Eskom has issued suspension letters to at least two more senior officials since the suspension of chief financial officer Anoj Singh, according to senior sources.
The sources told Business Day that Eskom’s head of procurement, Edwin Mabelane, and the acting commercial GM, Charles Kalima, were suspended this week over irregularities related to deals with financial advisory company Trillian and state Chinese company Dongfang.
Eskom spokesman Khulu Phasiwe said on Monday that "unfortunately we are not in a position to confirm or deny these allegations because Eskom generally does not share employer-employee contractual matters with third parties unless it is by mutual consent".
Mabelane declined to answer questions about the allegations and Kalima did not respond to text messages.
It is understood that disciplinary proceedings are under way against two more senior officials implicated in the deals, although this could not be immediately confirmed.
Business Day previously reported that Trillian sent an invoice of R30.6m directly to Singh despite Eskom’s public denials of making payments, and that Singh was suspended by Eskom’s board after its lenders threatened to recall loans if no action was taken against him.
Singh was at the centre of corruption allegations at Eskom, including arranging a R1.6bn guarantee and authorising a R660m prepayment for the Guptas to buy Optimum coal mine after the family had hosted him several times in Dubai.
The sources said this week’s disciplinary action flowed from an internal investigation by law firm Bowman Gilfillan, which recommended several suspensions related to payments of R495m made to Trillian without a contract and a R4bn contract with Dongfang to supply a new boiler at Eskom’s Duvha power station, now the subject of a legal challenge by losing bidders.
The tender was awarded to Dongfang after a last-minute assessment by Trillian even though it was R1bn more expensive than rival bids.
Trillian has denied any wrongdoing or any involvement in selecting the winning bidder.
Documents seen by Business Day suggest that Mabelane and Kalima were instrumental in ensuring the contract was awarded to Dongfang.
Trillian had worked for Eskom with global consultancy McKinsey as its local partner to draft a corporate plan for the power utility and draw up a turnaround plan.
McKinsey held discussions with Trillian to be its supplier development partner but the consultancy decided not to contract with Trillian after conducting a due diligence.
A letter from now suspended McKinsey director Vikas Sagar that Eskom should pay Trillian directly is the subject of an internal investigation by McKinsey.
The consultancy has rejected the allegation made in a report by advocate Geoff Budlender that McKinsey’s leadership was aware its arrangement with Trillian was a sham. "We refute this allegation. We take supplier development very seriously," said McKinsey spokesman Steve John. "McKinsey would only enter into a supplier development partnership that added value to our clients and developed suppliers," he said.
"We do not dispute that Trillian performed work on the master service agreement and corporate plan," said John.
"But McKinsey had no contract with Trillian and Trillian was never a suppler development partner of McKinsey’s."
Trillian said it "ascribes to industry standards of corporate governance as well as FSB [Financial Series Board] compliance regulations" and defended the "high standard of work" it delivered for Eskom.
It insisted it had "only billed for work undertaken".
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