For years, South Africans have watched with a mixture of frustration and despair as Eskom’s diesel bill ballooned, eating up billions of rands while the lights flickered and died. The explanation from the power utility was always the same: the open-cycle gas turbines (OCGTs) were necessary to keep the grid stable during periods of high demand or generation shortfall. Diesel was expensive, but it was the price of keeping the country running.
Now, a bombshell interim investigation has suggested that the price may have been far higher than it ever needed to be—and that some Eskom employees may have helped make it that way.
Eskom has launched disciplinary proceedings against several employees following an interim investigation into its R6.4 billion diesel procurement and storage contract, the utility announced on Thursday. In a statement that sent shockwaves through the energy sector and beyond, Eskom also warned that criminal prosecution has not been ruled out, depending on the final findings of the full probe.
“The investigation has uncovered serious breaches of Eskom’s supply chain management policies, governance failures, and potential financial misconduct,” said Eskom spokesperson Daphne Mokoena. “As a result, disciplinary processes have been initiated against identified employees. Furthermore, Eskom has referred the matter to law enforcement authorities for consideration of criminal prosecution.”
The investigation, launched earlier this year after whistleblower complaints, is examining a contract for the procurement and storage of diesel for the OCGTs—the very turbines that are supposed to be used only as emergency backup but have increasingly become a crutch for Eskom’s failing coal-fired fleet. The contract, valued at a staggering R6.4 billion, covers a multi-year period and involves multiple suppliers, logistics companies, and storage facilities across the country.
The Diesel Problem: A Longstanding Sore Point
To understand the gravity of the investigation, one must first understand the role of diesel in Eskom’s operations. South Africa’s OCGTs—located at Ankerlig in the Western Cape, Gourikwa in the Southern Cape, and a few smaller facilities—are designed to run on either gas or diesel and are intended to be used only during peak demand or emergencies. They are efficient but extraordinarily expensive to run. Burning diesel to generate electricity costs roughly ten times more than burning coal.
During the height of load-shedding in 2022 and 2023, Eskom burned through diesel at a terrifying rate. In the 2023 financial year alone, the utility spent over R12 billion on diesel—more than double its budget. The OCGTs were running not just during emergencies but almost continuously, as Eskom scrambled to compensate for broken coal units and sabotage.
The R6.4 billion contract now under investigation was supposed to bring order to this chaos: a structured, competitive, transparent procurement process that would ensure Eskom had enough diesel when it needed it, at fair market prices. Instead, according to the interim report, the contract became a swamp of irregularities.
“Preliminary findings indicate that the procurement process was compromised,” Mokoena said. “There were instances of non-compliance with supply chain management regulations, possible conflicts of interest, and suspected financial misconduct. We cannot comment further while investigations are ongoing, but the evidence already gathered is deeply concerning.”
What the Investigation Found So Far
The interim report, a copy of which has been seen by this publication, paints a troubling picture. While Eskom has not released the full document, sources close to the investigation have described its key findings.
First, the contract appears to have been awarded without proper competitive bidding. Despite Eskom’s own policies requiring transparent tender processes, the report alleges that certain suppliers were favored over others, with little documentation to justify the decisions. In some cases, suppliers were awarded contracts despite having no track record in bulk diesel supply or storage.
Second, the pricing structure of the contract was opaque. The report alleges that Eskom paid significantly above market rates for diesel during certain periods, with no clear explanation for the premium. In one instance, the utility allegedly paid nearly 18% more than the prevailing spot market price for a major shipment, costing taxpayers tens of millions in unnecessary expenditure.
Third, there were serious concerns about diesel storage and logistics. The contract included payments for storage facilities that, according to the report, were either underutilized, inadequately maintained, or in one case, not even operational at the time of payment. Whistleblowers alleged that diesel was being stored at facilities owned by individuals connected to the tender process—a potential conflict of interest that Eskom’s own investigators are now scrutinizing.
“We are talking about billions of rands,” said energy analyst Chris Yelland. “Diesel procurement should be boring. It should be straightforward. You buy a commodity at market price, you store it properly, you use it when needed. The fact that there is any controversy at all is a scandal. The fact that there is a potential criminal case is unforgivable.”
The Employees: Who Is Being Disciplined?
Eskom has declined to name the employees facing disciplinary action, citing labor law protections and the need for due process. However, sources indicate that the charges span multiple levels of the organization, from mid-level procurement officials to more senior managers in the generation division.
At least one employee has already been suspended pending the outcome of the disciplinary process. Others have been placed on “alternative duties” while their cases are reviewed. The disciplinary hearings, which are expected to begin within weeks, could result in dismissals, fines, or other sanctions if the employees are found guilty of misconduct.
But Eskom’s warning about criminal prosecution suggests that the utility believes some actions may have crossed the line from internal policy violations to violations of the law. Possible charges could include fraud, corruption, theft, or contravention of the Public Finance Management Act (PFMA).
“Where there is evidence of criminal conduct, we will not hesitate to open criminal cases,” Eskom’s Mokoena said. “We have already shared information with the relevant authorities. This is not just about disciplining employees. This is about rooting out wrongdoing at every level.”
The South African Police Service’s Hawks unit has confirmed receipt of a referral from Eskom but declined to comment on whether a formal investigation has been launched. The National Prosecuting Authority (NPA) has also been notified.
The Political Fallout: A Government Under Pressure
The news of the investigation landed like a grenade in an already volatile political environment. The Government of National Unity (GNU) has staked much of its credibility on fixing Eskom and ending load-shedding. The idea that officials within Eskom may have been enriching themselves through diesel contracts—at the very moment South Africans were sitting in the dark—is politically explosive.
