Eskom Admits R3 Billion Paid Outside Contract Terms in Diesel Probe

The admission, made after an 18-month internal investigation into R21 billion in diesel contracts, signals that South Africa's state power utility made substantial irregular payments without fully...

South Africa's state-owned power utility Eskom has acknowledged that approximately R3 billion was paid to suppliers outside of contractual terms, according to results released from an internal investigation that ran for 18 months, as reported by amaBhungane and Daily Maverick.

The investigation examined R21 billion worth of diesel procurement contracts, making the R3 billion figure roughly 14 percent of the total contract value under scrutiny. Eskom did not dispute that these payments occurred outside agreed contractual frameworks, according to the Daily Maverick report published August 28, 2026.

AmaBhungane, the South African investigative journalism nonprofit that has tracked the Eskom diesel contracts for several years, reported that Eskom's published findings fell short of full disclosure. The organization described the utility's release as failing to make a complete and frank account of what the investigation uncovered, without specifying what information was withheld or why.

The diesel contracts at the center of the probe relate to emergency fuel procurement Eskom undertook to power backup generators during periods of severe load shedding, the rolling blackouts that have affected South African homes and businesses for more than a decade. Eskom operates open-cycle gas turbine plants that run on diesel when the primary coal-powered grid cannot meet demand.

Eskom has historically faced criticism from South Africa's auditor-general for irregular, fruitless, and wasteful expenditure. In its 2022-2023 financial year, the auditor-general flagged billions of rand in such spending across the utility's operations, according to reporting by South African public broadcaster SABC News at that time. The diesel contract investigation represents one of the more concentrated probes into a specific procurement category.

The South African government holds a controlling stake in Eskom through the Department of Public Enterprises, meaning irregular payments at the utility affect public finances directly. The National Treasury has extended multi-year debt relief to Eskom, with a R254 billion debt relief package announced in the 2023 national budget, according to the National Treasury's official budget documents from February 2023.

What remains unknown from the August 28 release is the identity of the contractors who received payments outside contractual terms, the specific contracts involved, and whether any disciplinary or legal referrals have been made. AmaBhungane's reporting indicates those details were not made public in Eskom's released findings. Full disclosure would require Eskom to publish contract-by-contract breakdowns and name the implicated parties, steps the utility has not yet taken, according to the Daily Maverick report.

Eskom's board and executive leadership have changed multiple times since the diesel contract period in question. The current group chief executive, Dan Marokane, was appointed in early 2024, after the bulk of the contested procurement took place, according to Eskom's official communications at the time of his appointment.

South Africa's Special Investigating Unit, a state body authorized to probe public sector corruption and recover state funds, has previously been granted a presidential proclamation to investigate Eskom matters, though it is not confirmed from available reporting whether the diesel contracts fall within the current active SIU mandate.

The amaBhungane Centre for Investigative Journalism is a nonprofit organization accredited by the Press Council of South Africa and has produced multiple prior reports on Eskom diesel procurement irregularities, giving the outlet documented institutional knowledge of the contracts under review. Its characterization of the disclosure as incomplete carries weight given that context.

The political implications within South Africa are significant. The Government of National Unity, formed after the May 2024 general election in which the African National Congress lost its parliamentary majority, has made energy security and Eskom reform central policy commitments. Confirmation of large-scale irregular payments will increase pressure on the utility's board to release a more detailed account, though a timeline for any further disclosure has not been announced.