The Special Investigating Unit (SIU) has secured a preservation order to freeze 17 immovable properties and seven luxury vehicles linked to businessman Siyabonga Moses Goodwill Nkosi. The assets, which include properties worth R76.5 million, were frozen following a law enforcement operation sanctioned by the Special Tribunal.
Procurement Manipulation at Eskom
The asset freeze follows an investigation authorized under Proclamation R.80 of 2022. The SIU uncovered a scheme where Eskom officials at the Matla and Kusile Power Stations allegedly turned procurement into a “jackpot” between 2021, and 2023.
According to the SIU, officials approved irregular and inflated purchase orders for relays—essential equipment for power station operations. While the market price for these relays ranged between R180 and R450, contracts were signed at R50,000 per unit.
This manipulation resulted in a direct financial loss of R73,650,994.87 to Eskom. The SIU further alleged that officials split purchase orders to keep transactions below the R1 million threshold, allowing them to bypass formal procurement processes and abuse the informal tendering system.
Laundering Through Trust Networks
The investigation revealed that false part numbers were uploaded to Eskom’s systems to ensure only colluding vendors could bid. This resulted in the purchase of equipment that was never needed and remains unused in stock.
Siyabonga Moses Goodwill Nkosi is cited personally and as a trustee of the Siyabonga Kankosi Trust, the Sibongukukhanya Trust, and the Nkosi Royal Trust. The SIU alleges these entities served as conduits to launder procurement funds into luxury assets.
These funds were allegedly used to acquire prime properties and land in Mpumalanga, KwaZulu-Natal, and Gauteng. The frozen luxury garage includes a Panamera, Porsche Cayennes, and Lamborghinis.
Legal Implications and Next Steps
The preservation order, granted by Judge Bernard Ngoepe, prevents Nkosi from selling, transferring, or hiding assets. This measure ensures that funds may be available as the SIU seeks to recover public money and set aside irregular contracts.
Under the Special Investigating Units and Special Tribunals Act 74 of 1996, the SIU may now launch further proceedings within 60 days of the order.
Potential next steps could include the referral of criminal evidence to the National Prosecuting Authority (NPA). The SIU is authorized to initiate civil proceedings in a Special Tribunal or the High Court to recover financial losses suffered by the State.
Frequently Asked Questions
What specific assets have been frozen by the SIU?
The SIU has frozen 17 immovable properties valued at R76.5 million and seven luxury cars, including Lamborghinis, Porsche Cayennes, and a Panamera.
How much money did Eskom lose due to the relay procurement scheme?
The manipulation of relay contracts resulted in a direct financial loss of R73,650,994.87 to Eskom.
Which trusts were allegedly used to launder the funds?
The funds were allegedly laundered through the Nkosi Royal Trust, the Sibongukukhanya Trust, and the Siyabonga Kankosi Trust.
Do you believe stricter thresholds for informal tendering could prevent similar procurement losses in the future?
