interest SA is deeply troubled by indications that emergency procurement conditions may once again have been used to weaken normal governance safeguards and oversight controls.

While the tender under scrutiny was reportedly awarded before the appointment of the current Eskom Group Chief Executive and prior to the establishment of Eskom’s Group Investigations and Security Department, the responsibility ultimately rests with the accounting authority and executive leadership of Eskom to ensure that the matter is investigated thoroughly, independently, and without fear or favour.

We therefore welcome Eskom’s confirmation that a forensic investigation is nearing completion and express confidence that the current leadership will ensure that the matter is handled expeditiously, transparently, and in the broader public interest. Should wrongdoing be established, decisive accountability must follow, irrespective of the status or influence of those implicated.

The Constitution requires that public procurement systems be fair, equitable, transparent, competitive, and cost-effective. These are not optional principles to be relaxed under pressure; they are foundational safeguards designed precisely to protect public institutions during times of crisis and vulnerability.

Equally concerning is the broader implication that intermediary entities with limited demonstrable operational capability may continue to benefit disproportionately from strategic state procurement arrangements while exposing the public purse to unacceptable risks.

While enterprise development remains a cornerstone of South Africa’s broad-based economic empowerment framework and must continue to be meaningfully advanced, prudent risk assessment and mitigation can never be subordinated to the imperative of economic inclusion.

Public Interest SA further calls on government to urgently reconsider Eskom’s longstanding application for a wholesale fuel licence. Reports that the Department of Mineral and Petroleum Resources has declined to grant Eskom such a licence raise serious policy and operational concerns.

Granting Eskom a wholesale licence would enable the utility to procure diesel directly from importers at significantly lower prices, potentially reducing procurement costs, minimising dependence on intermediaries, and strengthening energy security during periods of constrained generation capacity. In the context of South Africa’s ongoing electricity challenges and Eskom’s financial pressures, government must prioritise measures that enhance efficiency, transparency, and value for money.

We therefore call for:

1. The immediate public release, subject only to legitimate legal limitations, of the findings of Eskom’s forensic investigation into the diesel procurement contracts;

2. Full parliamentary oversight hearings into the procurement process, supplier selection, payment deviations, and contract management practices associated with tender MWP2197GX;

3. The publication of all material contracts, deviations, due diligence reports, and payment approvals associated with the tender;

4. The involvement of law enforcement and prosecutorial authorities should evidence of criminal conduct emerge; and

5. A comprehensive review of emergency procurement protocols across all state-owned enterprises to prevent the recurrence of governance failures under the guise of operational urgency.

South Africa cannot afford a situation where the hard lessons of State Capture are forgotten while public institutions remain vulnerable to renewed procurement abuse.

Eskom occupies a strategic position in the country’s economic and national security architecture. The integrity of its procurement systems is therefore not merely a commercial issue, but a matter of profound public interest and democratic accountability.

Public Interest SA further commends the role of investigative journalism and whistleblowers in advancing transparency and exposing matters of public concern. In a constitutional democracy, accountability depends not only on formal oversight institutions, but also on a vigilant civil society and a free press willing to scrutinise power without fear or favour.

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Issued by: Public Interest SA