“This is precisely the kind of corruption that has broken the country’s trust in public institutions,” said DA spokesperson on energy, Kevin Mileham. “While families were eating dinner by candlelight, while small businesses were losing revenue, while hospitals were running on generators—someone at Eskom may have been lining their pockets. If true, they must face the full might of the law. No excuses. No second chances.”
The EFF echoed the call for prosecution, with party spokesperson Sinawo Thambo saying: “The EFF has long warned that Eskom’s diesel contracts were a slush fund for tenderpreneurs. Now we have proof. The employees involved must be named, shamed, and jailed. And the board must explain how this happened on their watch.”
Eskom’s board, led by Chairperson Mteto Nyati, has promised full cooperation with investigators and has vowed to implement all recommendations from the final report. Nyati, appointed in 2022 to clean up the utility, has already overseen the dismissal of several senior executives for unrelated misconduct. The diesel probe is his biggest test yet.
“We will not shield anyone,” Nyati said in a brief statement. “Eskom is being rebuilt. That means holding people accountable, even when it is painful. The era of impunity is over.”
The Whistleblowers: Unsung Heroes
None of this would have come to light without the courage of whistleblowers inside Eskom who risked their careers—and potentially their safety—to speak up. According to sources, at least three employees independently raised concerns about the diesel contract over the past 18 months. Their complaints were initially ignored or dismissed, but eventually escalated to Eskom’s forensic unit, which launched the investigation.
“These whistleblowers are heroes,” said advocate Paul Hoffman of Accountability Now. “They saw something wrong, and they said something. In a country where whistleblowers are often ostracized, threatened, or worse, that takes immense courage. Eskom must protect them. And the law must reward them, not punish them.”
South Africa has legal protections for whistleblowers under the Protected Disclosures Act, but enforcement has been inconsistent. High-profile cases—such as the murder of whistleblower Babita Deokaran—have highlighted the dangers faced by those who expose corruption. Eskom has confirmed that the whistleblowers in this case have been offered “support and protection,” though no details were provided.
The Broader Context: Eskom’s Turnaround Under Scrutiny
The diesel probe comes at a delicate moment for Eskom. After months of relative stability—including the longest stretch without load-shedding since 2021—the utility has been touting its turnaround. Generation capacity has improved, unplanned outages have decreased, and the utility has even begun to report operational profits.
But the diesel probe threatens to overshadow that progress. If it turns out that Eskom employees were actively defrauding the utility at the same time that executives were promising reform, public trust could suffer a catastrophic blow.
“Perception matters,” said energy analyst Lungile Mashele. “People are tired. They are tired of corruption. They are tired of load-shedding. They are tired of excuses. If Eskom wants credit for the improvements, it must also take responsibility for the failures. That includes this diesel mess.”
Eskom’s leadership seems to understand the stakes. By announcing the investigation publicly, launching disciplinary action, and referring the matter for possible prosecution, the utility is signaling that it is serious about accountability. But actions speak louder than press releases. South Africans will be watching to see whether anyone actually goes to jail.
The Economic Impact: A Cost That Keeps Growing
Beyond the political and legal dimensions, the diesel scandal has real economic consequences. The R6.4 billion contract is not monopoly money. It is taxpayer money. It is borrowed money—Eskom’s debt, much of it guaranteed by the state, ultimately falls on the fiscus. Every rand lost to corruption or mismanagement is a rand that could have been spent on hospitals, schools, roads, or social grants.
Moreover, the overpayment for diesel directly affects Eskom’s financial health. The utility has been bleeding cash for years, kept alive by government bailouts and debt relief. High diesel costs have been a major contributor to those losses. If the investigation finds that Eskom was systematically overcharged, the utility may have grounds to seek recoveries from suppliers—though such legal battles could take years.
“The diesel cost is not an abstraction,” said economist Dr. Azar Jammine. “Every extra rand Eskom spends on diesel is a rand that cannot be spent on maintenance, on grid upgrades, on new transmission lines. It is also a rand that may eventually need to be recovered through higher tariffs. So the consumer pays twice—once through the inflated contract, and again through higher electricity prices. That is perverse.”
What Happens Next?
The interim investigation is expected to be followed by a final, comprehensive report within the next three months. That report will include the forensic accounting findings, witness testimony, and a full timeline of events. It will also include recommendations for further action, both internal and criminal.
In the meantime, Eskom has frozen any new diesel procurement pending a review of the contract. The utility has also brought in external auditors to conduct a parallel review, ensuring that no stone is left unturned.
“We want the truth,” Nyati said. “Whatever that truth is, we will face it. And we will act on it.”
For the employees facing discipline, the coming weeks will be a test of Eskom’s labor processes. They have the right to representation, to present evidence in their defense, and to appeal any adverse findings. Some may choose to resign before the disciplinary hearings conclude—a common tactic to avoid formal dismissal.
For the criminal investigation, the timeline is less certain. The Hawks and NPA move slowly, weighed down by underfunding, understaffing, and a backlog of cases. But the political pressure to fast-track this investigation will be intense.
A Nation Waits
As the sun set over Pretoria on Thursday evening, the Eskom headquarters remained lit—a rare sight in load-shedding-plagued South Africa. Inside, lawyers and investigators worked late, poring over documents and preparing cases.
Outside, ordinary South Africans went about their lives, cooking dinner, helping children with homework, scrolling through news alerts. Many expressed a weary resignation.
“I am not surprised,” said Thabo Mokoena, a father of two from Soweto, as he waited for a taxi. “Every week there is a new scandal at Eskom. Someone stealing something. Someone lying about something. We are tired. We just want the lights to stay on. Is that too much to ask?”
For Eskom, the diesel probe is a test of whether the utility can finally break its cycle of scandal. For the government, it is a test of whether the promise of accountability is real. And for the nation, it is yet another reminder that the cost of corruption is measured not only in rands—but in darkness.
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