101 Eskom Suppliers Restricted for Periods of up to 10 Years

As part of Eskom’s ongoing strategy to deliver governance and control improvements in the fight against crime, fraud and corruption, from February 2023 to 31 March 2026, Eskom’s supplier disciplinary process resulted in the restriction of 101 suppliers, including implicated directors and owners, from doing business with Eskom for up to 10 years. These restrictions relate to cases from 2015 until 31 March 2026, with the majority of cases stemming from the 2016 to 2022 timeframe.

The restrictions followed due process and consideration by Eskom’s Supplier Review Committee, which assesses supplier misconduct matters and determines appropriate sanctions and/or restrictions, up to a maximum of 10 years, based on the available evidence and applicable policy and governance requirements.

“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, and Eskom now aims to process and resolve newly referred supplier discipline cases within 90 days,” said Dan Marokane, Eskom’s Group Chief Executive.

“The progress achieved to date demonstrates Eskom’s determination to confront fraud and corruption in a practical and measurable way. By reducing backlogs, accelerating the resolution of new cases and ensuring that supplier misconduct attracts fair, transparent and meaningful consequences based on the appropriate legal thoroughness, Eskom is reinforcing a clear message that unethical conduct has no place in its supply chain, and accountability is central to restoring trust, integrity and good governance,” concluded Marokane.

The Association of Private Security Owners (TAPSOSA) allegations

Eskom notes the recent allegation by TAPSOSA that 26 black-owned companies, which formed part of the 101 suppliers restricted, had been referred to the National Treasury without due process. This is denied with the evidence that Eskom can confirm the referrals followed Eskom’s internal governance and supplier discipline processes, which are applied objectively and consistently and are based on assessed misconduct and available evidence.

Eskom further notes that TAPSOSA is not a party to the supplier discipline matters involving the 26 restricted suppliers and Eskom can confirm that of the 53 referrals for restriction made to National Treasury, only one supplier provides security-related services.

Eskom is therefore unable to confirm the basis on which TAPSOSA purports to act on behalf of these 26 restricted suppliers, particularly where the affected suppliers and/or their legal representatives were afforded an opportunity to make representations during the supplier disciplinary process.

All suppliers were afforded an opportunity to respond to the allegations before decisions were taken. These referrals related to serious supplier misconduct, including fraud, corruption, misrepresentation, collusion or other integrity-related breaches. Eskom did not refer suppliers to the National Treasury for ordinary operational or contractual performance issues, such as isolated Service Level Agreement (SLA) failures. Eskom also denies claims that the companies were targeted because they acted as whistleblowers.

Supplier Discipline Policy and Supplier Review Process

A central pillar of Eskom’s strategy is its formal Supplier Review Process, which is aligned with National Treasury PFMA SCM Instruction No. 3 of 2021/22. The framework provides a structured and procedurally fair mechanism for initiating, considering and adjudicating supplier misconduct matters. It also complements Eskom’s broader procurement integrity measures, including the Supplier Integrity Pact, which requires suppliers to uphold ethical conduct and refrain from dishonest, fraudulent, corrupt or anti-competitive behaviour throughout the procurement lifecycle.

Eskom has intensified its efforts to strengthen governance, reinforce procurement integrity and hold wrongdoers accountable. Eskom’s approach is focused not only on identifying and investigating allegations of misconduct but on ensuring that credible findings are translated into fair, defensible and meaningful disciplinary action.

Eskom’s consequence management efforts also extend beyond its own supplier database. Paragraph 6.5 of PFMA SCM Instruction No. 3 of 2021/22 empowers the National Treasury to record the details of suppliers and their directors, who have been restricted by state-owned entities, on the National Treasury database of restricted suppliers.

As at 20 August 2026, National Treasury had recorded the details of 35 companies and 45 directors or owners, linked to the restricted companies, on the National Treasury database of restricted suppliers, following referrals arising from Eskom’s supplier disciplinary process. The implication of this listing is that the affected suppliers are restricted from doing business with the State for the applicable restriction period, thereby reinforcing accountability beyond Eskom and supporting a broader public-sector response to unethical conduct.

This list can be found at: Restricted Supplier and Tender Defaulter Report

Next steps

Additional matters are being prepared for submission to National Treasury, demonstrating Eskom’s commitment to pursuing consequence management through to its full conclusion.

The enhanced supplier disciplinary framework further enables a more consistent and timely response to new allegations of supplier misconduct. Clear procedures for case initiation, supplier notification, consideration of representations and adjudication help to ensure that matters are managed efficiently while upholding procedural fairness and administrative justice.

Reporting concerns

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 on 0800 112 722 or via WhatsApp on 081 333 3323.

Courtesy of Eskom

About Eskom and Electricity – Founded: Eskom was established in 1923.