//South Africa: Two former power utility execs nabbed for fraud

South Africa: Two former power utility execs nabbed for fraud

Two former managers from South Africa’s state-owned power utility Eskom have been arrested on allegations of involvement in manipulation of contractual agreements involving procurement transactions at Kusile Power Station in Mpumalanga Province, the South African Police Services (SAPS) announced on Thursday.The unnamed officials were arrested early Thursday morning for the alleged fraud and money-laundering deals amounting to the US$50 million, the SAPS said.
Apart from the managers, also arrested were two alleged accomplices who are business directors of seven companies involved in the scam, the law enforcers said.
Those arrested were expected to appear in court on Thursday to answer charges of the alleged fraud, corruption and money-laundering.
According to the police, the managers were arrested following investigations pointing to manipulation of contractual agreements between Eskom employees, the contractors and the third parties (companies).
Embattled Eskom is the subject a major probe into state capture, which saw billions of dollars of its funds channelled to dubious hands, including that of the fugitive Indian-born Gupta brothers.
The three brothers, who flourished under former President Jacob Zuma who openly admits the Guptas are his family friends, fled to Dubai when a police dragnet got closer to them.