Statement by Kevin Mileham MP – DA Spokesperson on Electricity and Energy:
The Democratic Alliance (DA) calls for an immediate Parliamentary Inquiry into Eskom’s R21 billion diesel procurement saga following revelations that the utility made R3 billion in irregular prepayments to suppliers who lacked the capacity to deliver.
In this regard, the DA will be writing to the Chairperson of the Portfolio Committee on Electricity and Energy to demand an urgent meeting with the Eskom Board to account for these irregularities.
Eskom’s media statement issued yesterday, 15 May 2026, admits to “identified irregularities” and “non-adherence to processes.” However, it carefully avoids the most damning finding: that Eskom bypassed the Public Finance Management Act (PFMA) to provide advance payments to suppliers – a practice that is not only irregular but one that mirrors the corrupt “prepayment” schemes used to fund the Gupta-owned Tegeta coal contracts.
Investigative reports confirm that Eskom approved R3 billion in extraordinary prepayments. These funds were allegedly used to provide liquidity to “middleman” companies that did not have the fuel or the financial standing to fulfil their contracts.
Among the questionable beneficiaries under scrutiny is Severino Industries, which was awarded a R4 billion allocation despite being led by a 24-year-old with no prior energy sector experience, who was appointed just days before the tender closed. Another equally obscure company is Nutinox – a company better known for supplying water tankers to the City of Johannesburg.
Eskom is currently using the “interim” status of its forensic report to hide the full list of beneficiaries. This is an unacceptable attempt to delay accountability until the mid-June final report, while billions in taxpayers’ money remain at risk.
Eskom’s Board and the Minister of Electricity and Energy cannot claim ignorance. The decision to discontinue proactive probity reviews on high-value tenders in October 2022 created the very vacuum that allowed this R21 billion “black hole” to form. While Eskom touts an 81% reduction in diesel spend compared to the R33 billion recorded in FY2023, this “operational success” cannot be used to hand-wave away the massive looting that occurred under their collective watch.
The DA demands that the Minister immediately table all diesel supply and storage contracts related to tender MWP2197GX in Parliament. The Eskom Board must be summoned to the Portfolio Committee on Electricity and Energy next week to explain why prepayments – a “red-flag” practice since the Zondo Commission – were ever authorised. Further, Eskom must initiate immediate legal action to recover all R3 billion in prepayments from suppliers who failed to meet their technical and financial obligations.
We will not allow Eskom to treat the National Treasury as a private ATM for “emergency” shell companies. The era of the “prepayment loophole” must end today.
Lilac Lizard
Fun South African Fact: For nearly 50 years, there was a state of apartheid – white minority rule – in South Africa.
Grotas
Oom – older man of authority / Uncle [oo-um] Used in reference to an older uncle or even someone who is not your uncle but in an authority position. Usually expressed with respect.