The restrictions were imposed between February 2023 and March 31, 2026, following investigations into supplier misconduct dating back to 2015. Eskom said most of the cases originated between 2016 and 2022.
The sanctions were implemented through Eskom’s Supplier Review Committee, which is responsible for assessing misconduct cases and determining appropriate penalties.
Eskom Group Chief Executive Dan Marokane said the utility is intensifying efforts to restore integrity within its procurement processes. “Fraud, corruption, procurement irregularities and supplier misconduct have affected public confidence and highlighted the need for decisive, transparent and sustainable consequence management across Eskom’s supply chain,” Marokane said.
Marokane said Eskom now aims to finalise newly referred supplier disciplinary matters within 90 days. “The progress achieved to date demonstrates Eskom’s determination to confront fraud and corruption in a practical and measurable way,” Marokane said.
Marokane said the utility is reducing case backlogs, accelerating investigations and enforcing meaningful consequences against companies found guilty of misconduct. “Unethical conduct has no place in Eskom’s supply chain, and accountability is central to restoring trust, integrity and good governance,” Marokane said.
The utility also responded to allegations by the Association of Private Security Owners South Africa (TAPSOSA), which claimed that 26 black-owned companies were referred to the National Treasury without due process.
Eskom rejected the allegation, saying all referrals followed established governance procedures and supplier disciplinary processes.
According to Eskom, suppliers were restricted only after misconduct investigations and after being given opportunities to respond to allegations.
Eskom said the cases involved serious offences including fraud, corruption, collusion, misrepresentation and other integrity-related breaches.
The utility also denied claims that any companies were targeted because they acted as whistleblowers.
Eskom further stated that TAPSOSA was not directly involved in the disciplinary matters concerning the affected suppliers and questioned the basis on which the organisation claimed to represent them.
As part of the broader accountability process, Eskom has referred a number of restricted suppliers to National Treasury.
As of August 20, National Treasury had listed 35 companies and 45 directors or owners connected to those firms on its database of restricted suppliers.
Companies placed on the database are prohibited from doing business with state institutions for the duration of the restriction period.
Eskom said the measures form part of a wider effort to strengthen procurement controls, improve governance standards and ensure that supplier misconduct attracts consequences beyond the utility itself.
The utility added that its supplier review framework is aligned with National Treasury regulations and forms part of broader initiatives aimed at combating corruption and protecting public resources.
–ChannelAfrica–
