Eskom
Eskom Holdings SOC Ltd is South Africa’s state-owned electricity utility, generating approximately 95% of the country’s electricity. It is the largest power utility in Africa and was historically one of the world’s cheapest electricity providers. Eskom became the single most damaged institution of South Africa’s state capture era: a combination of Gupta-directed corrupt procurement, cadre deployment of incompetent executives, and R500bn+ in accumulated debt has produced the worst electricity crisis in the country’s history, with load-shedding reaching Stage 6 (6,000MW off the grid) for extended periods between 2022–2024.
Gupta state capture at Eskom (Zondo Commission Vol 4): The Gupta Family’s seizure of influence at Eskom was systematic and operated through three reinforcing phases: board capture, executive capture, and contract diversion. Gupta associate Salim Essa used the email account infoportal@zoho.com to send lists of preferred board candidates to then-Minister of Public Enterprises Lynne Brown. Zola Tsotsi (Brown-appointed Eskom board chair) testified he received the list and was instructed to effect the appointments. Dudu Myeni was similarly connected to this network. The Zondo Commission’s total finding: R14.7 billion in contracts at Eskom impacted by state capture, predominantly benefiting Gupta-linked entities.
Key executives and their roles:
- Brian Molefe (CEO, 2015–2017): facilitated from Transnet by Brown. Zondo found “reasonable grounds to conclude Molefe had received bags of cash from the Gupta family.” Named a key player alongside Koko and Singh. Launched legal proceedings in 2024 to overturn the Zondo findings.
- Anoj Singh (CFO): served at both Transnet and Eskom; cross-entity financial conduit for Gupta-linked contracts. Recommended for criminal investigation.
- Matshela Koko (acting CEO): recommended for criminal charges for facilitating the Optimum coal mine acquisition and improper McKinsey/Trillian contracts.
Optimum coal mine acquisition: Koko and Singh fed confidential Glencore negotiating information to Salim Essa, giving Gupta-owned Tegeta Exploration and Resources a pricing advantage in acquiring Glencore’s Optimum coal mine. Eskom made an irregular R659 million prepayment to Tegeta plus a R1.68 billion guarantee in April 2016 — Zondo found these “not made for the purpose of furthering the interests of Eskom” but to bail out the Gupta acquisition. Zondo: Koko, Singh, Zwane, and Molefe “made themselves complicit in knowingly assisting the Guptas to acquire the Optimum coal mine.” All Eskom officials involved in Tegeta transactions: “guilty of theft and ought to face criminal charges.”
McKinsey & Trillian advisory contracts: McKinsey and Trillian Capital Partners (Salim Essa majority owner) received ~R1.6bn in improper advisory contracts. McKinsey subsequently made refunds under deferred prosecution agreements with the NPA and the US Department of Justice, admitting to bribery under the Foreign Corrupt Practices Act. Zondo recommended Molefe, Singh, and Koko be criminally investigated for these awards.
The Gupta-owned coal company Tegeta Exploration and Resources also received a R3.7 billion coal supply contract at Brakfontein Colliery, declared unlawful by the Special Investigating Unit (SIU) in 2020. Eskom executive Abram Masango was suspended in 2018 over irregularities at Kusile power station.
Shanduka Group connection: When Cyril Ramaphosa was appointed to chair Eskom’s “war room” in December 2014 (to revive the struggling utility), the DA’s Pieter van Dalen raised that Shanduka Group held coal supply interests at Eskom, creating a potential conflict of interest. The Presidency confirmed in May 2015 that Ramaphosa had divested from Shanduka on assuming Deputy Presidential office and held no mining interests.
Post-state-capture: 42 Eskom employees were dismissed for fraud and corruption post-Zondo. Eskom collaborates with the NPA and SIU on state capture recovery. The utility’s R500bn+ debt burden required a government debt relief programme from 2023 onwards.
Connections
- Gupta Family — Tegeta coal contracts (R3.7bn, unlawful); Salim Essa orchestrated board appointments via infoportal email; Optimum coal mine acquisition; Zondo Vol 4
- Lynne Brown — Minister of Public Enterprises 2014–2018; appointed Gupta-aligned board; “witting participant” (Zondo)
- Brian Molefe — CEO 2015–2017; “bags of cash” finding (Zondo); moved from Transnet; arrested June 2025
- Anoj Singh — CFO; cross-entity conduit at Transnet and Eskom; arrested June 2025
- Trillian Capital Partners — R1.6bn advisory contracts alongside McKinsey; Salim Essa majority owner
- Zondo Commission — Part 4 Vol 4 (1,064 pages) dedicated to Eskom capture; R14.7bn total corrupt contracts
- Jacob Zuma — his administration enabled Gupta capture of Eskom boards and procurement
- Cyril Ramaphosa — chaired Eskom “war room” as Deputy President Dec 2014; Shanduka coal conflict flagged; divestment confirmed
- Shanduka Group — held Eskom coal interests; potential Ramaphosa conflict-of-interest (resolved)
- Special Investigating Unit (SIU) — declared Tegeta Brakfontein contract unlawful 2020; continuing Eskom investigations
- Dudu Myeni — Gupta-aligned board network; parallel with her SAA role
- Transnet — companion SOE; Brian Molefe moved from Transnet CEO to Eskom CEO; same Gupta network